GLAXO SMITHKLINE: YEA, TOUGH 2015 INDEED.

The financial year 2015 was indeed tough for Glaxo SmithKline Consumer Nigeria PLC because almost everything danced outside played tunes.
According to the audited figures released recently, both core revenue and total income grew grudgingly, investment income took a dive, while most costs rose ahead of income growth.
Core revenue had risen by 0.37% to N30634.7m from N30521.7m only to end up with even a lower (0.28%) increase in total income to N30668.6m from N30580.6m.
This was because investment income dropped by 43% to N33.9m from N59.5m.
Yet in spite of this cost of goods sold rose by 2.99% to N20308.5m decreasing gross profit by 4.4% to N10326.2m.
In addition 32.4% increase in administration costs to N2886.4m from N2179.6m and 1.07% rise in selling and distribution costs to N5699.5m applied more pressure on the company's bottom line.
The end result would have been worse than the 57.9% drop in profit before tax recorded eventually to N1157.5m from N2752.2m.
It was mitigated by 27.7% decrease in finance charges to N3.7m from N5.12m and reduced loss of N613m from other activities as against N838.3m loss here in 2014.
SO:
* Sure 2015 was a tough year indeed for Glaxo SmithKline Consumer Nigeria PLC.
* This is hoping that 2016 eases the pressure which pushed down gain on N100 income from N9 in 2014 to just N3.77 by 2015.

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