Returns on investment for shareholders of GlaxoSmithKline Nigeria Plc in terms of dividend stood at N430.52 million in the financial year ended December 31, 2007, culminating in 45 kobo per share, the same amount paid in 2006.

The dividend was paid over a turnover, which fell from N10.4 billion in 2006 to N9.9 billion in 2007, and a profit after tax, which fell from N1.1 billion to N836.9 million.

However, there seem to be hope for investors as the company's after tax profit in the first quarter ended March 31, 2003 showed an increase of 123 per cent from N182.2 million in 2007 to N405.96 million in the review period, over a turnover, which rose by 38 per cent from N2.16 billion to N2.97 billion, and a profit before tax, which rose by 126 per cent from N260.22 million to N588.34 million.

Addressing shareholders in Lagos on Tuesday, the company's Chairman, Chief Olusegun Osunkeye explained that the decline in profitability did not affect the shareholders' fund and reserves, which initially increased by 10 per cent.

He added that the company's performance has taken a new turn with its first quarter report for this year showing a remarkable increase in turnover and profit.
His words: "I believe that we have turned the corner as the investments have started to yield positive results by way of availability of our products in the right quantity to meet market demand. The unaudited trading result for the first quarter of 2008 is a manifestation of this trend. During this period, turnover grew by 38 per cent, profit before tax by 126 per cent and profit after tax by 123 per cent.
"Barring any unforeseen development, the trend is expected to continue for the rest of the year," he assured.

According to Osunkeye, the first half of 2007 was greatly affected by the country's adverse operating environment and the energy crisis, which had serious adverse effect on supplies adding that the company had to make significant investments to guarantee continuous production.
"The energy situation was and is still deplorable. In all these, the manufacturing sector appeared to have been worst hit, as power outages have become a permanent feature of the country. This along with inadequate infrastructure, increase in the price of petroleum products and unstable; political climate in the Niger - Delta region also impacted negatively on the cost of production as well as the distribution and sales of products.

He also assured shareholders that the company had taken appropriate measure to safeguard its performance this year and the years ahead. He said the company had launched a "High Performance Behaviours" (HPBs) programme in 2007 as a measure to ensure the accomplishment of its business objectives in 2008 and beyond.

"The HPBs programme is also designed to build on the company's leadership essentials, reinforce the company's commitment to develop its people, create a common threat to run through the entire employee lifecycle and clarify how employees can maximise their performance. Furthermore, HPH's are to bring about contemporary organisational thinking to help the company meet its future challenges," he further said.