gsk nigeria - glaxo 2010 ar · 2016. 8. 23. · consumer nigeria plc. rc: 8726 2010 2009 n'000...

2010 2009 2010 2009Notes N'000 N'000 N'000 N'000

Fixed assets 11 6,880,710 4,788,426 6,880,710 4,788,426

Long term investment 12 - - 160 160

6,880,710 4,788,426 6,880,870 4,788,586

Current assets

Stock 13 4,380,927 3,494,299 4,361,915 3,465,644

Debtors 14 2,349,049 1,646,300 1,838,385 1,616,061

Bank and cash balances 15 1,127,226 2,149,337 1,072,888 1,353,814

7,857,202 7,289,936 7,273,188 6,435,519

Creditors due within one year 16 (4,646,040) (3,851,319) (5,091,044) (3,863,623)

Taxation 8 (497,297) (774,657) (413,653) (719,088)

(5,143,337) (4,625,976) (5,504,697) (4,582,711)

Net current assets 2,713,865 2,663,960 1,768,491 1,852,808

The Group The Company

Total assets less current liabilities 9,594,575 7,452,386 8,649,361 6,641,394

Defered taxation 17 (914,389) (407,264) (914,389) (406,575)

Retirement benefits and related obligations 18 (349,777) (461,881) (349,777) (461,881)

Net assets 8,330,408 6,583,241 7,385,195 5,772,938

Capital and reserves

Share capital 19 478,351 478,351 478,351 478,351

Share premium 20 51,395 51,395 51,395 51,395

Revaluation reserve 21 24,721 24,721 24,721 24,721

General reserve 22 7,775,941 6,028,774 6,830,728 5,218,471

Shareholders funds 8,330,408 6,583,241 7,385,195 5,772,938

34

Balance SheetsAs at 31 December, 2010

The financial statements and notes on pages 36 to 46 were approved by the Board of Directors on February 28, 2011 and signed on its behalf by

Chief Olusegun O. Osunkeye, OON

Mr. Chidi Okoro

Consumer Nigeria Plc. RC: 8726

The statement of significant accounting policies on pages 31 to 32 and the notes on pages 36 to 46 form an integral part of these financial statements.

Directors

38

2010 2009 2010 2009

6. Interest charges N'000 N'000 N'000 N'000On bank loans and overdrafts

- repayable within 1 year 696 1,500 31,641 1,449

7. Profit before taxation is stated after charging:

Depreciation 537,008 513,651 537,008 513,651

16,695 14,100 16,695 14,100

87,002 224,927 87,002 224,927

Auditors fees

Gratuity provision

8. Tax on profit on ordinary activities i) Per profit and loss account

Based on the profit for the year as adjusted:

Company tax 441,139 718,774 375,242 666,249

Education tax 67,845 48,993 63,452 45,948

Deferred tax charge 507,814 -

Charge for the year909,491 767,767 824,744 712,197

ii) Per balance sheet

At 1 January :

Income tax 729,690 603,334 705,995 576,505

Education tax 44,967 41,610 13,093 9,070

774,657 644,944

719,088

585,575


Notes To The Financial Statements cont’d

Payment during the year:

Income tax (617,388) (495,761) (563,612) (440,102)

Education tax (62,338) (45,636) (58,753) (41,925)

Transfer to deferred tax 689 (96,657) - (96,657)

(679,037) (638,054) (622,365) (578,684)

333,832 718,774 253,478 666,249

67,845 48,993 63,452 45,948

401,677 767,767 316,930 712,197

497,297 774,657 413,653 719,088

Provision for the year:

Income tax

Education tax

At 31 December


- 507,814

Prior year tax over provision

2010 2009 2010 2009

N'000 N'000 N'000 N'000

(107,307) -- (121,764)

13. Stock

Raw and packaging materials 1,159,526 1,550,546 1,159,544 1,550,546

Work in progress 3,512 11,773 3,512 11,773

Finished goods 2,466,035 1,213,490 2,447,005 1,184,835

Goods in transit 463,891 460,778 463,891 460,778 4,092,964 3,236,587 4,073,952 3,207,932

Spares 287,963 257,712 287,963 257,712

4,380,927 3,494,299 4,361,915 3,465,644

14. DebtorsAmounts falling due within one year:

Trade debtors

Other debtors

Amount due from related companies

Prepayments

1,065,544

951,860

17,749

313,896

2,349,049

817,196

425,745

198,751

204,608

1,646,300

1,039,270

467,999

17,749

313,367

1,838,385

788,641

425,228

198,751

203,441

1,616,061


2010N’000

2009N’000

2010N’000

2009N’000

15. Bank and cash balancesCash at bank and in hand 1,127,226 2,149,337 1,072,888 1,353,814

16. Creditors due within one year

Trade creditors 876,426 947,935 854,064 947,282

Amounts owed to related companies 2,169,170 1,527,475

2,689,186

1,588,405

Dividend payable (note 9) 153,721 122,223 153,721 122,223 Other creditors 668,163 395,086 615,513 390,001

Accruals 778,560 858,600 778,560 815,712

4,646,040 3,851,319 5,091,044 3,863,623

17. Deferred Taxation

As at 1 January 407,264 310,607 406,575 309,918

At 31 December 2010 914,389 407,264 914,389 406,575

Charge for the year (Note 8) 507,814 96,657 96,657 507,814

41

Write-back (689) - --


19. Share capitalAuthorised960,000,000 ordinary shares of 50k eachCalled up and fully paid:956,701,190 ordinary shares of 50k each

20. Share premium (group and company)At 1 January and 31 December

21. Revaluation reserveAt 1 January and 31 December (Note 11)

22. General reserve At 1st JanuaryRetained profit for the yearDividend paid

480,000

478,351

51,395

24,721

4,896,992 1,701,829

3,974

6,028,774

480,000

478,351

51,395

24,721

4,210,3741,578,144

3,974

5,218,471

Unclaimed dividend now statute barred

480,000

478,351

51,395

24,721

6,028,774 2,461,395

7,775,941

480,000

478,351

51,395

24,721

5,218,4712,326,484

6,830,728


At 31st December

The Company operates a gratuity scheme for the benefit of its employees. Under the scheme, employees are entitled to gratuities , which vary with the employeees' periods of service and are payable on disengagement from service based on salaries at the time of retirement or resignation. The Company policy is to make unfunded provisions for the cost of currently accruing benefits based on current year salaries.

The company also operates a contributory pension scheme in line with the Pension Reform Act 2004 where employer and employee contributions are deducted and remitted to the approved Pension Fund Administrators on a monthly basis.

42

The Group The Company2010

N’0002009

N’0002009

N’00018. Retirement benefits andother related obligations

At 1 JanuaryCharge for the yearPayments during the year

At 31 December

527,304224,927

(290,350)

461,881

527,304 224,927

(290,350)

461,881

461,88187,002

(199,106)

349,777

2010N’000

461,88187,002

(199,106)

349,777


2010N’000

2009N’000

2010N’000

2009N’000


(717,526) (717,526) (574,021) (574,021)3,299 3,299


2010 2009

23. Cash generated from operations

N'000 N'000

Reconciliation of profit before income tax to cash generated from operations

Profit before tax 3,370,886

2,469,596

Depreciation 537,008 513,651

(Profit)/loss on disposal of assets (6,159) 35,204

Interest income (37,673) (105,249)

Operating profit before working capital changes

696 1,500

Changes in working capital:

Increase in stock

3,864,758 2,914,702

(Increase)/decrease in debtors and prepayment

Increase in amount due to related companies

(886,628) (955,206)

Increase in creditors and accruals

(883,751)

298,031

379,785

1,019,891

Cash generated from operations

(112,103) (65,423)

24. Capital expenditure authorised by the directors:

Committed

3,233,020 3,567,453

25. Related Party Transactions

The following are the transactions with related parties

(a) Purchase of goods and services

GSK Export Ltd UK 3,853,330 3,025,130

GSK Dungaravan 625,208 726,865

GSK Biologicals 89,185373,050

59,444

265,353_

63,099

5,000,217 4,080,447


2010 2009N'000 N'000

3,151,229

2,290,341

537,008 513,651

(6,159) 35,204

(18,028) (57,943) 31,641 1,449

3,260,091 2,782,703

(896,272) (926,659)

(403,325)

296,026

353,262

1,007,502

(112,103) (65,423)

3,483,434 3,245,810

3,853,330 726,865

625,208 467,283

89,185373,050

59,444

265,353_

63,099

5,000,217 4,080,447


43

Notes

11

4

4

6

13

14

16

17

Interest charges

870,959 355,458 1,281,782 151,661

Decrease in retirement benefit obligations

471,675 417,474 417,474471,675

GSK IndiaGSK Panama

Investment income (435,600)_ _ _


2010 2009N'000 N'000

The Group

(ii) amount receivable from related partiesGSK Biological Manufacturing - 10,719 - 10,719

GSK OPS UK Area 3,026 - 3,026 -

GSK India 4,180 - 4,180 - GSK Pharmaceutical Nigeria 144,230 144,230

GSK Export-CrossCharge 10,543 43,802 10,543 43,802 Total 17,749 198,751

(b) Related party balances

The balances that arose in respect of the related party transactions as at the year-end are:

(i) amounts payable to related partiesWinster Pharmaceuticals - -

1,132,440

786,171

1,132,440

786,171

Beecham Group

GSK Export Ltd UK

36,143 - 36,143 - GSK Biological Manufacturing - 156,548 - 156,548

GSK Dungarvan 538,617 538,617420,479 420,479

SB Services Unlimited 251,454 251,454 - -

GSK Panama 24,709 109,581

24,709 109,581

SB CORP - GSK Clifton 61,592 44,068 61,592 44,068

GSK Pharmaceutical Nigeria 113,215 113,215

Total 2,169,172 1,527,475 2,689,187 1,588,405

The Company

2010 2009N'000 N'000


44

Inter Com - GW South Africa 11,001 10,323 11,001 10,323

520,015 60,930

Inter-Company-Kenya Special 305 305

17,749 198,751

26. Royalty and technical aid fees

27. Contingent liability

28. Reclassification

The company has a royalty and technical aid agreement with GSK Export UK. The agreement covers the products of the overseas company produced and marketed by Glaxosmithkline Consumer Nigeria Plc and technical/other support enjoyed by GSK under the agreement. The fees payable under the agreement are computed at 1% of turnover of the category products for both royalty agreement and technical aid agreement. The amounts due during the year amounted to N81.218m (2009: N100.786m) and N81.218m (2009: N100.786m) for royalty fee and technical aid fee respectively.

The company is currently involved in a number of civil actions in court either as defendant, co-defendant or as plaintiff. The cases are at various stages of adjudication and our solicitors are adequately protecting and promoting our interest. Based on the facts, it is the opinion of the directors that the net effect of the current actions will not be material.

Certain prior year balances have been reclassified to enhance comparability with current period balances and to meet accounting standards disclosure requirements.

- -

- -

29. Directors and employeesEmployeesThe number of full-time persons employed as at 31 December 2010 was as follows:

2010 2009 Number Number

Adminstration 78 89 Sales and distribution 69 57 Marketing 10 9 Production 190 200

347 355

Staff cost for the above persons: N'000 N'000 Wages and salaries 1,225,544 969,966 Other benefits 207,879 250,323 ` 1,433,423 1,220,289

Directors and employees

200,001 to 300,000 4 - 300,001 to 400,000 - 1 400,001 to 500,000 1 - 500,001 to 600,000 10 4 600,001 to 700,000 1 9 700,001 to 800,000 8 50 800,001 to 900,000 32 21900,001 to 1,000,000 22 9 1,000,001 to 1,500,000 62 67 1,500,001 to 2,000,000 41 71 2,000,001 to 2,500,000 48 34 2,500,001 to 3,000,000 24 12 3,000,001 to 3,500,000 7 6 3,500,001 to 4,000,000 10 12 4,000,001 to 4,500,000 10 10 4,500,001 to 5,000,000 7 2 5,000,001 to 5,500,000 6 8 5,500,001 to 6,000,000 6 3 6,000,001 and above 48 36 347 355

The number of employees of the Company, other than Directors, who earned more than N200,000 in the year:

Naira Number Number2010 2009

45


2010 2009N'000 N'000

The remuneration paid to Directors of the company was 41,399 31,785

Fees and other emoluments disclosed above (including pension contribution) include amounts paid to 2010 2009

N'000 N'000The Chairman 2,805 2,699 The highest paid Director 19,006 16,223 The number of Directors including the Chairman and the highest paid director who received fees and other emoluments including pension Contributions

Naira Naira 2010 20091,000,001 to 2,000,000 1 2 2,000,001 to 3,000,000 2 2 7,000,001 to 8,000,000 1 - 8,000,001 to 9,000,000 1 1 16,000,001 to 17,000,000 - 1 19,000,001 to 20,000,000 1 -

6 6

30. As required by SAS 27 the condensed financial data for Winster Pharmaceuticals Limited is presented below.

2010 2009 N'000 N'000

Fixed assets - - Current assets 620,165 915,347 Creditors due within 1 year (75,145) (48,626)Taxation (83,644) (55,569)Deferred taxation - (689)

461,376 810,463 Financed by:Capital and Reserves 461,377 810,463

Turnover 365,422 361,332 Gross profit 215,516 195,300 Profit before taxation 219,657 179,255 Taxation (84,747) (55,570)Profit after taxation 134,910 123,685

Cashflow from operation activities (250,419) 382,038 Company income tax paid (57,361) (72,509)Net cash generated from operations (307,780) 309,529 Net cash from investing activities 19,644 - Net cash from financial activities (453,051) - Net increase in cash balances (741,186) 309,529 Cash and cash equivalent at the beginning of the period 795,523 485,994 Cash and cash equivalent at the end of the period 54,337 795,523

a) Condensed balance sheet (financial position)

b) Condensed profit and loss

c) Condensed statement of cashflows


46

Statement of Value AddedFor the year ended 31 December, 2010

Turnover 16,863,533 14,952,445 16,498,111 14,591,113 Other Income 30,032 (82,182) 7,380 (127,233)

16,893,565 14,870,262 16,505,492 14,463,880

Purchase of Goods & ServicesLocal (5,633,962) (5,012,657) (5,540,262) (4,905,930)Imported (6,353,192) (5,652,569) (6,247,530) (5,532,219)

(11,987,154) (10,665,227) (11,787,792) (10,438,149)

Value added 5,342,011 100 4,205,036 100 5,153,300 100 4,025,730 100

Distribution:EmployeesSalaries & Benefits 1,433,423 26.8 1,220,289 29.0 1,433,423 27.8 1,220,289 30.3

Provider of FundsDividend 1,148,041 21.5 717,526 17.1 1,148,041 22.3 7 17,526 17.8 Interest 696 0.0 1,500 0.0 31,641 0.6 1,449 0.0

GovernmentTaxation and Duties 909,491 17.0 767,767 18.3 824,744 16.0 712,197 17.7

The FutureDepreciation 537,008 10.1 513,651 12.2 537,008 10.4 513,651 12.8 Retained Profit 1,313,353 24.6 984,303 23.4 742,843 22.9 860,618 21.4

5,342,011 100 4,205,036 100 5,153,300 100 4,025,730 100

2010N’000

2009N’000

T h e G r o u p T h e C o m p a n y

2010N’000

2009N’000

% % % %

47

This statement represents the distribution of the wealth created through the use of the company's assets through its own and employees' efforts.


Five Year Financial Summary

FIVE YEAR FINANCIAL SUMMARY FOR THE YEAR ENDED 31 DECEMBER 2010


48

2010 2009 2008 2007 2006THE GROUP

Assets employed

Financed by

Profit and loss

The Company

Fixed assets 6,880,710 4,788,426 3,961,995 3,515,775 3,114,228 Current assets 7,857,202 7,289,936 5,649,286 5,203,386 5,754,979

14,737,912 12,078,362 9,611,281 8,719,161 8,869,207

Creditors due within one year 5,143,337 4,625,976 3,321,911 3,331,697 3,986,227 Deferred taxation 914,389 407,264 310,607 258,357 213,916 Provision for liabilities and charges 349,777 461,881 527,304 527,156 475,989 Share capital 478,351 478,350 478,350 478,350 478,350 Share premium 51,395 51,395 51,395 51,395 51,395 Revaluation reserve 24,721 24,721 24,721 24,721 24,721 General reserve 7,775,941 6,028,775 4,896,993 4,047,485 3,638,609

14,737,912 12,078,361 9,611,281 8,719,161 8,869,207

Turnover 16,863,533 14,952,445 12,545,129 9,915,400 10,389,553 Gross profit 7,443,243 6,508,149 5,367,890 3,873,740 4,296,664 Profit before interest charges & taxation 3,371,582 2,471,096 1,852,250 1,174,290 1,565,005 Interest charges 696 1,500 886 7,8414 2,568Profit before taxation 3,370,886 2,469,596 1,851,364 1,166,449 1,522,437 Taxation 909,491 767,767 573,923 329,572 440,144 Profit after taxation 2,461,395 1,701,829 1,277,441 836,876 1,082,293 Profit before taxation as a percentage of turnover 20.0% 16.5% 14.8% 11.8% 14.7%

Proposed dividend*** 1,148,041 717,526 574,021 430,516 430,516 Dividend per share (kobo) 120 75 60 45 45 Earnings per share (kobo) 257 178 134 87 13

Profit before taxation as a % of turnover 19.1% 15.7% 13.8% 10.4% 13.6%Earnings per share (kobo) 243 165 122 75 101

*** Proposed dividend represents dividend for the current year but declared and paid during the following year.

N’000 N’000 N’000 N’000N’000


4

Five Year Financial Trend

49

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gsk nigeria - glaxo 2010 ar · 2016. 8. 23. · consumer nigeria plc. rc: 8726 2010 2009 n'000...

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