Dec 14 (Lagos) - Shares of Ilupeju based GlaxoSmithKline Consumer Nigeria Plc became the latest shares of a multi National giant to hit a 5 year low level on Nigerian Stock Exchange.
GLAXOSMITH has continued to hit new lows, dropping another 9.48 % today to close the week at N 5.25. The equity, which opened the year at N 14.50, has now declined 63.79% YTD and is currently at its a five-year low.
Just as recently as 2 years ago the stock was near N 20 as they announced special dividend following sale of its Ribenna drinks business to Suntory Group of Japan. Turns out that was the best time to sell the stock after collecting the dividend. The investors who managed to do that must be smiling after looking at todays stock price.
While the ones who bought the stock since then are definitely not smiling. GSK is a powerhouse globally but seems to be struggling in Nigeria as the group has decided to outsource production to local companies like
FIDSON from 2021 onwards. It is clear this company is not what it used to be and it shows in the stock price.
The company reported N 618 million PAT for 2018 on sales of over 18 billion. That's a net margin of just over 3.3% hope investors can recover in future.
reporting for easykobo.com on Friday, Dec 14 2019 from Lagos, Nigeria