GSK Nigeria annual report 2010

3. 2010 2009 2010 2009
Notes 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 Sheets
As 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

7. 38
2010 2009 2010 2009
6. Interest charges N'000 N'000 N'000 N'000
On 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 year
909,491 767,767 824,744 712,197
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
The Group The Company
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
Consumer Nigeria Plc. RC: 8726
- 507,814
Prior year tax over provision
2010 2009 2010 2009
N'000 N'000 N'000 N'000
(107,307) -- (121,764)

10. 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. Debtors
Amounts 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
The Group The Company
2010
N’000
2009
N’000
2010
N’000
2009
N’000
15. Bank and cash balances
Cash 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. DeferredTaxation
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 96,657507,814
41
Write-back (689) - --
Consumer Nigeria Plc. RC: 8726

11. 19. Share capital
Authorised
960,000,000 ordinary shares of 50k each
Called 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 reserve
At 1 January and 31 December (Note 11)
22. General reserve
At 1st January
Retained profit for the year
Dividend 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
4,210,374
1,578,144
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
5,218,471
2,326,484
6,830,728
Notes To The Financial Statements cont’d
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
unfundedprovisionsforthecostofcurrentlyaccruingbenefitsbasedoncurrentyearsalaries.
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
Administratorsonamonthlybasis.
42
The Group The Company
2010
N’000
2009
N’000
2009
N’000
18. Retirement benefits and
other related obligations
At 1 January
Charge for the year
Payments during the year
At 31 December
527,304
224,927
(290,350)
461,881
527,304
224,927
(290,350)
461,881
461,881
87,002
(199,106)
349,777
2010
N’000
461,881
87,002
(199,106)
349,777
The Group The Company
2010
N’000
2009
N’000
2010
N’000
2009
N’000
Consumer Nigeria Plc. RC: 8726
(717,526) (717,526)(574,021) (574,021)
3,299 3,299

12. Consumer Nigeria Plc. RC: 8726
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 89,185
373,050
59,444
265,353
_
63,099
5,000,217 4,080,447
The Group The Company
2010 2009
N'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
89,185
373,050
59,444
265,353
_
63,099
5,000,217 4,080,447
Notes To The Financial Statements cont’d
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 India
GSK Panama
Investment income (435,600)_ _ _

13. Consumer Nigeria Plc. RC: 8726
2010 2009
N'000 N'000
The Group
(ii) amount receivable from related parties
GSK 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 parties
Winster 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 2009
N'000 N'000
Notes To The Financial Statements cont’d
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. Royaltyandtechnicalaidfees
27. Contingentliability
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
computedat1%ofturnoverofthecategoryproductsforbothroyaltyagreementandtechnicalaidagreement.
The amounts due during the year amounted to N81.218m (2009: N100.786m) and N81.218m (2009:
N100.786m)forroyaltyfeeandtechnicalaidfeerespectively.
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
actionswillnotbematerial.
Certain prior year balances have been reclassified to enhance comparability with current period balances and
tomeetaccountingstandardsdisclosurerequirements.
- -
- -

14. 29. Directorsandemployees
Employees
Thenumberoffull-timepersonsemployedasat31December2010wasasfollows:
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 21
900,001 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 Number
2010 2009
45
Consumer Nigeria Plc. RC: 8726

15. 2010 2009
N'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'000
The 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 2009
1,000,001 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
Consumer Nigeria Plc. RC: 8726
46

16. Statement of Value Added
For 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
& Services
Local (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:
Employees
Salaries & Benefits 1,433,423 26.8 1,220,289 29.0 1,433,423 27.8 1,220,289 30.3
Provider of Funds
Dividend 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
Government
Taxation and Duties 909,491 17.0 767,767 18.3 824,744 16.0 712,197 17.7
The Future
Depreciation 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
2010
N’000
2009
N’000
T h e G r o u p T h e C o m p a n y
2010
N’000
2009
N’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.
Consumer Nigeria Plc. RC: 8726

17. Statement of Value Added
For 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
& Services
Local (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:
Employees
Salaries & Benefits 1,433,423 26.8 1,220,289 29.0 1,433,423 27.8 1,220,289 30.3
Provider of Funds
Dividend 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
Government
Taxation and Duties 909,491 17.0 767,767 18.3 824,744 16.0 712,197 17.7
The Future
Depreciation 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
2010
N’000
2009
N’000
T h e G r o u p T h e C o m p a n y
2010
N’000
2009
N’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.
Consumer Nigeria Plc. RC: 8726

18. Five Year Financial Summary
FIVE YEAR FINANCIAL SUMMARY FOR THE YEAR ENDED 31 DECEMBER 2010
Consumer Nigeria Plc. RC: 8726
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 2,568
Profit 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

19. Consumer Nigeria Plc. RC: 8726
4
Five Year Financial Trend
49
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