GlaxoSmithKline interim dividend at 33%

Our Corporate Bureau
31 July 2002

Mumbai: The board of directors of GlaxoSmithKIine Consumer Healthcare (GSKCH) has announced the first interim dividend of 33 per cent (or Rs 3.30 per share) for the year 2002.

Despite tough business conditions, the dividend has been declared in line with the companys tradition of rewarding its shareholders through consistent dividend allocation. The economic environment continues to remain adverse with the ongoing demand recession severely affecting the fast-moving consumer goods sector.

Against this backdrop, for the half year ended 30 June 2002, GSKCH registered a 15.4-per cent decline in sales, at Rs 398.59 crore, over the corresponding period last year. The profit before tax during the half year was Rs 76.01 crore, reflecting a decline of 19.6 per cent over the last years corresponding first half.

GSKCH chairman and managing director Simon J Scarff says: Our strategy to meet the challenges posed by the demand recession has been to continuously focus on consolidation and augmentation of market share, cost reengineering, management of working capital and curtailment of risk exposure to the business.

GSKCHs inventories have reduced considerably during the half yearly period ended June 2002 as compared to the same period last year. Commercial production commenced in July 2002 at the recently inaugurated state-of-the-art Sonepat plant.

The capacity realisation of the plant, however, is not expected to be high during the current year in view of the tough business conditions. The Sonepat plant will continue to play a lead role in the long-term manufacturing strategy for the company both for the Indian market and for abroad, says Scarff.