Shareholders of Glaxo Smithkline Consumers Plc have approved the proposed dividend of N861.031 million by its Board of Director, representing 90 kobo per every 50 kobo share.

The approval was given at the company’s 40th Annual General Meeting (AGM) for its financial year ended 2010 held in Lagos

Chairman of GSK, Chief Olusegun Osunkeye said “despite the many challenges the company faced in 2010, the board and the management were able to chart a course of action that enabled us to achieve some level of success in our operating results”.

Osunkeye assured stakeholders of commitment from the Board and management of the company to the pursuit of goals and objectives that will place the company in a position that will continually deliver results.

Addressing investors request for constant bonus, he explained that increasing shares does not necessarily mean increasing profits, when share base is so large it dilutes the value, stating that since 1988 to 1996 the shareholding of the company has ballooned from 56 million to 800 million.

He said, “your comments that we have not been sharing bonus every year is a valid comment but what are the reasons behind it, if we were to be distributing our reserves into bonus shares.

You will probably be having a dividend of about two kobo on the wider base, that is the dilemma, we have to strike a balance”.

However, the company recorded a turnover of N16.863 billion, which represents 13 per cent increase compared to the previous year.

Its profit after tax and profit before tax stood at N3.371 billion and N2.461 billion respectively, representing 36 per cent and 45 per cent growth over the previous year.

According to him, “there has been a 19 per cent improvement in our first quarter 2011 turnover as against the first quarter 2010”.

“GSK globally, is a research and science base company, we spend approximately eight million pounds a day, which translates to over 300 billion pounds a year in research and developments and it is the result that you are seeing in our product pipeline, which makes us to say we have a strong product outline and also believes that the growth potentials goes on and on because of our research and development” he said.

Mr. Timothy Adeshiyan of Shareholders Solidarity Association, commended the company for the good result posted and its Corporate Social Responsibility for most people in the rural areas.

Adeshiyan said “we are happy with you for your innovative efforts also for what you are doing on research and development and your collaboration with National Agency for Food and Drugs Administration.”