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.