FrieslandCampina WAMCO makes new investments as revenue rises

FrieslandCampina WAMCO Nigeria Plc, makers of Peak and Three Crowns milk brands, has procured two new sterilizers, a conveyor, two high-speed sachet filling machines with improved technology and a dust extractor system to optimise safety in its powder plant.

At the dairy firm’s 45th Annual General Meeting held in Lagos, the company announced a 13.2 percent increase in turnover in the year ending 2017, from N123.75billion in 2016 to N140.08billion.

Profit Before Tax (PBT), however, declined by 20.6 percent, from N19.96billion to N15.86billion as a result of the fire incident that occurred in the evaporated milk factory, a statement signed by Ore Famurewa, corporate affairs director, says.

The company said although 2017 was in many ways a challenging business year, the manufacturer showed resilience and determination to meet its targets and thrive amidst a difficult operating environment.

“FrieslandCampina WAMCO made significant investments in its Dairy Development Programme to increase opportunities in local dairy farming. The company invested in an additional milk collection centre, and started the Farmer2Farmer programme to help improve milk quality, volume and dairy farming skills through one-on-one coaching by Dutch co-operative member-farmers from Royal FrieslandCampina, The Netherlands,” the statement says.

It was gathered that shareholders approved a final dividend of N7.02 per ordinary share of N0.50 each (having paid an interim dividend of N2.20 per N0.50 in October 2017), bringing the total dividend paid out to N9.22 per N0.50 share in the year under review.

The statement quoted Ben Langat, managing director of the company, projecting that foreign exchange constraints, high inflation rate and low consumer purchasing power were likely to be some of the challenges this year.

 “We expect consumers to maintain their current spending behaviour of top-up neighbourhood shopping, particularly for milk. Availability and affordability will remain major determining factors in purchase decision making.

“FrieslandCampina WAMCO will continue to work within best global practices, leverage opportunities to invest and continue to satisfy our consumers as we maintain our leadership position in the dairy sector” Langat said.

 ODINAKA ANUDU