WAMCO posts N18.6b profit

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FrieslandCampina WAMCO Nigeria Plc makers of dairy products, Peak, Three Crowns and Friso milk, at its 43rd Annual General Meeting in Lagos, said it recorded a turnover of N120.72 billion.

A statement issued by the Corporate Affairs Director, Ore Famurewa said the annual report and accounts were approved by the company’s shareholders with a dividend payout of N13.73 per N0.50 share. Other proposals of the Board of Directors were also approved with a strong majority.

The commercial and financial performance remained satisfactory in spite of the harsh business environment. Turnover had decreased by 4.5 per cent from N126.44 billion in 2014 to N120.72billion in 2015. Profit before tax (PBT) however increased by 13.3 per cent from N16.50 billion to N18.60 billion as a result of the significant reduction in the cost of sales despite increased operating and finance costs.

The Board of Directors proposed a total dividend payout of 100 per cent of the Company’s profit after tax (PAT) for the year under review, which is equivalent to N13.73 per N0.50 share. An interim dividend of N3.96 per N0.50 share was paid in November 2015; and final dividend of N9.77 per N0.50 share was approved by Shareholders.

The Chairman, Board of Directors, Mr. Jacob Moyo Ajekigbe, said: “The company improved its operational efficiency in production by upgrading all of its manufacturing equipment in order to produce better and higher quality products and optimize cost of production. Its key focus on several investments generated cost savings and reduced energy use and carbon footprint.

“During the year, the company’s pedigree in maintaining excellence was further advanced as it took the initiative to train its Key Business Partners on Best-in-Class quality assurance standards to safeguard the high quality of the company’s products throughout the value chain, from grass to glass, which in turn led to waste reduction.”

In spite of the daunting economic environment in 2015, FrieslandCampina WAMCO continued to take steps aimed at strengthening its leadership position in the dairy market and keeping with its mission of providing quality dairy nutrition, bearing in mind the pressure on consumers’ wallet. The company launched a series of ‘Low Unit Price Packs (LUPP)’ priced at pocket friendly price points of N10 to N50.

The company noted that the country’s GDP growth is expected to rebound in 2016, though rather slowly, should recover if the right mix of fiscal and monetary policies is put in place to stimulate the economy and attract domestic and foreign investments. However, due to significant foreign exchange constraints, combined with weak consumer sentiment, the sales and profitability of the Company will be significantly impacted in 2016.

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