Jonathan Eze

FrieslandCampina WAMCO Nigeria PLC makers of premium dairy products, Peak and Three Crowns milk brands held the company’s 45th Annual General Meeting yesterday at the Muson Centre, Onikan, Lagos.

During the year under review, the company recorded a 13.2 per cent increase in turnover from N123.75billion in 2016 to N140.08 billion in 2017. Profit before Tax (PBT) however, decreased by 20.6 per cent from N19.96billion to N15.86billion as a result of the fire incident that occurred in the evaporated milk factory.

In spite of the economic headwinds, the company increased investment to improve operational efficiency by procuring two new sterilizers, a conveyor, two high speed sachet filling machines with improved technology and a dust extractor system to optimise safety in the Powder Plant.

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 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.

In his statement to the media, regarding the company’s 2018 outlook, the Managing Director, Mr. Ben Langat explained that foreign exchange constraints, high inflation rate and low consumer purchasing power are likely to be some of the challenges this year.

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

“We 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.