FrieslandCampina WAMCO Reports N199.5 Billion Turnover in 2020

By Vanessa Obioha

A top diary company, FrieslandCampina WAMCO Nigeria PLC, has reported a turnover of N199.5 billion in 2020.

Speaking at the 48th annual general meeting of the firm Thursday, the Chairman, Mr. Moyo Ajekigbe, said the company’s commercial and financial performance for the year showed considerable improvement compared to the previous year, despite the challenges presented by the pandemic.

“Turnover increased by 23 per cent in 2020 to N199.5 billion from N161.8 billion in 2019. This was due to a combined effect of organic and inorganic growth following the acquisition of Nutricima’s dairy business. Profit Before Tax however decreased by 20.3 per cent from N18.8 billion in 2019 to N14.9 billion in 2020 as a result of high input costs and naira devaluation impact,” he said.

Following its expansion drive, FrieslandCampina WAMCO acquired Nutricima factory in Ikorodu during the year under review. The acquisition underlines the dairy company’s continued commitment to contribute to the development of the Nigerian dairy sector and satisfies the need for additional production capacity for it to meet the growing consumer demand for locally produced dairy.

Under its backward integration strategy, the business aggressively expanded its activities to strengthen the dairy value chain in Nigeria. Significant to this was the establishment of the Centre for Nigerian Dutch Dairy Development, Nigeria’s first national expertise centre for dairy, committed to unlocking and developing homegrown dairy expertise across the value chain. The business also established the Value4Dairy Consortium, a formidable partnership of FrieslandCampina WAMCO, URUS, Barenbrug and Agrifirm, committed to accelerate self-sufficiency in Nigeria’s dairy sector.

During his presentation on the financial results, the Managing Director, Mr. Ben Langat, underlined that 2020 was shaped by the company’s continued focus on sustainable business processes.

“We leveraged our brands and superior commercial expertise to deliver impressive volumes during the year. FrieslandCampina WAMCO continues to be committed to nourishing Nigerians with quality dairy nutrition. Our board and management will continue to take necessary steps to ensure that the growth momentum is sustained.

“From the very first signs of the COVID-19 pandemic, our company defined three absolute priorities: protecting the health and safety of our employees; doing all that is necessary to ensure business continuity; and supporting Nigeria to manage through the crisis. Therefore, a donation of N500 million was made to the COVID Relief Fund while over N100 million worth of products were donated to low income communities during the lockdown,” Langat said.

The meeting was broadcast live for shareholders and other relevant stakeholders to participate in the proceedings in line with the “Guidelines on Holding of Annual General Meetings (AGM) of Public Companies Using Proxies” as established by the Corporate Affairs Commission.

Also, all the resolutions submitted for shareholders’ approval were adopted, including the approval of a total dividend payout of N6.74 per N0.50 share.

A look at the company’s Q1 2021 activities indicates continued economic headwinds in a volatile and uncertain business environment.

However, FrieslandCampina WAMCO remains positive about the future of its business in Nigeria. It is confident that its brands, which are well known, will continue to grow on the back of strong business fundamentals and unique route-to-market strategy to achieve its business ambition.