FrieslandCampina WAMCO declares profit despite blur economy at 44th AGM

Ben Langat, MD, FrieslandCampina WAMCO Nigeria PLC

At the 44th Annual General Meeting
of FrieslandCampina WAMCO Nigeria PLC,
Shareholders of the company unanimously approved its Annual Report and Accounts presented by the Board of Directors.
In a release specially signed by the
Corporate Affairs Director, Mrs. Ore Famurewa and obtained by Asabeafrika,
the company acknowledged a cheer mood after her Thursday May 18, 2017, at the Muson Center, Onikan, Lagos, as shareholders
acknowledged the efforts of the Board of Directors and Management for their
consistent performance despite the decline in economic activities and increased
pressure on the Naira
Operating results and performance


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The release stated that the company’s
commercial and financial performance remained satisfactory in spite of the
harsh business environment. Turnover increased by 2.5 percent from N120.72
billion in 2015 to N123.75 billion in 2016. Profit Before Tax (PBT) however
increased by 7.2 percent from N18.62 billion to N19.96 billion as a result of
the twin impact of the modest growth in turnover and significant reduction in
administrative costs.
Dividend 
The release further stated that the
shareholders approved the Board of Directors’ proposal of a total dividend
pay-out of 75 percent of the
Company’s PAT for the year under review, which is equivalent to N10.65 per N0.50 share. An interim dividend of N2.95 per N0.50 share was
paid in November 2016, and a final dividend of N7.70 per N0.50 share was
approved. 
Operations

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From left: The Managing Director, FrieslandCampina WAMCO Nigeria PLC,
Mr. Ben Langat; Chief Operating Officer, CPEMEA Royal FrieslandCampina, Mr.
Roel van Neerbos; Chairman, FrieslandCampina WAMCO Nigeria PLC, Mr Jacobs Ajekigbe;
and Chairman, Supervisory Board, Royal FrieslandCampina, The Netherlands, Mr.
Frans Keurentjes at the 44th Annual General Meeting of FrieslandCampina WAMCO
Nigeria PLC  held on May 18, 2017 in Lagos

According to the Chairman, Board of
Directors, Mr. Jacobs Moyo Ajekigbe, OFR,
“Though 2016 was a challenging year due
to the prevailing economic climate, which impacted on the cost of production,
raw and packaging materials sourcing; the Company recorded remarkable achievements
in operational efficiencies, cost management and improved productivity across
the supply chain systems with new investments in human capital development and
facility improvements”.
“The
Company made tremendous progress in its journey of continuous improvement in
quality, ensuring that the high quality of the Company’s products is maintained
throughout the value chain from grass to glass. This laudable pursuit of our
Company was given credence in the course of the year with the achievement of
Food Safety Systems Certification (FSSC) 22001”
he noted.
 The Company held its position in the
market during the year by raising the bar in distribution with extensive
distribution network and coverage of sales outlets, whilst also reinforcing
collaborative exchange with distributors to ensure continuous upgrade of their
capability and skill sets for business sustainability and stability. The
Company also created indirect employment for almost 1400 people via its route to market expansion.

The release stated that in 2016, FrieslandCampina WAMCO made significant
progress in the development of the dairy sector in Nigeria and in the process provided a source of sustained income to
almost 2000 farmers (including 900 women). One primary focus during the year
was to improve on the quality of raw milk obtained from our local suppliers and
this was achieved by putting in place an efficient quality improvement
programme. The programme involved extensive training of the Fulani milk producers at the herd levels
on how to hygienically handle and deliver quality raw milk to the milk
collection centers, with emphasis on thorough follow-up on the implementation
of quality procedures. 

Outlook 2017

From left: The Managing Director, FrieslandCampina WAMCO Nigeria PLC,
Mr. Ben Langat; Chief Operating Officer, CPEMEA Royal FrieslandCampina, Mr.
Roel van Neerbos; Chairman, FrieslandCampina WAMCO Nigeria PLC, Mr Jacobs Ajekigbe;
and Chairman, Supervisory Board, Royal FrieslandCampina, The Netherlands, Mr.
Frans Keurentjes at the 44th Annual General Meeting of FrieslandCampina WAMCO
Nigeria PLC  held on May 18, 2017 in Lagos

The board of the company under Mr. Langat further stressed that “The country’s real GDP growth is expected
to rebound slightly, by about 0.8 percent, in 2017; although inflation is
expected to increase marginally. Government is expected to adopt a number of
measures such as increased capital expenditure and increased funding of the
foreign exchange market to pull the economy out of recession, but the FMCG
market will continue to come under pressure”. 
“While
significant foreign exchange constraints, high inflation, milk price increase
and low consumer purchasing power are likely to negatively impact the Company’s
sales and profitability in 2017, we are confident that we will continue to
utilize our resources efficiently and manage our volumes and margins
judiciously to ensure a long term sustainable position”.

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