FrieslandCampina WAMCO makers of premium dairy products Peak, Three Crowns and Friso milk brands announced N126 billion turnover to its shareholders at its 42nd Annual General Meeting held Tuesday May 19, 2015 at the Muson Centre, Onikan, Lagos.
The Company’s commercial and financial performance remained satisfactory in spite of the harsh business environment. Turnover increased by 5.14 per cent from N120.26 billion in 2013 to N126.44 billion in 2014. Profit Before Tax (PBT) however decreased by 14.55 per cent from N19.31 billion to N16.50 billion as a result of significant increase in the cost of dairy raw materials, which was not fully passed on to consumers; increased operating expenses; and the write-off of Export Expansion Grant already taken into profit in the previous year.
The Board of Directors recommended a final dividend of N4.33 per ordinary share of N0.50 each to the Shareholders having paid an interim dividend of N3.91 per N0.50 in November 2014. The Shareholders approved the final dividend during the Annual General Meeting bringing the total dividend paid out to N8.24 per N0.50 share in the year under review.
At the meeting, the Shareholders recognized the efforts of the Board of Directors and Management for their consistent performance despite the lull in economic activities and increased pressure on the business landscape. Accordingly, the Board of Directors acknowledged the efforts of the Management for its culture of continuous improvement in building capability, developing and expanding Company facilities, upgrading its maintenance systems and overall efficient use of resources over the years.
In a media statement issued same day by its Corporate Affairs Director, Ore Famurewa, the company observed that falling oil prices will impact government earnings and consumer spending and there would be tighter monetary and fiscal policies.
“It is therefore expected that the Nigerian business environment in 2015 will be challenging. Our company will however continue to invest in its brands, capabilities and people to ensure that we maintain our leadership position in the market” she said.