At the 44th Annual General Meeting of FrieslandCampina WAMCO Nigeria PLC on Thursday May 18, 2017, at the Muson Center, Onikan, Lagos, shareholders acknowledged the consistent positive performance of the company in spite of the harsh business environment and increased pressure on the Naira.
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WAMCO’s 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.
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.
According to the Chairman, Board of Directors, Mr. Jacobs 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 said.
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.
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 centres, with emphasis on thorough follow-up on the implementation of quality procedures.
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.
COVER PHOTO: 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[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]