FrieslandCampina WAMCO increases turnover as profits drop 20.6%

By Jim Cornall contact

- Last updated on GMT

Foreign exchange constraints, a high inflation rate and low consumer purchasing power are likely to be some of the challenges in the upcoming year, according to the company's managing director.
Foreign exchange constraints, a high inflation rate and low consumer purchasing power are likely to be some of the challenges in the upcoming year, according to the company's managing director.

Related tags: Frieslandcampina, Food, Nigeria

FrieslandCampina WAMCO Nigeria PLC, makers of the Peak and Three Crowns milk brands held the company’s 45th annual general meeting on Thursday, May 17 in Lagos.

During the year under review, the company said it recorded a 13.2% increase in turnover from N123.75bn ($343.3m) in 2016 to N140.08bn ($388.6m) in 2017.

Profit before tax (PBT), however, decreased by 20.6% from N19.96bn ($55.4m) to N15.86bn ($44m), which the company attributed to a fire at its 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 optimize safety in the powder plant.

Farming programs

FrieslandCampina WAMCO made 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 in the Netherlands.

Managing director, Ben Langat, said foreign exchange constraints, a high inflation rate and low consumer purchasing power are likely to be some of the challenges in the upcoming year. 

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

“FrieslandCampina WAMCO 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.”

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