Friesland shareholders approve N6.74 per share dividend

… Records N199.5bn turnover

By Peter Egwuatu

Shareholders of  FrieslandCampina WAMCO Nigeria Plc, makers of premium milk brands – Peak, Three Crowns, Coast, Nunu and Olympic have approved a dividend of N6.74 per N0.50 share for the financial year 2020.

The shareholders at its 48th Annual General Meeting , AGM ,held in Lagos also adopted all the resolutions submitted to them by Board of Directors.

Speaking at the AGM, the Chairman, Mr. Moyo Ajekigbe, said: “The challenging operating environment in 2020 notwithstanding, the Company’s commercial and financial performance for the year showed considerable improvement compared to the previous year. 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% from N18.8 billion in 2019 to N14.9 billion in 2020 as a result of high input costs and naira devaluation impact.”

As underlined by the Managing Director, Mr. Ben Langat, during his presentation on the financial results, “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.”

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Explaining the Company’s response to COVID, Mr. Langat said, “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.”

Commenting on growth and business Outlook 2021, he said: “Following its expansion drive, FrieslandCampina WAMCO acquired Nutricima factory in Ikorodu during the year under review. The acquisition underlines FrieslandCampina WAMCO’s continued commitment to contribute to the development of the Nigerian dairy sector and satisfies the need for additional production capacity for FrieslandCampina WAMCO 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 Center for Nigerian Dutch Dairy Development,  Nigeria’s first national expertise Center 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” he stated.

Continuing, the Chairman said:” A look at 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. The business is confident that our brands, which are well known, will continue to grow on the back of our strong business fundamentals and unique route-to- market strategy to achieve our business ambition.”

Vanguard News Nigeria

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