Friesland Campina WAMCO Nigeria Plc, an affiliate of Royal Friesland Campina in the Netherlands and one of the largest dairy cooperatives in the world, achieved a revenue increase of 23 percent in 2020 amid disruptions and challenges in the business environment.
This was announced at its 48th Annual General Meeting held recently in Lagos, where Moyo Ajekigbe, Chairman, Board of Directors, Frieslandcampina Nigeria said despite the challenging operating environment in 2020, the Company’s commercial and financial performance for the year showed considerable improvement compared to the previous year.
This he said was due to a combined effect of organic and inorganic growth following the acquisition of Nutricima’s dairy business.
“The company’s revenue increased by 23percent in 2020 to N199.5billion from N161.8billion in 2019, however its profit before tax decreased by 20.3 percent moving from N18.8 billion in 2019 to N14.9 billion in 2020 as a result of high input costs and the impact of Naira devaluation,” he explained.
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Following the increase in revenue, a dividend payout of N6.74 per N0.50 share was approved during the meeting.
Ben Langat, Managing Director while speaking on the company’s performance said despite the headwinds, 2020 was shaped by the Company’s continued focus on sustainable business processes, while putting customer satisfaction and quality at the fore.
“We leveraged our brands and superior commercial expertise to deliver impressive volumes during the year, our Board and Management will continue to take necessary steps to ensure that the growth momentum is sustained,” he said. Giving an outlook for 2021, Langat said “A look at first quarter of 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, as the brands continue to grow on the back of strong business fundamentals and unique route-to-market strategies” He said.
Highlighting the firm’s successful moments during the year under review, the MD noted the establishment of the Center for Nigerian Dutch Dairy Development, Nigeria’s first national expertise Center for dairy, committed to boosting homegrown dairy expertise across the value chain.
Furthermore was the establishment of the Value4Dairy Consortium, consisting of a partnership between Frieslandcampina, URUS, Barenbrug and Agrifirm, committed to accelerate self-sufficiency in Nigeria’s dairy sector.
Langat also highlighted major activities of the company in response to the COVID-19 outbreak which includes a donation of N500 million made to the COVID-19 Relief Fund and over N100 million worth of products donated to low income communities during the lockdown.
