FrieslandCampina WAMCO Nigeria Plc has announced its 2017 financial results, at the company’s Annual General Meeting (AGM) held in Lagos.
The company revealed that full-year sales grew 13.2% to ₦140 billion from ₦123.75 billion in 2016 also the net profit declined by 13.5% to ₦12 billion from ₦13.8 billion in 2016.
The company pioneered the manufacture of evaporated milk and the introduction of fortified milk-based products into the Nigerian market and a large market share driven by its key brands, namely Peak and Three Crowns.
Challenges during the year.
The company attributed the 13.5% drop in its net profit to a fire incident at their Evaporated milk factory in 2017 which reduced its production and required the company to import high volume of Evaporated milk to cushion the gap from the resulting fire incident.
The company also noted that it imported ₦96.7 billion worth of dairy raw materials, while ₦16.2 billion or 16.7% was procured locally due to the challenges it faced during the year.
Mr. Ben Langa, Managing Director of the Company explained that foreign exchange constraints, high inflation rate, and low consumer purchasing power are some of the challenges the company may face this year.
In his words:
“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.”
FrieslandCampina WAMCO Nigeria PLC was incorporated in April 1973 as West Africa Milk Company Nigeria (WAMCO) and commenced operations in 1975.
The company is an affiliate of Royal FrieslandCampina of The Netherlands, one of the largest dairy producers in the world.
In 2015, FrieslandCampina increased its equity stake in its Nigeria subsidiary WAMCO Nigeria PLC (“FrieslandCampina WAMCO”) from 54.58 percent to 67.61 percent.