FrieslandCampina WAMCO records N268.4bn turnover for 2021

Dutch dairy company, FrieslandCampina WAMCO Nigeria has announced a turnover of N268.4 billion for the financial year ended Dec. 31, 2021.

Ben Langat, Managing Director, FrieslandCampina WAMCO Nigeria Plc and Sub-Saharan Africa Cluster, said that the turnover represented an increase of 35 percent from N199.5 billion in 2020.

Langat said this during the 49th Annual General Meeting of the company, according to a statement by Ore Famurewa, Executive Director, Corporate Affairs of the company, on Tuesday in Lagos.

He said that the company’s operating profit increased by 13 percent from N19.4 billion in 2020 to N22 billion in 2021.

Langat, however, said that profit before tax declined from N14.9 billion in 2020 to N12.7 billion in 2021, due to high finance costs arising from naira devaluation.

The shareholders unanimously approved a total dividend payout of N5.83 per N0.50 ordinary share, having paid an interim dividend of N1.10 in 2021, and a final cash dividend of N4.23 per share.

They also approved a bonus share to be issued to existing shareholders on a one-for-one basis.

“In the year under review, we made excellent progress in strengthening our business strategies. We scaled up investments in brands and optimized physical availability.”

“The combination of solid brands, operational excellence, and expanded route-to-market (RTM) distribution strategy sustained our leadership position and delivered significant top-line growth,” Langat said.

According to him, the company’s sustainable dairy development received a boost through initiatives, including collaboration on the Value4Dairy Consortium and investment in a new mobile yoghurt factory to scale up fresh milk processing.

He added that expansion to new states is all modeled towards delivering and accelerating backward integration of the dairy sector in Nigeria.

Speaking on the company’s business outlook for 2022, Langat said irrespective of the expected volatility and uncertainty of the business environment, the Board and management of FrieslandCampina WAMCO remain confident about the company’s future.

He reaffirmed their commitment to its success and sustainability, expressing confidence that the company’s brands would continue to leverage its optimized route-to-market.

Langat said that the firm would continue to aggressively pursue its backward integration and product diversification strategies to ensure the long-term sustainability of its business.