FrieslandCampina WAMCO Nigeria PLC Posts N126.4billion Turnover at 42^nd Annual General Meeting

 

wamco's dairy product distributary truck about to move into the market at firms premises in lagos,Nigeria

FrieslandCampina WAMCO Nigeria PLC makers of premium dairy products: Peak, Three Crowns and Friso milk brands ^{recently held its annual general meeting in LAGOS,nIGERIA}.

The Company's commercial and financial performance remained satisfactory in spite of the harsh business environment. Turnover increased by 5.14 per cent from N120.26 billion in 2013 to N126.44 billion in 2014. Profit Before  Tax (PBT) however decreased by 14.55 per cent from N19.31  billion to N16.50 billion as a result of significant increase in the cost of dairy raw materials, which was not fully passed on to consumers; increased operating expenses; and the write-off of Export Expansion Grant already taken into profit in the previous year.

The Board of Directors recommended a final dividend of N4.33 per ordinary share of N0.50 each to the Shareholders having paid an interim dividend of N3.91 per N0.50 in November 2014. The Shareholders approved the final dividend during the Annual General Meeting bringing the total dividend paid out to N8.24 per N0.50 share in the year under review.

At the meeting, the Shareholders recognized the efforts of the Board of Directors and Management for their consistent performance despite the lull in economic activities and increased pressure on the business landscape. Accordingly, the Board of Directors acknowledged the efforts of the Management for its culture of continuous improvement in building capability, developing and expanding Company facilities, upgrading its maintenance systems and overall efficient use of resources over the years.

Outlook 2015

Considering the economic activities already playing out this year 2015, headwinds are expected from falling oil prices with its  impact on Government earnings and consumer spending, tighter monetary and fiscal policies which aim to boost revenue through higher receipts from income tax and a stronger performance from the private sector, devaluation of the Naira and rising inflation rate. It is therefore expected that the Nigerian business environment in 2015 will be challenging. 

The Company will however continue to invest in its brands, capabilities and people to ensure that it maintains its leadership position in the market.

FrieslandCampinaincreases its equity stake in FrieslandCampina WAMCO Nigeria PLC to nearly 68 percent

FrieslandCampina has increased its equity stake in its subsidiary FrieslandCampina WAMCO Nigeria PLC (“FrieslandCampina WAMCO”) from 54.58to 67.61 percent. It has acquired 13.03 percent of the shares for a total consideration of approximately 180 million euros.

CEO of Royal FrieslandCampina Roelof Joosten said: “The size of the market, the growth outlook and the commitment of the Nigerian people to bolstering the stability and economy of the country are the reasons why FrieslandCampina will continue to invest in its subsidiary FrieslandCampina WAMCO.”

FrieslandCampina WAMCO has beena key player in Nigeria since 1954. The Nigerian Peak brand is one of the key brands in FrieslandCampina’s portfolio and enjoys iconic status in Nigeria. FrieslandCampinaWAMCO Nigeriaproduces, packages, markets and distributes a large variety of dairy products and is a major force in fast-moving consumer goods in Nigeria. BesidesPeak, its leading brands are Three Crowns and Friso.With this transaction FrieslandCampina demonstrates its commitment to Nigeria and to its dairy market.

Under the terms of the transaction which was executed on the NASD OTC trading platform, FrieslandCampina has acquired127,184,030ordinary shares in FrieslandCampina WAMCO at NGN315.67 per share.

The Securities and Exchange Commissionof Nigeria has been informedof the transaction.

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Royal FrieslandCampina

Every day Royal FrieslandCampina provides around 1 billion consumers all over the world with food that is rich in valuable nutrients. With annual revenue of 11.3 billion euro FrieslandCampina is one of the world’s five largest dairy companies.

FrieslandCampina supplies consumer products such as dairy-based beverages, infant nutrition, cheese and desserts in many European countries, in Asia and in Africa. Products are also supplied to professional customers, including cream and butter products to bakeries and catering companies. FrieslandCampina also supplies ingredients and half-finished products to manufacturers of infant nutrition, the food industry and the pharmaceutical sector around the world.

FrieslandCampina has offices in 32 countries and employs a total of about 22,000 people. FrieslandCampina’s products find their way to more than 100 countries. The Company’s central office is in Amersfoort. FrieslandCampina’s activities are divided into four market-oriented business groups: Consumer Products Europe, Middle East & Africa; Consumer Products Asia; Cheese, Butter &Milkpowder and Ingredients. The Company is fully owned by Zuivelcoöperatie FrieslandCampina U.A., with over 19,000 member dairy farmers in the Netherlands, Germany and Belgium, one of the world’s largest dairy cooperatives. For more information please visit: www.frieslandcampina.com.

About FrieslandCampina WAMCO Nigeria

FrieslandCampina WAMCO Nigeria PLC has been a necessary part of most Nigerian homes since 1954 through its iconic brand Peak Milk. Our Company is a multinational manufacturing company and an affiliate of Royal FrieslandCampina of The Netherlands, one of the largest dairy cooperative in the world. We are the makers of Peak, Three Crowns and Friso brands of milk in Nigeria. Over the years, FrieslandCampina WAMCO has maintained leadership of the Evaporated milk market with its Peak brand. Guided by an inspiring mission, Nourishing Nigeria with quality dairy nutrition, we are unwavering in the provision of quality, nutritious milk products to Nigerians.

To further increase its local content and support Federal Government’s initiative to grow the Agriculture sector, FrieslandCampina WAMCO pioneered the Dairy Development Program (DDP) in August 2010. This is gradually developing into a full national program as the Company is dedicated to making the initiative a success by ensuring the transfer of Technology Know-How on milk production to Nigerian farmers. The Company plans to further train and consult with farmers, with the support of the Government.

FrieslandCampina WAMCO Nigeria PLC will maintain its No. 1 position as the nation’s leading milk manufacturing Company by investing in its people, capacity expansion projects and by being an excellent corporate citizen.

About Royal FrieslandCampina

Every day Royal FrieslandCampina provides millions of consumers all over the world with food that is rich in valuable nutrients. With annual revenue of 11.3 billion euros, FrieslandCampina is one of the world’s five largest dairy companies, supplying consumer and professional products, as well as ingredients and half-finished products to manufacturers of infant & toddler nutrition, the food industry and the pharmaceutical sector around the world. FrieslandCampina has offices in 32 countries and almost 22,000 employees, and its products are available in more than 100 countries. The Company is fully owned by Zuivelcoöperatie FrieslandCampina U.A, with 19,487 member dairy farmers in the Netherlands, Germany and Belgium—making it one of the world’s largest dairy cooperatives.

For more information please visit: www.frieslandcampina.com.

FrieslandCampina WAMCO Nigeria continues to show strong commitment in Nigeria.

Key strides to highlight this include:

-          40 billion Naira increase in equity

-          Partnership with 650 local dairy farmers to increase local dairy production

-          Declared N126.44 billion Turn Over in 2014

The Dairy Development Programme is enabling dairy farmers to run their businesses optimally and bring dairy production to a higher volume and quality. To ensure this, we train and continuously retrain farmers on topics ranging from raw milk hygiene, raw milk quality, financial education and benefits of using the banking system, animal health, tsetse control. Over 650 registered Fulani milk producers in Fasola, Alaga, Maya and Iseyin all in Oyo state benefited in learning. These farmers were also trained on how to manage small holder dairy farming system, feeding and feed conservation/zero grazing, calf rearing and on benefits of artificial insemination and improved pasture development. The trainings were conducted together with DDP core-partners: International Fertilizer Development Centre and Agriculture Development (IFDC) and Federal Ministry of Agriculture and Rural Development (FMARD). Specifically, ten farmers were trained in conjunction with the Federal Ministry of Agriculture and Rural Development on how to carry out artificial insemination. One of the farmers went further for two months training on same topic at the National Animal Production and Research Institute (NAPRI) at Zaria Kaduna state. Also, ten technicians and cooling tanks operators were trained in conjunction with Mueller (Cooling tank manufacturing company) and IFDC on cooling systems maintenance and trouble shooting. One hundred non Fulani potential milk suppliers were also selected registered and trained on the various aspects of small holder dairy farming system and are currently being encouraged to start small holder dairy farming. Other ways in which FrieslandCampina WAMCO enables the dairy farmers include:

Demonstration Plots on Improved Pasture Development Five demonstration plots were developed in collaboration with Advanta (a foremost forage cultivation company. Farmers were practically trained on improved pasture cultivation and management. The improved pastures were introduced to further boost milk yield per cow. Cross Breeding Programme About 100 cows were crossbred in Oyo, IyaIbeji, Maya and Abeokuta, in collaboration with Federal University of Agriculture Abeokuta (FUNAAB) Abeokuta Ogun state. Physical Infrastructures Apart from two Milk Collection Centres (MCCs) that are in operation in Fasola and Alaga, two additional MCCs in Maya and Iseyin as well as Milk Bulking Centre (MBC) in Iseyin were constructed and equipped with modern dairy equipment.  Milk collection activities have commenced in the new centres. A new insulated milk truck was also procured to further enhance efficient milk transportation from the MCCs to the factory in Lagos. Breeding/ Training Centre Twenty hectares of land was secured in Maya for the purpose of training and demonstration of good dairy farming system. The centre is also being planned for breeding activities for cows. Other Extension Services Free veterinary and other dairy technical consultation services are being provided to the farmers. We also facilitate their link to reputable input suppliers where they procure genuine drugs, dairy ration, salt licks and other needed inputs. 50% subsidized dairy ration and mineral licks were made available to the farmers through the Federal Government Growth Enhancement Scheme (GES) programme. Twenty lactometers- one of the instruments to assess the quality of milk - was distributed free to representatives of Fulani milk producers and milk cans were also distributed free to farmers in the improve milk quality.