Home Business FrieslandCampina WAMCO declares N324.7 Billion Revenue at 50th AGM, Records 21% Growth in 2022

FrieslandCampina WAMCO declares N324.7 Billion Revenue at 50th AGM, Records 21% Growth in 2022

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FrieslandCampina WAMCO Nigeria PLC, the nation’s foremost dairy organization and

makers of Peak, Three Crowns, Coast, Olympic and Nunu milk brands has reported a

turnover of N324.7 billion for the financial year ended 31 December 2022. This was

announced at its 50th Annual General Meeting, which held on Tuesday, 9 May 2023 at the

Sheraton Hotel, Lagos.

Operating Results and Performance

The Company recorded a growth in net sales due to a focus on revenue growth

management. However, there was a drop in volume which was mainly a result of high

inflation and a reduction in the overall consumer purchasing power. Turnover increased

by 21% from N268.4 billion in 2021 to N324.7 billion in 2022. Profit Before Tax (PBT)

increased by 6% from N12.7 billion in 2021 to N13.5 billion in 2022 due to lower finance

costs and cost management measures.

Ben Langat, Managing Director FrieslandCampina WAMCO Nigeria PLC

“To mitigate the extremely difficult global economic challenges coupled with

unprecedented inflationary pressures witnessed in 2022, we upscaled our commercial

execution with relentless focus on Revenue Growth Management and redistribution

initiatives to stay agile and competitive. We made investments in our brands via diverse

initiatives, optimizing market spend with an increased focus on physical availability.

Leveraging our strong brands and superior commercial expertise has helped to sustain

our leadership position and deliver significant top-line growth.

“Aside the afore-mentioned metrics, I am proud of several achievements in the year

under review that supported our stability and performance. These include but are not

limited to the launch of Peak Yoghurt 1L pack and successful brand activations like the

annual Three Crowns mum of the year campaign. We also introduced Nunu yoghurt,

Nigeria’s first drinking yoghurt made from 100% locally sourced milk and produced in a

unique mobile factory, also the first of its kind in Nigeria. This is yet another success

recorded in the actualization of our sustainability and backward integration plans in

support of the dairy development policy of the Federal Government of Nigeria. Several

awards and recognitions were also received for the Company’s excellence in marketing,

safety, quality and manufacturing. These external (and global) recognitions are a

validation of our operational excellence and continuous improvement culture in the face

of the tough business climate.

“We will continue to innovate and drive accessibility to our portfolio by incorporating

more local content to drive more competitiveness in the market. We remain committed

to delivering quality, affordable and accessible nutrition to millions of Nigerian homes and

to building a more productive and sustainable future in Nigeria.”

Moyo Ajekigbe, OFR, Chairman, Board of Directors

“The success achieved in 2022 was the result of concerted efforts from various

stakeholders, and I would like to thank the Management Team for their focused

leadership, hard work and resilience; and my colleagues on the Board for their valuable

insights, counsel and teamwork during the last financial year.

“Special acknowledgement goes to our consumers who have remained consistent as they

make their decisions to buy and consume our products on a daily basis, and to our

customers for their confidence in our products and the Company. I would also like to

thank our employees for their passion, hard work and dedication to duty. We continue to

owe our Corporate Head Office a debt of gratitude for their solid support and for their

confidence in Nigeria as an investment destination.

“Following the retirement of Rev. Isaac Agoye and Mr. Robert Steetskamp from the Board

after the last Annual General Meeting, Mrs. Audrey Joe-Ezigbo was appointed as an

Independent Non-Executive Director on 1st December 2022. We welcome Mrs. Audrey

Joe- Ezigbo to our Company and look forward to her valuable contributions.

“In accordance with the Company’s dividend policy, the Board of Directors proposed a

total dividend payout of N2.93 per N 0.50 ordinary share. No interim dividend was paid in

2022 and a final cash dividend payout of N2.93 per N 0.50 share was approved by the

shareholders at the Annual General Meeting.”

Business Outlook 2023

According to economic analysts, the business environment is expected to remain volatile

with rising unemployment, high inflation, high interest rate, insecurity and high exchange

rate. However, despite the expected difficulties and challenges in the business environment,

the Board and Management remain confident about the future of Nigeria and will

continue to invest in the country. We strongly believe that our Company’s brands, which

are leaders in the dairy sector will continue to grow on the back of innovation and our

robust route-to-market. We will pursue our backward integration and portfolio

diversification strategies with renewed energy for continued prosperity and long-terms sustainability of our business.

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