FrieslandCampina WAMCO Nigeria Plc, a leading company in the dairy sector and makers of such products as Peak milk, Three Crown, Friso, among others is poised to inject at least N4bn (€20 million) into their operation in the country to maintain their lead position in the dairy market.
The company, which is investing the money to upgrade their facilities to international standards and help to achieve minimum national adequate consumption of milk products, is also set to unveil a new campaign in Lagos on Saturday May 23rd to celebrate the 60th Anniversary of Peak milk.
Speaking during a media parley at its corporate Headquarters in Ikeja, the company’s Managing Director, Mr. Rahul Colaco, said the company has fully incorporated social responsibility into its operational strategy and is making effort to help provide nourishment for millions of poor children in the country.
Colaco, also said that his company has switched its power source totally from diesel to gas, which is more environmentally friendly.
He noted that the company has invested in milk tankers and wants to contribute to ensuring fresh local milk in Nigeria.
He added that the company is investing in Nigeria to stimulate the market and thereby, the economy. He noted that sustainability in the dairy products sector is central to the country’s overall economic growth.
Colaco disclosed that the company’s operation in Nigeria has been in existence for 42 years. He added that 90 percent of the raw materials they use are sourced locally, which has helped mitigate against exchange rate fluctuations.
In addition, he said that “milk is much more nourishing to human health and we have embraced the challenge in helping malnourished and poor children to overcome their problems. There is a need to develop more sufficiency in milk provision, but there is also the need to achieve a good and delicate balance because of its perishability.”
He revealed that it took his native country, India, 30 years to achieve self-sufficiency in dairy production through the White Revolution. But he admitted that there is no time-line to achieve same in Nigeria, due to different unique factors, including feed the cows, which makes a big difference in their milk production.
On the 14.55 percent lower quarterly profits his company posted, from N19.31 bn to N16.50 bn in 2014, “this was because of significant increase in the cost of dairy raw materials, which was not fully passed on to the consumer; increased operational expenses, and the write-off of export expansion grant already taken into profit in the previous year.”
However, he noted that the company, which has over 27 products in its stable, had an increase in turnover by 5.14 percent from N120.26 bn in 2013 to n126.44 bn in 2014.
Furthermore, the Board of Directors recommended a final dividend of 4.33 per ordinary share of 0.50 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.