BY CHIOMA UMEHA
FrieslandCampina WAMCO Nigeria Plc announced a revenue growth of 35% for the fiscal year ending December 31, 2021.
Despite the challenging climate, the company revealed this during its 49th Annual General Meeting (AGM) in Lagos, where it reported a significant rise in volume and value over the previous year.
This includes increased competition and influx of substitute propositions. As a result, revenue grew by 35% from N199.5 billion in 2020 to N268.4 billion in 2021. From N19.4 billion in 2020 to N22 billion in 2021, operating profit increased by 13%. High finance costs as a result of the naira depreciation resulted in a 15% drop in earnings before tax from N14.9 billion in 2020 to N12.7 billion in 2021.
"We achieved tremendous progress in improving our business strategies in the year under review," stated Ben Langat, Managing Director, FrieslandCampina WAMCO Nigeria and Sub-Sahara Africa Cluster. We increased brand investments and improved physical availability.
"Our leading position was maintained and significant top-line growth was delivered thanks to a mix of strong brands, operational excellence, and an expanded route-to-market (RTM) distribution strategy." Similarly, significant initiatives such as collaboration on the Value4Dairy Consortium, investment in a new mobile yoghurt factory to scale up fresh milk processing, and expansion to new states have boosted our sustainable dairy development. All of these initiatives are geared toward delivering and accelerating backward integration of the dairy sector in Nigeria."
According to the company's dividend policy, the board of directors proposed a total dividend of N5.83 per share, which included an interim dividend of N1.10 per share paid in 2021 and a final cash dividend of N4.23 per share approved by shareholders at the AGM, as well as a one-for-one bonus share to be issued to existing shareholders.
"Our achievements in 2021 were the product of joint efforts by numerous stakeholders, and I would want to convey my gratitude to them for their valuable contributions," said Moyo Ajekigbe, the organization's chairman.
"The board recognizes the Management Team's impressive leadership, resilience, and professionalism in delivering the strong performance in 2021; and our highly valued employees at all levels." Despite the severe headwinds in our business environment, our Company was able to sustainably grow the business across the board.”
In terms of the company's 2022 prognosis, Ajekigbe stated that, despite the projected volatility and unpredictability in the business climate, the board and management are optimistic about the company's future and are committed to its success and sustainability.
"We are convinced that the Company's dairy brands, which are industry leaders, will continue to benefit from our optimized route-to-market." We will continue to pursue our backward integration and product diversification initiatives with vigour in order to ensure our company's long-term viability, he added.