Speaking at the company’s 45th Annual General Meeting held yesterday, May 17, in Lagos, the Managing Director, Ben Langat explained that though 2017 was a challenging business year, the company showed resilience and determination to meet its targets and thrive amidst a difficult operating environment.
During the year under review, the company recorded a 13.2 percent increase in turnover from N123.75billion in 2016 to N140.08billion in 2017. Proﬁt before tax (PBT) however decreased by 20.6 percent from N19.96billion to N15.86billion as a result of the ﬁre incident that occurred in the evaporated milk factory.
In spite of the economic headwinds, the company increased investment to improve operational efficiency, and boosted its Dairy Development Programme to increase opportunities in local dairy farming by investing in an additional milk collection centre and introducing the Farmer2Farmer programme to help improve milk quality, volume and dairy farming skills through one-on-one coaching by Dutch co-operative member-farmers from Royal FrieslandCampina.
The Shareholders were generally impressed with the company’s performance and business strategy.
In 2018, we expect consumers to maintain their current spending behaviour of top-up neighborhood shopping, particularly for milk. Availability and affordability will remain major determining factors in purchase decision making.