News Dairy
FrieslandCampina is making money again in Nigeria
End of last month, FrieslandCampina already reported the half-year figures of the entire group, which were better than many had expected. The Nigerian subsidiary Wamco is also back in the black, as recent figures published for the second quarter show. The company then wrote black figures again, after having to incur quite substantial losses in the two previous quarters.
At the bottom line, Wamco recorded a profit of 8.5 billion Nigerian Naira, which is equivalent to about €4.75 million at current exchange rates. However, there is still a loss visible for the entire first half of 2024, amounting to about €700,000. This is due to disappointing figures in the first quarter.
In an explanation, the company mentions challenging market conditions due to inflationary pressure, combined with weak economic conditions in the country. Nevertheless, Wamco, as a self-proclaimed provider of premium dairy products, managed to increase sales volumes.
Significantly Higher Revenue
This is also evident from the revenue, which increased by a whopping 62% in the last quarter to €71 million, although there is likely some inflationary pressure included. The temporary recovery of the troubled currency Naira also helped a bit. Meanwhile, the currency has weakened significantly again. Cost-cutting measures have been implemented, contributing to the profit. Although the figures for the first half of 2024 were still negative, Wamco expresses confidence in achieving sustainable profitability.
During an explanation of the half-year figures of FrieslandCampina, CEO Jan Derck van Karnebeek already hinted that things are improving in Nigeria and Pakistan. The second quarter figures of the participation in FrieslandCampina Engro Pakistan Limited have not yet been published.
