News milk
FrieslandCampina suffers significant losses in Nigeria
The Nigerian WAMCO, a subsidiary of FrieslandCampina, has suffered a record loss in the first quarter of this year. This is the result of an accumulation of economic problems in the West African country.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
According to the announcement by WAMCO, which is listed in Lagos, a total loss of 10,3 billion was incurred. This translates to €20,4 million. Total turnover in the first quarter fell slightly to around €177 million.
From a business perspective, the company has fallen victim to a combination of setbacks, such as raging inflation, a sharp devaluation of its own currency and a shortage of foreign currency.
Almost all foreign companies in Nigeria are in the same boat. Food and soap company Unilever has decided to withdraw from a number of activities from the Nigerian market due to the chaotic economic situation. Products such as Omo, Sunlight and Lux will be discontinued.
In its 2022 annual report, FrieslandCampina reported a setback of approximately €63 million because earnings could not be transferred out of the country. It is not the only overseas setback for FrieslandCampina. In Pakistan the gains made evaporated subsidiary Engro due to massive inflation.