News Milk
FrieslandCampina is also out of the red again in Nigeria
FrieslandCampina continues to report positive figures. At the end of last month it already reported half-year figures that were better than many expected. Now there is the news that the Nigerian subsidiary Wamco is also out of the red again.
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Bottom line, Wamco made a profit of 8,5 billion Nigerian Naira, which, using current exchange rate data, is approximately €4,75 million. Over the entire first half of 2024, a loss of approximately €700.000 is still visible. This is due to disappointing figures in the first quarter.
In a statement, the company speaks of challenging market conditions due to inflationary pressure, in combination with weak economic conditions in the country. Nevertheless, Wamco, as a self-proclaimed provider of premium dairy products, managed to increase sales volumes.
Turnover significantly higher
This is also evident from the turnover, which increased by no less than 62% to €71 million in the past quarter, although this probably also includes some inflationary pressure. The temporary delivery of the troubled Naira currency also helped. In the meantime, the currency has weakened considerably again. Costs have been cut and that also contributes to profits. Although the figures for the first half of 2024 were still negative, Wamco says it is confident in achieving structural profitability.
During the explanation of the half-year figures 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.