One of Nigeria’s leading Fast Moving Consumer Goods (FMCG),

This disclosure was made on Thursday, May 18, 2017 during the company’s 44th Annual General Meeting (AGM) in Lagos, Nigeria.

The company noted that it has a satisfactory operating results and performance, despite harsh macroeconomic condition and an unfriendly operating business environment.

The company’s financial reports showed an increase in its turnover from N120.72 billion in 2015 to N123.75 billion in 2016 (2.5 percent growth), and a PBT of N19.96 billion (7.2 percent growth) in 2016 as against N18.62 billion achieved in 2015. These performances were anchored on the twin impact of the growth in turnover and a significant reduction in administrative costs of the company.

According to the Chairman of the company, Mr Jacobs Moyo Ajekigbe OFR, the company was able to whether the harsh business environment in 2016 through increasing its distribution network and coverage of many sales outlets, with more collaborative initiatives with the local dairy farmers.

“Though 2016 was a challenging year due to the prevailing economic climate, which impacted on the cost of production, raw and packaging materials sourcing; the Company recorded remarkable achievements in operational efficiencies, cost management and improved productivity across the supply chain systems with new investments in human capital development and facility improvements.”

“The Company made tremendous progress in its journey of continuous improvement in quality, ensuring that the high quality of the Company’s products is maintained throughout the value chain from grass to glass. This laudable pursuit of our Company was given credence in the course of the year with the achievement of Food Safety Systems Certification (FSSC) 22001” he said.

At the meeting, the company’s shareholders approved a dividend payout of 75 of the profit after tax (PAT), while its company is positioning to focus on improving the quality of milk obtained from local dairy farmers.

“The Shareholders approved the Board of Directors' proposal of a total dividend payout of 75 percent of the Company’s PAT for the year under review, which is equivalent to N10.65 per N0.50 share. An interim dividend of N2.95 per N0.50 share was paid in November 2016, and a final dividend of N7.70 per N0.50 share was approved,” in a statement signed by the company.

The company noted that current foreign exchange challenges, high inflation, low consumer purchasing power and an increase in retail price of milk are likely to adversely impact the company’s sales and profitability in 2017.