Former bank chief raises hope on economic rebound
The Chairman of FrieslandCampina WAMCO, Jacob Ajekigbe, has said that the country’s Gross Domestic Product (GDP) will expectedly rebound in 2016, though marginally.
He however said that the rebound expected is tied to having the right mix of fiscal and monetary policies in place, which would help to stimulate the economy and attract domestic and foreign investments.
Speaking in Lagos during his company’s yearly general meeting, where the company unveiled a turnover of N120.72 billion, he said due to significant foreign exchange constraints, combined with weak consumer sentiment, the sales and profitability would be significantly impacted in 2016.
“The annual report and accounts were approved by the company’s shareholders with a dividend payout of N13.73 per N0.50 share,” he said.
The company said that its commercial and financial performance remained satisfactory despite the harsh business environment, which resulted to a decreased turnover of 4.5 per cent from N126.44 billion in 2014, to N120.72 billion in 2015.
Profit before tax however, increased by 13.3 per cent from N16.50 billion to N18.60 billion as a result of the significant reduction in the cost of sales despite increased operating and finance costs.
According to Ajekigbe, the company improved its operational efficiency in production by upgrading all of its manufacturing equipment in order to produce better and higher quality products, as well as optimise cost of production.
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