Fan Milk invests N600m in operations, holds shareholders’ meeting
The investment, which formed part of the strategies for the strengthening of the market position of its major brands and repositioning of the company for future growth, entailed installation of new machines to boost production capacity, reconstitution of depot service team and opening of new depots to give fillip to sales strategies.
Chairman, Board of Directors, Oba Otudeko, made the disclosure in an address to shareholders during the company’s 45th Annual General Meeting held at Lafia Hotel, Ibadan yesterday.
Otudeko noted that these investments on electricity generation, points of sales materials and opening of new depots were done at a huge cost to the company, adding that new products were being developed constantly to ensure it stayed on sound footing ahead of competition.
“Our company recorded a turnover of 6.3 billion during the year ended 31st December 2009, while Profit Before Tax and exceptional items has tremendously improved over that of 2008 i.e from N128.06 million to N414.8million,corresponding to an increase of 224 per cent,” he disclosed.
Otudeko explained that given the volatile circumstances in which it operated the Board has decided to plough back profits made on the business within the year into operations to enable it consolidate its future by procuring additional sachet filling and ice cream machines in order to meet sales demands during the peak seasons.
“As a manufacturing entity whose operations are heavily dependent on regular electricity supply and other infrastructures, year 2009 posed power generation problems more than ever before with PHCN power supply at its lowest ebb.
Rather than whining over the power situation, which seemed to be perennial in nature and peculiar to all and sundry, the board had to take a positive step by procuring another 1500KVA generator in addition to existing ones” Otudeko said.
The FAN Milk Chairman remarked that a new sachet product – Fan Vanille – was recently introduced into the market, and recorded instantly successful patronage.
Founded 47 years ago, the dairy company is known throughout Nigeria for its high quality products such as yoghurts, chocolate drinks, ice cream, ice lollies, Tampico fruit drinks in citrus and Island flavours as well as Fanjuice.
Fan Milk Plc is partly owned by a foreign dairy services company, the Industrialisation Fund for Developing Countries (IFU) and a number of Nigerian shareholders. The name Fan and the Fan logo are not only known in Nigeria, but could also be found in Ghana, Togo, Cote d’ Ivore, Burkina Faso, Benin Republic among others and are synonymous with the nutritious and cool refreshment value of the products.
The company’s core values include honesty and integrity, commitment to responsibility and ownership, discipline, creating understanding and leadership.
Others are environmental preservation, judicious use of resources and teamwork.
Fan Milk’s CSR policy has been a socially responsible corporate citizen, which creates employment and income generating opportunities where and when possible and contributes to the enrichment of the Nigerian people.