FrieslandCampina notices consequences of war in Iran

FrieslandCampina achieved good results in Pakistan and Nigeria in the first quarter, with higher revenue and profit. However, the war in the Middle East is creating uncertainty in the region, which could affect sales. FrieslandCampina Engro Pakistan Limited saw profit in the first quarter rise by 70% to 1.851 billion Pakistani rupees, equivalent to €5.6 million. Revenue also increased, by 10% to 28.7 billion rupees. Cost savings contributed to the profit growth, as did easing inflation. A higher tax on UHT milk is causing volumes in this segment to decline. The company is also warning of headwinds in the coming quarters. The war in the Middle East, which began at the end of March, brings considerable uncertainty. Higher oil prices are driving up production costs and putting pressure on the affordability of dairy, which could possibly lead to a drop in demand. Wamco FrieslandCampina Wamco, of which around 68% is owned by the cooperative, also performed strongly in Nigeria. Revenue rose by 14% to 182 billion Nigerian naira. Converted, that is €112 million on a quarterly basis. The bottom line was a profit of €7.6 million. Compared with the same period last year, profit increased fourteenfold. The increase is attributed to better sales figures, tighter inventory management and sharply lower financing costs.