Nutricima

Overview

Nutricima is a 50:50 joint venture with PZ Cussons plc in Nigeria. This business has developed a branded product portfolio to serve all market segments including liquid, condensed and powdered milk-based products. Nigeria is a large and developing market, catering for a population estimated at 151 million people, with a fast growing urban middle class. Local oil production and a relatively stable political environment has supported strong GDP growth. Nutricima employs 260 people at its evaporated milk manufacturing and powder packing facility near Lagos.

2008 was a challenging year as the business continued to experience the impact of significant increases in raw material commodity prices, which could not be fully passed on in the marketplace.

Good operational progress continued to be made with the capacity expansion project for reconstituted evaporated milk now complete and the factory producing ‘ready-to-drink’ products is on target to be commissioned in the first half of 2009.

2009 Outlook

Nutricima is expected to make good progress in 2009, with improvements in its brand portfolio, market positions and increased top line growth forecast. Raw material commodity prices have reduced significantly and this is expected to improve margins