Together we dream learn explore achieve - Nairametrics … · Together we dream learn explore...

Together we

dream learnexplore achieve

At Friesland Foods WAMCO Nigeria, we share a visionlike we do for our brands the spirit of self-belief andwinning.We encourage all generations that to achievesuccess, you must each believe in your individual dreamsof greatness.

It’s in You!

Friesland Foods WAMCO Nigeria PLC Annual Report 2008

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contentsFinancial highlights 3

Notice of AGM 4

Chairman’s Statement 6

The Board 12

Financial Statements

Directors, Professional Advisers and Registered Office 16

Report of the Directors 17

Report of the Audit Committee 22

Report of Independent Auditors 23

Significant Accounting Policies 24

Profit and Loss Account 26

Balance Sheet 27

Statement of Cash Flows 28

Notes to the Financial Statements 29

Statement of Value Added 38

Five Year Financial Summary 39

Proxy Card 41

Our Products 44

Corpoate Social Responsibility 46

Notes 52


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financial highlightsfor the year ended 31 december 2008

20082008200820082008 2007 % Increase/=====NNNNN='000='000='000='000='000 =N='000 (Decrease)

Turnover 62,173,083 49,653,609 25.21

Profit before Taxation 6,778,156 5,659,695 19.76

Taxation (2,205,940) (1,858,483) 18.70

Profit after Taxation 4,572,216 3,801,212 20.28

Share Capital 390,535 390,535 -

Shareholders' Funds 7,583,122 6,990,451 8.48

Per Share DataNumber of =N=1.00 Ordinary Shares 390,534,375 390,534,375 0.00

Earnings 11.71 9.73 20.28Interim dividend paid 3.15 2.69 17.10Final dividend proposed 11.48 7.04 63.07Net Assets 19.42 17.90 8.48

Number of employees 726 668 8.68


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notice of agm

NOTICE IS HEREBY GIVEN that the Thirty Sixth Annual General Meeting of Friesland Foods WAMCO Nigeria Plc willbe held at the Shell Hall, MUSON Centre, 8/9 Marina, Onikan, Lagos on Wednesday, 29 April, 2009 at 11.00 a.m. totransact the following business: -

Ordinary Business(1) To receive the Report of the Directors and the Audited Financial Statements for the year ended December 31,

2008 together with the reports of the Auditors and Audit Committee thereon.(2) To declare a final dividend.(3) To elect/re-elect Directors.(4) To authorize the Directors to fix the remuneration of the Auditors.(5) To elect members of the Audit Committee.

Special Business(6) To approve the remuneration of the Directors.(7) To consider and if thought fit, pass the following as a special resolution:

That the name of the company be changed from Friesland Foods WAMCO Nigeria Plc to FrieslandCampinaWAMCO Nigeria Plc.

(8) To consider and if thought fit, pass the following as a special resolution:That clause 1 of the Memorandum of Association of the Company be amended to read as follows:The name of the company is FrieslandCampina WAMCO Nigeria Plc.

BY ORDER OF THE BOARD

Ramat Ramat Ramat Ramat Ramat TTTTTosin osin osin osin osin YYYYYusuf (Mrusuf (Mrusuf (Mrusuf (Mrusuf (Mrs.)s.)s.)s.)s.)Company SecretaryLagos, Nigeria

Dated this 26th day of February, 2009

NOTES

1. Proxy.A member of the Company who is entitled to attend and vote at themeeting is entitled to appoint a proxy to attend and vote in his/herstead. A proxy need not be a member of the Company. A proxy form is enclosed in the Annual Report. To bevalid, the instrument of proxy must be duly stamped by the Commissioner of Stamp Duties and deposited at theoffice of the Registrar, First Registrars Nigeria Limited, Plot 2, Abebe Village Road, Iganmu not later than 48hours before the time of the meeting.

2. Dividend WarrantsIf the dividend recommended by the Directors is approved, dividend warrants will become payable onWednesday, April 29, 2009 to members whose names are on the Register of Members on Friday, April 10, 2009.

3. Closure of RegisterThe Register of Members and Transfer Books of the company will be closed from Monday, April 13, 2009 toWednesday, April 15, 2009, both dates inclusive, for the purpose of paying the dividend.

4. Audit CommitteeIn accordance with Section 359(5) of the Companies and Allied Matters Act, Cap. C20, Laws of the Federation ofNigeria 2004, any shareholder may nominate another shareholder for appointment to the Audit Committee bygiving notice of such nomination, in writing, to the Company Secretary, at least 21 days before the AnnualGeneral Meeting.

Ramat Ramat Ramat Ramat Ramat TTTTTosin osin osin osin osin YYYYYusuf (Mrusuf (Mrusuf (Mrusuf (Mrusuf (Mrs.)s.)s.)s.)s.)Company Secretary

Towards an enduring relationship

chairman’s statement

LLLLLttttt..... Gen.Gen.Gen.Gen.Gen. (R (R (R (R (Rtd.) td.) td.) td.) td.) TTTTT.Y.Y.Y.Y.Y..... Danjuma Danjuma Danjuma Danjuma Danjuma GCONChairman


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Global Financial Crisis andNigeria2008 has been a year of extremesin the financial world. We havewitnessed the highest ever level ofoil prices and in the same year wehave seen the biggest decline in oilprices ever recorded in a singleyear. Stock markets all over theworld have fallen to levels thatwere unimaginable at the start of2008, with many global companieslosing their values and in somecases filing for bankruptcy. Thecurrencies on the world markethave been extremely volatile andthis has had a significant impact onthe trade balances of majoreconomies.

The global economy has moved intoa deeper recession than wasoriginally envisaged. The magnitudeof the downturn is such that eventhe best economists in the world didnot see it coming. Most developedeconomies are witnessingunprecedented levels of contractionin growth and high unemployment.The World Bank in its recent reporthas trimmed global growthestimates from 2.5% to 0.9% for2009. A number of Europeancountries have even recordednegative growth in the last twoquarters of 2008. The recession is,however not confined to thedeveloped economies alone, aseven the emerging economies suchas China, India and Singapore arefaced with a slow down in growth.

In today's globalized economy, it didnot take long for the effects to befelt in Nigeria. The impact onNigeria was initially thought to bemuted and it was believed that nomajor or structural adjustments inthe economy would be required.The External Reserve at $62bn wasconsidered robust enough to supportthe currency from externalpressures. The external debt levelof $5bn is one of the lowest in theworld. Oil prices and revenues at$85 per barrel were well ahead ofthe budget and breakeven price forfiscal revenues.

However, the plunge in world oilprices to below $40 per barrel andthe cutback in production haveshown that Nigeria is extremelyvulnerable to the shocks of theglobal financial crisis. GivenNigeria's dependence on oilrevenues, the impact on theeconomy towards the end of 2008was keenly felt. The most visiblesign was the sharp decline in thevalue of the Naira, whichimmediately made all imported rawmaterials and finished goods intoNigeria more expensive.

The Federal government is takingsteps to address the financial crisisin Nigeria and it is hoped that withthese measures, investor confidencewill be restored and consumerspending will return to the levelsrequired to revive the economy.However it is an uphill task and it


will take the Nigerian economy, likethe rest of the world, some timebefore any measure of normalityreturns.

The dairy industry has also beenimpacted by the financial crisis. Asthe crisis deepened, the globaldemand for dairy products too hasshown a decline while supply hasremained at good levels. As a result,one of the 'positive' outcomes for ushas been the decline in prices ofdairy raw materials towards the endof 2008. Dairy raw material pricesyou will recall had reached recordhigh levels in 2007. However this'gain' was more than negated by thesharp decline in the value of theNaira versus the Dollar and Eurotowards the end of 2008.

Operating Results andPerformanceDuring the year under review, I amhappy to report that our companycontinued to grow at a very healthyrate despite the challenges facedboth within Nigeria and as a resultof the global slowdown. Turnoverduring the year increased by 25.2%from =N=49.7 billion in 2007 to =N=62.2billion. The Profit before taxincreased by 19.8% from =N=5.7billion to =N=6.8 billion. Profit aftertaxation also increased by 20.3%from =N=3.8 billion to =N=4.6 billion.

Distinguished Shareholders, my colleagues on the Board, invitedguests, Ladies and Gentlemen. It is with great pleasure that Iwelcome you all to the 36th Annual General Meeting of ourCompany. I am also delighted to present the Annual Report andFinancial Statements for the year ended 31 December 2008.


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DividendAs mentioned in earlier years, thecompany endeavors to pay out 75%of its profit after tax as dividend toits shareholders. The final dividendpaid out, either below or above the75% level, is however dependent onthe financial performance of thecompany and the state of its cashand bank balances.In 2008, the directors arerecommending a total dividend of=N=14.63 per =N=1.00 share for theyear under review, which isequivalent to 125% of thecompany's profit after tax for 2008.An interim dividend of =N=3.15 waspaid in November 2008. Therefore afinal dividend of =N=11.48 per =N=1.00share is being proposed for yourapproval. The final dividend whichwill be subject to a deduction ofwithholding tax at the rateprescribed by Government will bepayable on April 29, 2009.

OperationsThe company continued to investfurther in its operations in order tocontinue to cater for growth in 2008and beyond. The modernization andexpansion of our factories continuedduring the year. Some of the keyprojects during the year were thecompletion of the new powderfactory warehouse, commissioningof the new commercial building anda new modern canteen for theadded comfort of our employees.Other projects such as a newinternal power plant to remain fullyself reliant for our energy needs,were started and are due forcompletion in the coming year.

Our Company, in response to thecompetitive business environment,continued with the implementationof World Class OperationsManagement (W-COM) initiatives,to effectively and efficientlymanage our resources. W-COM

approach encourages the use ofimprovement teams to create asense of ownership amongemployees. This approach promotessustainability and increases ourproblem solving capability. Thebenefits have continued to be verygood with among other thingsincreases being recorded inefficiency levels of our factories.

At the 41st Annual General Meetingof the Manufacturers' Association ofNigeria (M.A.N.), Ikeja branch, ourcompany emerged the overallwinner of the 2008 Best-KeptIndustrial Premises Competition andwon the only cup. This is asignificant achievement, as MANIkeja is made up of ten Sectoralgroups with total membership of328 companies.

The anti-flooding program, whichcommenced in 2007, was concludedin the first quarter of 2008. Theerection of wooden barriers blockedwith sand bags at all the entrancesleading into the premises,warehouses and factories withfunctional flood pumps ensuringthat all the drainages are clearedhas helped to forestall flooding. Wealso cooperated with neighboringcompanies to de-flood oursurrounding environment, therebyalso helping communities living inclose proximity of our factory.

During the year under review, ourcompany successfully introducedPeak Choco to the market. It is arecipe, which has been speciallydeveloped, with the help of theResearch and Development (R&D)facilities of our technical partners inHolland. Peak Choco is producedunder hygienic conditions using thebest raw materials and ingredientsto guarantee exceptional taste andquality for all Chocolate beveragelovers.

There was a serious port congestionin the last quarter of 2008, whichhas continued into the new year aswell. This has led to delays ofconsignments of raw materials andfinished goods leading sometimesto very low stock levels. However Iam glad to report that this has notyet had any serious impact on thebusiness.

Market DevelopmentThe global slowdown in demandresulted in the total dairy market inNigeria also declining in volume.However I am glad to report thatyour company still continued togrow its sales volumes and hencewas able to grow its market share.WAMCO is now approaching 50%value share in total dairy market!This was possible in a decliningmarket due to some of the followingreasons:

Maintaining world-class qualitywithout diluting consumerpropositions despite very highraw material prices.Continued investment tosupport the brand Peak withthe successful "It's in You''campaign.Further streamliningdistribution infrastructure andnetwork.Closely working with our tradepartners through out thecountryVery successful launch of PeakChoco

Peak has continued to maintain itspremium position in the market in2008 and continues to be thepreferred choice when it comes tomilk for a large number ofNigerians.

Peak Growing up Milk 123 was re-launched with a more appealingpack design and Extra Fortified



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formula, including specialingredient DHA to boost braindevelopment of children.

As I mentioned earlier, one of thehighlights of the year was theintroduction of Peak Choco in 25gsachet in August 2008. From themoment it was launched, supplycould not meet up with theexceptionally high demand.Additional investment is now beingmade and more capacity isexpected to be in place by mid2009. Peak Choco is a product thathas been specially developed tomatch the taste profile of Nigerianconsumers. It is available in anaffordable and convenient singleserve sachet.

Three Crowns continued tomaintain its position as the No 2milk brand in the evaporated milkmarket. Three Crowns trays (24's)introduced in 2008 sold well andwill be further used to gaindistribution in 2009 and beyond.

In 2008, we commenced theprocess of not only expanding ourreach but also of improving theprofitability of our distributors toensure future growth. We haveopened additional depots whileconverting the existing depots toact as supply points to somedistributors. This has effectivelyreduced lead times and theirworking capital deployed at anypoint in time. Payment systemconversion from credit to cash alsocommenced in 2008, with veryimpressive results for both thedistributors and WAMCO.

In 2008 as part of a project aimedat reaching consumers in ruralareas, we commenced pilotschemes for new distributionroutes to service rural areas, intwo communities. The results have

shown that with the right productssold at affordable prices, this is aviable route to grow further.Accordingly in 2009 we will roll outthe same model in more rural areasacross the country.

Corporate Social ResponsibilityWe continue to take very seriously,our social responsibilities to thecommunity in our immediateneighborhood and the citizens ofNigeria as a whole. We arecommitted to playing our part toensure that we are a healthier andmore prosperous nation. OurCorporate Social Responsibility(CSR) has been stepped up withincreased relevance and goodwillfor our company across Nigeria.

We are one of the pioneers ininstalling solar powered boreholes.Our water projects continue to beapplauded with our most recentachievement of commissioning twosolar powered boreholes in Ondoand Bauchi states. This brings thenumber of the boreholes we haveinstalled nationwide to twenty-one.Our contribution towards improvingthe standards of education throughour school adoption programcontinued as eighteen schoolsspread across the six geo-politicalzones received computers andprinters to improve IT learning. Sixtertiary institutions also receivedendowment funds for qualityresearch in the area of foodtechnology during the year underreview.

Registered Charity organizations,professional bodies and other keyassociations also felt the impact ofour support through cash andproduct donations to help improvethe conditions of living of thedestitute in our society as well asidentify with their cause.

The Olu Akinkugbe Foundationthrough its child nutrition centersuccessfully launched the pilotphase of its Vitamin A Campaign tohelp reduce substantially theincidences of Vitamin A deficiencyamongst Children and Mothers.Effective communication of theimportance of Vitamin A(micronutrient) was emphasizedthroughout the campaign in four (4)communities as Ikeja and Ogba(Lagos State), Ikereku (Oyo State)and Esie (Kwara State). Nutritionenlightenment continues to reachmothers through our satelliteNutrition Centres, sited in keygovernment hospitals.

Human ResourcesOur company enjoyed stableindustrial relations climate andharmonious working environment inthe year just ended. This is due toour consistent and fair policies,which result from our corporateculture of regarding people as themost valuable asset of thecompany. This was critical also incontributing to this year's result andI would like to thank all thecompany staff for their continuedco-operation, support andcommitment.

The company has demonstrated itsfaith in its people in various ways,including internal promotions with atotal of 91 members of staff beingpromoted during the period. Wecontinue to provide access to loans(such as for cars and housing) andwe have also focused on training(over 500 staff attended local andoverseas training programs). Ourlong service award ceremonies alsoacknowledge the contributions ofthose members of staff who haveserved the company for a significantperiod of time. 80 members staffbenefited during the period underreview.



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Further to an agreement withnational unions in the Association ofFood, Beverage and TobaccoEmployers (AFBTE) sector, thecompany also entered into a newagreement regarding gratuity, withits own local chapters. I am glad toreport that this new agreement hasbeen widely applauded by ouremployees.

Board ChangesMs Evelyn Oputu and Mr. LouisMbanefo retire by rotation andbeing eligible offer themselves forre-election. Mallam Ahmed Dasukijoined the Board as a non-executivedirector during the year. Please joinme in welcoming him to the Boardof our company. Engineer MustafaBello who was appointed as a non-executive director of the companyon November 27, 2008, resignedthis appointment after he was re-appointed as the ExecutiveSecretary of the NigerianInvestment Promotion Commission(NIPC).

At this annual general meeting, Iwill retire by rotation but will notoffer myself for re-election. It hasbeen a pleasure being involved withthis company over the last 25 years.I am indeed grateful for theenormous support I have receivedfrom all the stakeholders in WAMCO- management & staff, clients &customers and most especially youour shareholders, my fellowdirectors and our technical partners.Without this support, we would nothave achieved the success, whichthe company enjoys today.

Shareholders' VisitAt the invitation of the company'smanagement, some shareholdersvisited the company's factoriesduring the year. They gained adeeper understanding of thecompany and were impressed withour continuous quest for

improvement. At an interactivesession after the tour, theshareholders had an opportunity toexchange views with themanagement team. Manyexpressed their satisfaction with thelevel of the company'sdevelopment. We hope to continueto give our shareholders theopportunity to visit our operations inthe future.

Change of NameWith effect from 1 January 2009,our technical partners, RoyalFriesland Foods has merged withanother large dairy cooperative inHolland called Campina. The newmerged company is now calledRoyal FrieslandCampina. RoyalFrieslandCampina is now the largestdairy cooperative in the world andamong the top four dairy companiesworldwide. This merger brings withit significant benefits, includingaccess to a huge Research &Development facility andopportunities for staff for careerdevelopment within the expandedcompany.

The name of your company will alsobe changed to FrieslandCampinaWAMCO Nigeria PLC. At this AnnualGeneral Meeting, this name is beingpresented to you for your approvalthrough a Special Resolution.

Future Outlook2009 looks set to be a very difficultyear for businesses all over theworld with major economiesalready in recession. Prices ofequities on the Nigerian StockExchange are at its lowest ebb. Thecontinuous depreciation of the Nairais not helping matters - this singlefactor has potentially a huge impacton the results of the company in2009, as the cost of our importedraw materials, finished goods andmachinery will go up dramatically.Local suppliers of materials and

services to the company are goingto increase their prices putting evenfurther pressure on our margins.Manufacturers must be careful notto price themselves out of themarket and the same is true forWAMCO. These factors willsignificantly impact negatively onour bottom line during 2009.Management, as usual, will do itsbest to mitigate these effects.Our focus will however continue tobe on longer-term development andgrowth. We shall continue to focuson maintaining our marketleadership position in the dairyindustry by further investing in ourbrands and our operations to ensurethat our dairy products are of world-class quality and stay highlyrelevant for the Nigerianconsumers.

ConclusionDistinguished Shareholders andguests, I will conclude by thankingour technical partners for theirvision and guidance in ensuring thatwe remain the producers of the milkbrands of choice. I thank ourdistributors and consumers for theirsupport and continued interest inthe company. I appreciate our staffand management for their hardwork, dedication and commitmentin achieving and exceeding the verystretching targets of the past year,even in the face of such challengingconditions. Finally, I appreciate mycolleagues on the board for theircooperation in directing the affairsof our company.Distinguished ladies and gentlemen,I thank you for your kind attention.

LLLLLTTTTT..... GEN.GEN.GEN.GEN.GEN. (R (R (R (R (RTDTDTDTDTD.) .) .) .) .) TTTTT..... YYYYY..... D D D D DANANANANANJUMA JUMA JUMA JUMA JUMA GCONChairman

Nurturingpositively


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boarboarboarboarboard od od od od of dirf dirf dirf dirf directorectorectorectorectorsssss

Mr. Theodorus Spierings

Lt. Gen. (Rtd.) T.Y. Danjuma GCON, Chairman Mr. Kapil Garg, Managing Director


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Mr. Lucas Dahlhaus MFRMr. Isaac Adefemi Agoye,Executive Director

Mallam Ahmed Dasuki

Mrs. Oyinkan Ade-Ajayi

Ms. Evelyn Oputu OON

Mr. Louis Nnamdi Mbanefo SAN

contents

Directors, Professional Advisersand Registered Office 16

Report of the Directors 17

Report of the Audit Committee 22

Report of the Independent Auditors 23

Significant Accounting Policies 24

Profit and Loss Account 26

Balance Sheet 27

Statement of Cash flows 28

Notes to the Financial Statements 29

Statement of Value Added 38

Five Year Financial Summary 39

Proxy Card 41

Products 44

CSR 46

Notes 51

financialsfinancialsfinancialsfinancialsfinancials20082008200820082008Nothing is more

central to anorganization'seffectiveness than itsability to transmitaccurate, relevant,understandableinformation amongits members- Saul W. Gellerman. ”

“


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Chairman:Chairman:Chairman:Chairman:Chairman: Lt. Gen. (Rtd.) T.Y. Danjuma, GCON

Managing Director:Managing Director:Managing Director:Managing Director:Managing Director: Mr. Kapil Garg (Indian)

Directors:Directors:Directors:Directors:Directors: Mr. Isaac Adefemi Agoye ExecutiveMrs. Oyinkan Ade - AjayiEngineer Mustafa Bello Resigned on 27 February 2009Mr. Lucas Dahlhaus, MFR (Dutch)Mallam Ahmed DasukiMr. Louis Nnamdi Mbanefo SANMs Evelyn Ndali Oputu, OONMr. Johannes Priem (Dutch)Mr. Theodorus Spierings (Dutch)

Company Secretary:Company Secretary:Company Secretary:Company Secretary:Company Secretary: Mrs. Ramat Tosin Yusuf

Registered Office:Registered Office:Registered Office:Registered Office:Registered Office: Plot 7B Acme RoadIkeja Industrial Estate,Ogba, Ikeja, LagosNigeria.

Auditors:Auditors:Auditors:Auditors:Auditors: Akintola Williams Deloitte(Chartered Accountants)235 Ikorodu Road, Ilupeju,P.O. Box 965 Marina,Lagos

Solicitors:Solicitors:Solicitors:Solicitors:Solicitors: T.C. Mbanefo & Co(Barristers & Solicitors)

Registrars:Registrars:Registrars:Registrars:Registrars: First Registrars Nigeria LimitedPlot 2 Abebe Village Road,Iganmu, Lagos

Principal Bankers:Principal Bankers:Principal Bankers:Principal Bankers:Principal Bankers: First Bank of Nigeria PlcGuaranty Trust Bank PlcIntercontinental Bank PlcOceanic Bank PlcStanbic IBTC Bank PlcUnion Bank of Nigeria PlcUnited Bank of Africa PlcZenith Bank Plc

directors, professional advisersand registered office


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report of the directorsfor the year ended 31 december 2008

The Directors have pleasure in submitting to members, their report and the audited financial statements for the yearended 31 December 2008.

1. Principal ActivitiesThe Company is principally engaged in the manufacturing and marketing of evaporated milk, instant milkpowder and other dairy products. There was no change in the activities of the Company during the year.

2. State of AffairsIn the opinion of the Directors, the state of the Company's affairs was satisfactory and no event has occurredsince the balance sheet date, which would affect the financial statements as presented.

3. Result for the yearIn spite of the harsh operating environment, the Company achieved a creditable result in the year under review.

=N='000Turnover 62, 173,083

Profit for the year before taxation 6,778,156Taxation (2,205,940)

Profit for the year after taxation 4, 572,216

4. DividendThe Company paid an interim dividend of =N=3.15 per share in November 2008 and proposes a final dividend of=N=11.48 per share subject to the deduction of withholding tax at the appropriate tax rate.

As a policy, the Company endeavors to pay out 75% of its profit after tax as dividend to its shareholders. Thefinal dividend paid out depends on the financial performance of the Company and the state of its cash and bankbalances. Considering the very strong cash and bank balances and a very impressive result, the Directors havedecided to pay an additional 50% dividend to shareholders. This will bring the total dividend to 125% of currentyear's profit. The implication of this is that 25% of the dividend will be paid from revenue reserves.

If this proposed final dividend is accepted, the total dividend in respect of year 2008 operations will be =N=14.63per share.

5. Fixed AssetsInformation relating to changes in fixed assets is given in Note 6 to the financial statements. In the opinion ofthe Directors, the market value of the Company's properties is not less than the value shown in these financialstatements.


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report of the directorsfor the year ended 31 december 2008

6. DirectorsThe names of Directors at the date of this report and of those who held office during the year are as follows:

Lt. Gen. (Rtd.) T.Y. Danjuma, GCON ChairmanMr. Kapil Garg (Indian) Managing DirectorMr. Isaac Adefemi Agoye Executive DirectorMrs. Oyinkan Ade - AjayiEngineer Mustafa Bello Appointed on 27 November 2008 and

resigned on 27 February 2009Mr. Lucas Dahlhaus, MFR (Dutch)Mallam Ahmed Dasuki Appointed on 23 April 2008Mr. Louis Nnamdi Mbanefo SANMs Evelyn Ndali Oputu, OONMr. Johannes Priem (Dutch) Resigned on 26 February 2009Mr. Theodorus Spierings (Dutch)

Ms Evelyn Oputu and Mr. Louis Mbanefo retire by rotation and in accordance with Article 85 of the Company'sArticles of Association and being eligible, offer themselves for re-election. Lt. Gen.(Rtd.) T.Y. Danjuma alsoretires by rotation but shall not be offering himself for re-election.

Mr. Johannes Priem resigned from the board on February 26, 2009. We thank him for his services to thecompany.

Mallam Ahmed Dasuki who was appointed a non-executive director since the last annual general meeting retiresin accordance with Article 91 of the Company's Articles of Association and being eligible, offers himself for re-election.

Engineer Mustafa Bello who was appointed a non-executive Director on 27 November 2008, resigned after hisre-appointment as the Executive Secretary of the Nigerian Investment Promotion Commission (NIPC) bygovernment.

7. Directors interest in contractsNone of the Directors has notified the Company for the Purpose of Section 277 of the Companies and AlliedMatters Act, CAP C20, LFN 2004 of any discloseable interest in contracts with which the Company was involvedas at 31 December 2008

8. Interest of DirectorsThe interest of Directors in the issued share capital of the Company as recorded in the register of Directors'shareholding as at 31 December 2008 are as follows:

Number of =N=1.00 ordinary sharesheld as at 31 December2008 2007

Lt. Gen. (Rtd.) T.Y. Danjuma (Indirect) 703,711 553,711Mr. Isaac Adefemi Agoye 986,463 1,136,463Mrs. Oyinkan Ade - Ajayi 386,718 386,718Mallam Ahmed Dasuki (Indirect) 969,406 NilMr. Louis Nnamdi Mbanefo 590,625 590,625


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9. Responsibilities of DirectorsIn accordance with the provisions of Sections 334 and 335 of the Companies and Allied Matters Act, CAP C20,LFN 2004, the Company's Directors are responsible for the preparation of the financial statements which give atrue and fair view of the state of affairs of the Company as at the end of the financial year and of its profit andcash flows for the year and comply with the provisions of the Act. These responsibilities include ensuring that:

i) Adequate internal control procedures are instituted to safeguard assets, prevent and detect fraud and otherirregularities;

ii) Proper accounting records are maintained;iii) Applicable accounting standards are followed;iv) Suitable accounting policies are used and consistently applied; andv) The financial statements are prepared on the going concern basis unless it is inappropriate to presume that the

company will continue in business.

10. Employment of disabled personsIt is the policy of the Company to consider disabled persons for employment if academically and medicallyqualified. The Company had no disabled person in its employment as at 31 December 2008.

11. Health, safety and welfare of employees at workHealth and safety regulations are in force within the company's premises and employees are aware of existingregulations. Protective clothing and fire fighting equipments are provided in the production areas, warehousesand offices.

The Company has retainership with some hospitals where employees can be treated. There is an on-site clinic inour factory, manned by qualified medical personnel and providing primary health care round the clock foremployees at work. We comply with relevant statutory provisions and regulations on health, safety and welfarematters as well as providing the education required to enable compliance by employees. We organize a weeklong safety programme each year, to get employees involved with matters of safety.

12. Employees' interestThe Company is committed to keeping employees fully informed as far as possible regarding the Company'sperformance and progress and seeking their views wherever practicable on matters, which particularly affectthem as employees. Management, professional and technical expertise are the Company's major assets, andinvestment in developing such skills continues.

13. Analysis of shareholdings

Range Number of % Number of %Shareholders shares held

1 - 100,000 1,337 88.78 13,919,700 3.56100,001 - 500,000 109 7.24 24,697,992 6.32500,001 - 1,000,000 24 1.59 16,700,679 4.281,000,001 - 2,000,000 26 1.72 35,018,929 8.972,000,001 - 6,000,000 7 0.46 24,235,733 6.21Above 6,000,000 1 0.07 22,500,000 5.76

Nigerian Public 1,504 99.87 137,073,033 35.10Friesland Int'l Beheer B.V. 1 0.07 206,240,874 52.81Bank of Industry 1 0.07 47,220,468 12.09

Total 1,506 100.00 390,534,375 100.00

report of the directorsfor the year ended 31 december 2008 (cont’d)


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SUPPLIERSSUPPLIERSSUPPLIERSSUPPLIERSSUPPLIERS1. The Company's significant overseas suppliers are:

Friesland Foods B.V, The NetherlandsHoogwegt International BV, The NetherlandsCorus Packaging Steel, The NetherlandsIrish Dairy Board, IrelandKerry Ingredients Charleville Co; IrelandLakeland Dairies Bailie Foods Limited, IrelandMurray Goulburn Cooperative Company Limited, AustraliaValio Limited, FinlandFonterra Limited, New Zealand

2. The Company's significant local suppliers are:GMT Nigeria LimitedNigerian Cartons and Packaging Company LimitedPresco Nigeria LimitedWAHUM Packaging LimitedVeevee Paper Products LimitedArvee Industries LimitedEskade Ventures LimitedAvons Crowns Cap Nigeria PlcNampak PlcRigid Pak Container Limited

The Company is not associated with the local suppliers and obtains all its materials at an arm's length basis.

15. Royalties and technical service agreementThe Company has technical, management services, and research and development know-how licenceagreements with Friesland Brands B.V., in the Netherlands. Under the agreements, technological, scientific andprofessional assistance are provided for the manufacture, quality control and packaging of the Company'sproducts, new products development and training of personnel.

The agreements specify that a charge of 2% of the turnover of the products produced and sold by FrieslandFoods Wamco Nigeria Plc for royalty and research & development know-how licence (1% each), and 2% ofannual profit before tax in respect of technical service agreement.

The agreements are made with the approval of the National Office for Technology Acquisition and Promotion(NOTAP).



21


16. DonationsThe following donations were made during the year:

=N=Charity donationsCharity donationsCharity donationsCharity donationsCharity donationsMotherless Babies Home, Uzuakoli, Abia State 160,000.00SDA Motherless Home, Aba, Abia State 160,000.00Besthsida Orphange, Ikachi, Benue State 150,000.00Bert Torey Home for mentally handicapped children, Zaria Kaduna State 150,000.00Child Care Trust Abuja 150,000.00Hope Worldwide Ikorodu Road, Lagos 150,000.00Little Saints of the Poor, Enugu, Enugu State 150,000.00Madonna School for the Handicapped, Okpanam, Delta State 150,000.00Franciscan Sisters of Immaculate, Lekki, Lagos 150,000.00Marble House of Sarah Charity Home, Ibusa, Delta State 150,000.00Old Peoples Home, Yaba, Lagos 150,000.00Oluyole Cheshire Home, Ibadan, Oyo State 150,000.00Our Lady of Lourdes Maternity & Clinic, Ipetunmodu, Osun State 150,000.00Our Lady's Hospital & Orphanage, Zawan, Plateau State 150,000.00Samaritan Project, Ebute-Metta, Lagos 150,000.00Red Cross Yaba, Lagos 150,000.00SOS Children's Village, Isolo, Lagos 100,000.00Little Saints Orphanage, Ikorodu, Lagos 100,000.00Kanu Heart Foundation, Surulere, Lagos 100,000.00Heart of Gold Orphanage, Surulere, Lagos 100,000.00Marian Monastery, Enugu State 100,000.00Dominican Sisters' College Abatete, Anambra State 100,000.00

Water PojectWater PojectWater PojectWater PojectWater PojectCommunity Solar Borehole - Ondo 4,700,000.00Community Solar Borehole - Bauchi 4,700,000.00Maintenance of Existing Boreholes 4,000,000.00Community Borehole - Oyo 2,500,000.00

EducationEducationEducationEducationEducationSchool Adoption Project - see list of 18 schools on CSR page 4,300,740.00University of Ibadan - Food Science & Technology Department 275,000.00University of Maiduguri - Food Science & Technology Department 275,000.00University of Nigeria Nsukka - Food Science & Technology Department 275,000.00University of Uyo- Food Science & Technology Department 275,000.00Federal University of Tech. Minna- Dept of Animal Production 275,000.00Federal University of Tech. Yola - Dept of Food Science and Technology 275,000.00

TTTTTotalotalotalotalotal 24,870,740.0024,870,740.0024,870,740.0024,870,740.0024,870,740.00

The Company in 2008 also spent the sum of =N=16,000,000 on Vitamin A enlightenment campaign , this amountis not included in the list of donations.

17. AuditorsMessrs. Akintola Williams Deloitte, having expressed their willingness, will continue in office as Auditors of theCompany in accordance with section 357(2) of the Companies and Allied Matters Act, CAP C20, LFN 2004.

A resolution will be proposed at the Annual General Meeting to authorize the Directors to fix their remuneration.

BY ORDER OF THE BOARD

Ramat Ramat Ramat Ramat Ramat TTTTTosin osin osin osin osin YYYYYusuf (Mrusuf (Mrusuf (Mrusuf (Mrusuf (Mrs)s)s)s)s)Company Secretary

Lagos, Nigeria26 February 2009


22

report of the audit committeeto the members of Friesland Foods WAMCO Nigeria PLC

In accordance with section 359(4) and (6) of the Companies And Allied Matters Act , CAP C20, LFN 2004, we confirmthat we have examined the Auditors' Report for the accounting year ended 31 December, 2008 and hereby declare asfollows:

1. The scope and planning of the audit were adequate in our opinion.

2. The accounting and reporting policies of the company conformed with legal requirements and agreed ethicalpractices.

3. The internal control was being constantly and effectively monitored.

4. The external auditors' management report received satisfactory response from the management.

5. The external auditors confirmed receiving full co - operation from the company's management and that thescope of their work was not restricted in any way.

We acknowledge the cooperation of management in the conduct of our responsibilities.

Mr. S.S. AdebayoChairman, Audit CommitteeLAGOS, NIGERIA.

19 February, 2009

MEMBERS OF THE AUDIT COMMITTEEMr. S.S. AdebayoSir. S. N. NwosuMr. O. G. EmodiMr. T. C.A.SpieringsMs. E.N. Oputu OONMr. I. A. Agoye

report of the independent auditorsto the members of Friesland Foods WAMCO Nigeria PLC

We have audited the accompanying financial statements of FFFFFrrrrriesland Fiesland Fiesland Fiesland Fiesland Foods oods oods oods oods WWWWWamco Nigamco Nigamco Nigamco Nigamco Nigerererereria Plcia Plcia Plcia Plcia Plc,,,,, as at 31 December2008 set out on pages 24 to 39 which have been prepared on the basis of the significant accounting policies on pages24 and 25 and other explanatory notes on pages 29 to 37.

Directors' Responsibility for the Financial StatementsThe Directors are responsible for the preparation and fair presentation of these financial statements in accordancewith the Companies and Allied Matters Act, CAP C20, LFN 2004. This responsibility includes: designing, implementingand maintaining internal control relevant to the preparation and fair presentation of financial statements that arefree from material misstatement, whether due to fraud or error; selecting and applying appropriate accountingpolicies; and making accounting estimates that are reasonable in the circumstances.

Auditors' ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our auditin accordance with International Standards on Auditing. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditors' judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,the auditors consider internal control relevant to the entity's preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates made by Directors, aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.

OpinionIn our opinion, the Company has kept proper accounting records and the financial statements are in agreement withthe records in all material respects and give in the prescribed manner, information required by the Companies andAllied Matters Act, CAP C20, LFN 2004. The financial statements give a true and fair view of the financial position ofFFFFFrrrrriesland Fiesland Fiesland Fiesland Fiesland Foods oods oods oods oods WWWWWamco Nigamco Nigamco Nigamco Nigamco Nigerererereria Plcia Plcia Plcia Plcia Plc as at 31 December 2008, and of its financial performance and cash flows for theyear then ended in accordance with the Statements of Accounting Standards issued by the Nigerian AccountingStandards Board.

Chartered AccountantsLagos, Nigeria

26 February 2009


24

The following are the significant accounting policies which have been adopted by the company in the preparation ofits financial statements:

a. Basis of accountingThe financial statements are prepared on the historical cost convention modified to include the revaluation ofland, buildings and plant and machinery.

b. TurnoverTurnover represents the net value of goods sold to third parties during the year.

c. Fixed assetsFixed assets are stated at cost or valuation less accumulated depreciation.

d. DepreciationDepreciation is not provided on assets under construction. Depreciation is provided on a straight line basis towrite off the cost/valuation of fixed assets over their expected useful lives at the following annual rates:

%Leasehold land and buildings - 4Plant and machinery - 10Furniture, fittings and tools - 20Motor vehicles - 20Market kiosks - 20

e. DebtorsThese are stated after the deduction of specific provisions for debts considered to be doubtful of collection.

f. TaxationIncome and education taxes payable are provided on taxable profits at the current statutory rate.

g. StocksStocks are valued at the lower of cost and net realizable value after making allowance for obsolete or slowmoving items. Cost of stocks includes purchase cost, conversion cost and other costs incurred in bringinginventory to its present location and condition.

h. Foreign currenciesTransactions arising in foreign currencies are recorded in Naira at the approximate rates of exchange ruling atthe time they arise. Assets and liabilities existing in foreign currencies are converted to Naira at the exchangerate applicable at the balance sheet date. Gains and losses arising there from are included in the profit and lossaccount.

i. Deferred taxationDeferred taxation is provided by the liability method at the ruling tax rate on the timing differences betweenthe treatment of certain items for accounting purposes and their treatment for taxation in accordance with theprovision of Statement of Accounting Standards (SAS 19).

significant accounting policiesfor the year ended 31 december 2008


25

j. Retirement benefit and gratuity schemeThe Company makes provision for retirement benefits in accordance with the Pension Reform Act 2004.Contribution to the scheme is based on 7.5% of the relevant emoluments by employee, while employercontributes 10.5%.

The Company also operates a staff gratuity scheme, which is fully provided for as a liability in the financialstatements. Benefits payable to employees on retirement or resignation are accrued on the service life of theemployees concerned based on current salary. However, the scheme was changed in the current year fromretroactive to annualized defined benefit plan and current year provision was made on this basis. Furthermore,in compliance with the provisions of SAS 8, the scheme is now being funded by the Company through cashbacking in fixed deposit accounts with banks.

k. ProvisionsProvision is recognized when the Company has a present obligation whether legal or constructive, as a result ofa past event for which it is probable that an outflow of resources embodying economic benefits will be requiredto settle the obligation and a reliable estimate can be made of the amount of the obligation in accordance withSAS 23.

l. Government grants Government grants are only recognized in the books when received.

significant accounting policies year ended 31 december 2008


26

profit and loss accountfor the year ended 31 december 2008

20082008200820082008 2007Note =====NNNNN='000='000='000='000='000 =N='000

Turnover 2 62,173,083 49,653,609

Cost of sales (53,112,182) (41,057,665)

Gross profit 9,060,901 8,595,944

Administrative expenses (3,275,705) (3,592,416)

Other income 3 376,433 277,155

Operating profit 6,161,629 5,280,683

Interest Income 641,205 384,218Interest payable and similar charges (24,678) (5,206)

Profit before taxation 4 6,778,156 5,659,695

Taxation 5 (2,205,940) (1,858,483)

Profit after taxation transferred to revenue reserve 15 4,572,216 3,801,212

Earnings per share (Naira) - basic 11.71 9.73

The accounting policies on pages 24 and 25 and the explanatory notes on pages 29 to 37 form part of these financialstatements.


27

20082008200820082008 2007Note =====NNNNN='000='000='000='000='000 =N='000

FIXED FIXED FIXED FIXED FIXED ASSETSASSETSASSETSASSETSASSETS 6 4,050,378 3,080,874

CURRENT CURRENT CURRENT CURRENT CURRENT ASSETSASSETSASSETSASSETSASSETSStocks 7 9,024,751 10,150,060Debtors and prepayments 8 1,210,714 1,631,667Short term deposits 9 9,189,025 3,554,898Bank and cash balances 1,127,040 548,544

20,551,530 15,885,169

CREDITCREDITCREDITCREDITCREDITORS:ORS:ORS:ORS:ORS: Amounts fAmounts fAmounts fAmounts fAmounts falling due within one yearalling due within one yearalling due within one yearalling due within one yearalling due within one yearTrade creditors 8,820,434 6,233,445Other creditors 10 2,978,672 1,855,438Amounts due to associated companies 11 1,386,108 540,747Taxation 5 2,048,079 1,864,140

15,233,293 10,493,770

NET NET NET NET NET CURRENT CURRENT CURRENT CURRENT CURRENT ASSETSASSETSASSETSASSETSASSETS 5,318,237 5,391,399

TTTTTOOOOOTTTTTAL AL AL AL AL ASSETS LESS ASSETS LESS ASSETS LESS ASSETS LESS ASSETS LESS CURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIES 9,368,615 8,472,273Deferred Taxation 12 (390,032) (231,824)

PRPRPRPRPROOOOOVISION FOR LIABILITIES VISION FOR LIABILITIES VISION FOR LIABILITIES VISION FOR LIABILITIES VISION FOR LIABILITIES AND AND AND AND AND CHARGESCHARGESCHARGESCHARGESCHARGESEmployees' gratuities 13 (1,395,461) (1,249,998)

NET NET NET NET NET ASSETSASSETSASSETSASSETSASSETS 7,583,122 6,990,451

CCCCCAPITAPITAPITAPITAPITAL AL AL AL AL AND RESERAND RESERAND RESERAND RESERAND RESERVESVESVESVESVESShare capital 14 390,535 390,535Share premium 350,211 350,211Fixed assets revaluation reserve 147,615 147,615Revenue reserve 15 6,694,761 6,102,090

7,583,122 6,990,451

The financial statements on pages 24 to 39 were approved by the Board of Directors on 26 February 2009 and signed onits behalf by:

_______________________________________ }LLLLLt t t t t Gen.Gen.Gen.Gen.Gen. (R (R (R (R (Rtd.) td.) td.) td.) td.) TTTTT..... YYYYY..... Danjuma Danjuma Danjuma Danjuma Danjuma GCGCGCGCGCONONONONON } Directors

}}

_______________________________________ }Mr. Kapil GargMr. Kapil GargMr. Kapil GargMr. Kapil GargMr. Kapil Garg }

The accounting policies on pages 24 and 25 and the explanatory notes on pages 29 to 37 form part of these financialstatements.

balance sheetas at 31 december 2008


28

statement of cash flowsfor the year ended 31 december 2008

20082008200820082008 2007Note =====NNNNN='000='000='000='000='000 =N='000

Cash flows from operating activitiesCash flows from operating activitiesCash flows from operating activitiesCash flows from operating activitiesCash flows from operating activitiesCash receipts from customers 64,826,104 50,009,202Cash payments to suppliers and employees (51,851,872) (42,392,439)

Cash generated from operations 12,974,232 7,616,763Taxes paid 5 (1,863,793) (1,803,762)Gratuity paid 13 (61,272) (48,234)

Net cash provided by operating activities 16 11,049,167 5,764,767

Cash flows from investing activitiesCash flows from investing activitiesCash flows from investing activitiesCash flows from investing activitiesCash flows from investing activitiesInterest received 641,205 384,218Purchase of fixed assets 6 (1,492,072) (688,943)Proceeds from sale of fixed assets 18,546 27,534

Net cash provided by investing activities (832,321) (277,191)

Cash flows from financing activitiesCash flows from financing activitiesCash flows from financing activitiesCash flows from financing activitiesCash flows from financing activitiesInterest paid (24,678) (5,206)Dividend (3,979,545) (4,569,013)

Net cash provided by financing activities (4,004,223) (4,574,219)

Net increase in cash and cash equivalentsNet increase in cash and cash equivalentsNet increase in cash and cash equivalentsNet increase in cash and cash equivalentsNet increase in cash and cash equivalents 6,212,623 913,357Cash and cash equivalents at 1 JanuaryCash and cash equivalents at 1 JanuaryCash and cash equivalents at 1 JanuaryCash and cash equivalents at 1 JanuaryCash and cash equivalents at 1 January 4,103,442 3,190,085

Cash and cash equivalents at 31 DecemberCash and cash equivalents at 31 DecemberCash and cash equivalents at 31 DecemberCash and cash equivalents at 31 DecemberCash and cash equivalents at 31 December 17 10,316,065 4,103,442


29

notes to the financial statementsfor the year ended 31 december 2008

1. The Companya.a.a.a.a. Legal FormLegal FormLegal FormLegal FormLegal Form

Friesland Foods WAMCO Nigeria Plc was incorporated as a private limited liability company on 17 April 1973and became a public limited liability Company in 1978 and commenced operation on 13 September 1975.

b.b.b.b.b. PrPrPrPrPrincipal incipal incipal incipal incipal AAAAActivitiesctivitiesctivitiesctivitiesctivitiesThe Company principally engages in the manufacturing and marketing of evaporated milk, instant milkpowder and other dairy products.

2. TurnoverThe analysis of turnover and profit before taxation by activity and geographical areas:

20082008200820082008 2007TTTTTurnovurnovurnovurnovurnovererererer Profit beforeProfit beforeProfit beforeProfit beforeProfit before Turnover Profit before

taxationtaxationtaxationtaxationtaxation taxation=====NNNNN='000='000='000='000='000 =NNNNN='000='000='000='000='000 =N='000 =N='000

ActivityActivityActivityActivityActivityi)i)i)i)i) Longlife Milk ProductsLonglife Milk ProductsLonglife Milk ProductsLonglife Milk ProductsLonglife Milk Products 62,173,083 6,778,156 49,653,609 5,659,695

ii)ii)ii)ii)ii) Geographical areaGeographical areaGeographical areaGeographical areaGeographical areaLocal 62,087,839 6,761,307 49,653,609 5,659,695Export to otherWest African Countries 85,244 16,849 - -

62,173,083 6,778,156 49,653,609 5,659,695

20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

3. Other IncomeScrapped items sold 313,218 192,697Insurance compensations 26,413 45,949Export grant - 38,509Provision no longer required 23,796 -Profit/(loss) on sale of fixed assets 13,006 -

376,433 277,155

In 2007 export grant relates to amount received from Federal Government of Nigeria on account for exports madein prior years.


30

notes to the financial statementsyear ended 31 december 2008

20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

4. Profit before taxationThis is arrThis is arrThis is arrThis is arrThis is arrivivivivived at after ced at after ced at after ced at after ced at after charharharharharggggginginginginging/(cr/(cr/(cr/(cr/(creditingeditingeditingeditingediting)))))Depreciation of fixed assets 515,174 488,752Directors' emoluments 18,639 15,358Auditors' remuneration 9,500 8,500Technical Assistance Royalty fees (Note 11) 1,002,079 524,625Foreign exchange loss 97,656 13,094(Profit)/ loss on disposal of fixed assets (13,006) 12,086

5. TaxationProfit and loss accountProfit and loss accountProfit and loss accountProfit and loss accountProfit and loss accountIncome tax charge at 30% based on thetotal profit for the year 1,896,054 1,736,048Education tax at 2% of assessable profit 152,025 128,092(over)/under provision in prior years (347) 20,900

2,047,732 1,885,040Deferred taxation (Note 12) 158,208 (26,557)

2,205,940 1,858,483

Balance sheetBalance sheetBalance sheetBalance sheetBalance sheetAt 1 January 1,864,140 1,782,862Charge for the year 2,047,732 1,885,040Payments during the year (1,863,793) (1,803,762)

At 31 DecemberAt 31 DecemberAt 31 DecemberAt 31 DecemberAt 31 December 2,048,079 1,864,140


31

notes to the financial statements year ended 31 december 2008

6. Fixed AssetsLeaseholdLeaseholdLeaseholdLeaseholdLeasehold FFFFFurnitururnitururnitururnitururniture,e,e,e,e, CapitalCapitalCapitalCapitalCapitalLand andLand andLand andLand andLand and Plant andPlant andPlant andPlant andPlant and MotorMotorMotorMotorMotor FittingsFittingsFittingsFittingsFittings MarketMarketMarketMarketMarket work inwork inwork inwork inwork inBuildingsBuildingsBuildingsBuildingsBuildings MachineryMachineryMachineryMachineryMachinery VVVVVehiclesehiclesehiclesehiclesehicles and and and and and TTTTToolsoolsoolsoolsools KiosksKiosksKiosksKiosksKiosks progressprogressprogressprogressprogress TTTTTotalotalotalotalotal

=====NNNNN='='='='='000000000000000 =====NNNNN='='='='='000000000000000 =====NNNNN='='='='='000000000000000 =====NNNNN='='='='='000000000000000 =====NNNNN='='='='='000000000000000 =====NNNNN='='='='='000000000000000 =====NNNNN='='='='='000000000000000

Cost or valuationAt 1 January 2008 1,056,772 3,781,976 553,556 135,661 119,629 309,433 5,957,027Additions 303,397 295,869 196,183 36,971 - 659,652 1,492,072Disposals (193) (19,904) (98,973) - - - (119,070)Adjustments (28,266) - (3,370) - - - (31,636)

At 31 December 2008 1,331,710 4,057,941 647,396 172,632 119,629 969,085 7,298,393

DepreciationDepreciationDepreciationDepreciationDepreciationAt 1 January 2008 312,452 1,970,717 366,280 110,015 116,689 - 2,876,153Charge for the year 46,969 387,767 67,342 10,161 2,935 - 515,174Disposals (192) (19,865) (93,473) - - - (113,530)Adjustments (28,266) - (1,516) - - - (29,782)

At 31 December 2008 330,963 2,338,619 338,633 120,176 119,624 - 3,248,015

Net book valueNet book valueNet book valueNet book valueNet book valueAt 31 December 2008 1,000,747 1,719,322 308,763 52,456 5 969,085 4,050,378

At 31 December, 2007 744,320 1,811,259 187,276 25,646 2,940 309,433 3,080,874

Leasehold land and buildings and plant and machinery were revalued by Messrs. Okolo and Okolo Associates, CharteredSurveyors and Valuers at 30 September 1992 based on mortgage valuers. They are stated at that valuation plussubsequent additions at cost.

20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

7. StocksRaw materials 1,702,167 2,477,355Finished goods 2,794,255 2,641,924Goods in transit 4,295,533 4,669,337Spare parts and tools 232,796 361,444

9,024,751 10,150,060


32


20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

8. Debtors and prepaymentsTrade debtors 170,354 1,002,454Less:- provision for bad debts (31,341) (44,122)

139,013 958,332Other debtors 924,884 538,206Retail Driven Distribution vehicles loan 17,388 43,605Prepayments 129,429 91,524

1,210,714 1,631,667

9. Short - term depositsShort term deposits with banks 7,904,814 3,554,898Staff gratuity deposits 1,284,211 -

9,189,025 3,554,898

10. Other creditorsOther creditors 131,519 142,243Distributors payment in advance 1,597,327 127,052Accruals 1,249,826 1,586,143

2,978,672 1,855,438


33

11. Amount due to Associated CompaniesThe Company has technical and management services agreement with Friesland Brands B.V., in the Netherlands.Technical Assistance Royalty fees are computed as a percentage of profit before tax while royalties payable arecomputed as a percentage of net sales of the related products.

In addition to the existing agreement, the Company entered into Research and Development Know-How Licenceagreement with Friesland Foods B.V. in 2008 in order to potentially bring new innovations to Nigerian market.

The agreements are made with the approval of the National Office of Technological Acquisition and Promotion(NOTAP) and payments are made to Friesland Brands B.V.

The Company also entered into transactions with Friesland Foods B.V., for the purchase of finished products, rawmaterials, spare-parts, etc.

The amount due to associated companies is analysed below:

20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

Friesland Brands B.V. 643,673 307,560Friesland Foods B.V. 742,435 233,187

1,386,108 540,747

12.12.12.12.12. Deferred taxationDeferred taxationDeferred taxationDeferred taxationDeferred taxation At 1 January 231,824 258,381Movement in the year (Note 5) 158,208 (26,557)

At 31 December 390,032 231,824

13. Employees’ gratuitiesAt 1 January 1,249,998 1,069,955Provisions made during the year 181,920 228,277Interest on deposits 24,815 -Payments during the year (61,272) (48,234)

At 31 December 1,395,461 1,249,998

14. Share Capital AAAAAuthoruthoruthoruthoruthorisedisedisedisedised500,000,000 Ordinary shares of =N=1.00 each 500,000 500,000

Issued and fully paidIssued and fully paidIssued and fully paidIssued and fully paidIssued and fully paid390,534,375 Ordinary shares of =N=1.00 each 390,535 390,535



34

20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

15. Revenue ReserveAt 1 January 6,102,090 6,869,891Retained for the year 4,572,216 3,801,212

10,674,306 10,671,103Prior year final dividend paid (2,749,362) (3,518,474)Interim dividend for the year paid (1,230,183) (1,050,539)

(3,979,545) (4,569,013)

At 31 December 6,694,761 6,102,090

On 23 April 2008, the shareholders declared a final dividend of =N=7.04 per share amounting to =N=2,749,362,000during the Annual General Meeting. This amount was paid on 23 April 2008 to the shareholders whose names wereregistered in the company's register of members at close of business on 21 April 2008.

In respect of current year, interim dividend of =N=1,230,183,281 (2007 - =N=1,050,539,469) translating to =N=3.15 perordinary share (2007 - =N=2.69) was paid during the year as shown above. In addition, the Directors are proposingthat final dividend of =N=11.48 per ordinary share will be paid to shareholders. This dividend is subject to approval byshareholders at the Annual General Meeting and has not been included as a liability in these financial statements.Dividends to shareholders are now accounted for on the date of declaration, as they do not meet the criteria ofpresent obligation in the Statements of Accounting Standard (SAS) 23. The proposed dividend is subject to deductionof withholding tax at the appropriate rate. The total estimated final dividend to be paid if approved is =N=4,483,334,625(2007 - =N=2,749,362,000).

The total of the interim and final dividends will amount to =N=5,713,517,906 (2007 - =N=3,799,899,469) and this willtranslate to =N=14.63 per share (2007 - =N=9.73).



35


20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

16. Reconciliation of net income to net cashprovided by operating activities:

Profit after taxation 4,572,216 3,801,212

Adjustments to reconcile net income to net cashAdjustments to reconcile net income to net cashAdjustments to reconcile net income to net cashAdjustments to reconcile net income to net cashAdjustments to reconcile net income to net cashprovided by operating activitiesprovided by operating activitiesprovided by operating activitiesprovided by operating activitiesprovided by operating activitiesDepreciation 515,174 488,752Interest received (641,205) (384,218)Interest paid 24,678 5,206(Profit)/ Loss on sale of fixed assets (13,006) 12,086

Changes in assets and liabilitiesChanges in assets and liabilitiesChanges in assets and liabilitiesChanges in assets and liabilitiesChanges in assets and liabilitiesDecrease/(increase) in stocks 1,125,309 (4,480,454)Decrease/(increase) in debtors and prepayment 420,953 (16,545)Decrease in foreign currencies purchased for imports - 1,027Increase in trade creditors 2,586,989 5,222,485Increase in other creditors 1,123,234 639,867Increase in due to associated company 845,361 240,585Increase in taxation 183,939 81,278Increase/(decrease) in deferred taxation 158,208 (26,557)Increase in gratuity 145,463 180,043Net reclassification of fixed assets 1,854 -

Total adjustments 6,476,951 1,963,555

Net cash provided by operating activities 11,049,167 5,764,767

17. Cash and cash equivalentsCash and bank balances 1,127,040 548,544Short term deposits 9,189,025 3,554,898

10,316,065 4,103,442


36

20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

18. Information regarding Directors and employees

18.1 Chairman’s and Directors’ remunerationEmoluments :Chairman 275 275Other non executive directors 1,400 1,225Executive directors 16,964 13,858

18,639 15,358

The number of Directors excluding the Chairman withgross emoluments within the bands stated below were:

=N= =N= Number Number180,001 - 200,000 8 75,000,000 - 7,000,000 - 17,000,001 - 8,000,000 1 -8,000,001 - 9,000,000 1 1

18.2 EmployeesThe number of persons in the Company'semployment during the year :Management 19 21Senior 192 185Junior 515 462

726 668

20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

Aggregate payroll costs:Wages, Salaries, Allowances and other benefits 2,662,193 2,525,657Pension cost 101,357 89,535

2,763,550 2,615,192



37

The number of employees with emoluments,excluding allowances and retirement benefitswithin the bands stated below are:

=N= =N= Number Number360,001 - 410,000 - 9410,001 - 460,000 31 37460,001 - 510,000 40 31510,001 - 560,000 20 40560,001 - 610,000 35 221610,001 - 660,000 16 22660,001 - 710,000 154 21710,001 - 760,000 106 52760,001 - 810,000 18 33810,001 - 860,000 38 33890,001 and above 268 169

726 668

19. Unclaimed dividendsThere are unclaimed dividends due to local shareholders amounting to =N=90, 557,258 as at 31 December 2008(2007 - =N=28,616,340) represented by cash at bank, which have not been incorporated in these financialstatements.

As at 11 February 2009 unclaimed dividends due to local shareholders amounted to =N=79,266,740.49.

20. Post Balance Sheet eventThere was no event which had occurred after the balance sheet date, which require disclosure in the financialstatements.

21. Contingent liabilities and financial commitmentsThere are contingent liabilities for guarantees to banks in respect of:

20082008200820082008 2007=====NNNNN='000='000='000='000='000 =N='000

a) Staff car loans 26,230 29,642b) Staff housing loans 144,229 124,894c) Customs bond 9,827 14,933

The approved contracted capital expenditure already committed as at balance sheet date was =N=617 Million (2007-=N=145 Million).

22. Comparative figuresCertain comparative balances have been reclassified to provide a more meaningful comparison.



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statement of value addedfor the year ended 31 december 2008

20082008200820082008 2007=====NNNNN='000='000='000='000='000 % =N='000 %

Turnover 62,173,083 49,653,609Other income 376,433 277,155

62,549,516 49,930,764Less:Less:Less:Less:Less: Bought in products and services:

- Imported (8,792,100) (7,034,103)- Local (43,675,858) (34,127,816)

VVVVValue alue alue alue alue AAAAAddedddedddedddeddded 10,081,558 100 8,768,845 100

Applied as followsApplied as followsApplied as followsApplied as followsApplied as follows

TTTTTo pao pao pao pao pay employ employ employ employ employeesyeesyeesyeesyeesSalaries, wages and other benefits 2,763,550 27 2,615,192 30

TTTTTo pao pao pao pao pay pry pry pry pry providerovideroviderovideroviders os os os os of capitalf capitalf capitalf capitalf capitalInterest on bank overdraft 24,678 - 5,206 -

TTTTTo pao pao pao pao pay gy gy gy gy govovovovovernmenternmenternmenternmenternmentTaxation 2,047,732 20 1,885,040 21

TTTTTo pro pro pro pro provide fovide fovide fovide fovide for enhancementor enhancementor enhancementor enhancementor enhancementof assets, dividend and growthof assets, dividend and growthof assets, dividend and growthof assets, dividend and growthof assets, dividend and growthDeferred taxation 158,208 2 (26,557) -Depreciation of fixed assets 515,174 5 488,752 6Profit and loss 4,572,216 45 3,801,212 43

10,081,558 100 8,768,845 100

NoteNoteNoteNoteNote"Value added" represents the additional wealth the company has been able to create by its own and employees' efforts.This statement shows the allocation of that wealth between employees, capital providers, government and that retainedfor future creation of more wealth.


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five-year financial summary

20082008200820082008 2007 2006 2005 2004=====NNNNN='000='000='000='000='000 =N='000 =N='000 =N='000 =N='000

BALANCE SHEETBALANCE SHEETBALANCE SHEETBALANCE SHEETBALANCE SHEET

ASSETS EMPLOYEDASSETS EMPLOYEDASSETS EMPLOYEDASSETS EMPLOYEDASSETS EMPLOYEDFixed assets 4,050,378 3,080,874 2,920,302 2,886,554 2,415,751Current assets 20,551,530 15,885,169 10,348,788 7,914,197 6,652,011Current liabilities (15,233,293) (10,493,770) (3,861,517) (2,519,263) (2,826,552)

9,368,615 8,472,273 9,407,573 8,281,488 6,241,210

LONG LONG LONG LONG LONG TERM LIABILITIESTERM LIABILITIESTERM LIABILITIESTERM LIABILITIESTERM LIABILITIESAND PROVISIONSAND PROVISIONSAND PROVISIONSAND PROVISIONSAND PROVISIONSEmployees' gratuities (1,395,461) (1,249,998) (1,069,954) (1,065,899) (260,325)Deferred taxation (390,032) (231,824) (579,367) (306,549) (473,727)

7,583,122 6,990,451 7,758,252 6,909,040 5,507,158

FINANCED BYFINANCED BYFINANCED BYFINANCED BYFINANCED BYShare capital 390,535 390,535 390,535 312,428 312,428Share premium 350,211 350,211 350,211 350,211 350,211Reserve for bonus share - - - 78,107 -Revaluation reserve 147,615 147,615 147,615 147,615 147,615Revenue reserve 6,694,761 6,102,090 6,869,891 6,020,679 4,696,904

SHAREHOLDERS' FUNDSSHAREHOLDERS' FUNDSSHAREHOLDERS' FUNDSSHAREHOLDERS' FUNDSSHAREHOLDERS' FUNDS 7,583,122 6,990,451 7,758,252 6,909,040 5,507,158

PRPRPRPRPROFIT OFIT OFIT OFIT OFIT AND LOSS AND LOSS AND LOSS AND LOSS AND LOSS AAAAACCCCCCCCCCOUNTOUNTOUNTOUNTOUNTTurnover 62,173,083 49,653,609 41,995,268 36,280,883 29,541,000

Profit before taxation andexceptional item 6,778,156 5,659,695 5,654,998 3,865,103 3,594,000

Exceptional item - - (203,660) - -

Taxation (2,205,940) (1,858,483) (1,731,084) (1,211,781) (1,219,000)

Profit after taxation 4,572,216 3,801,212 3,720,254 2,653,322 2,375,000Reserve for bonus issue - - - (78,107) -

Transfer to revenue reserve 4,572,216 3,801,212 3,720,254 2,575,215 2,375,000

PER SHARE DPER SHARE DPER SHARE DPER SHARE DPER SHARE DAAAAATTTTTA (N1.00 per sharA (N1.00 per sharA (N1.00 per sharA (N1.00 per sharA (N1.00 per share)e)e)e)e)Earnings (basic) 11.71 9.73 9.53 8.24 7.60Earnings (diluted) - - - 6.59 6.08Net assets 19.42 17.90 19.87 22.11 17.63

Note:Note:Note:Note:Note:Earnings per share are based on the profit after taxation and the number of issued and fully paid ordinary shares at theend of each financial year.

Net assets per share are based on the net assets and the number of issued and fully paid ordinary shares at the end ofeach financial year.

31 december31 december31 december31 december31 december


40

Proxy Card

36th Annual General Meeting of Friesland Foods WAMCO Nigeria PLC to be held at the Shell Hall, MUSON Centre, 8/9Marina, Onikan, Lagos on Wednesday 29 April 2009 at 11:00 a.m.*I/We

being a member/members of Friesland Foods WAMCO Nigeria PLC hereby appoint

Chief/MrMrs

of

or Chief/Mr/Mrs

of as my/our

Proxy to vote for me/us and act on my /our behalf at the Annual General Meeting of the company to be held on April 23,2009 and at any adjournment thereof.

Dated this day of 2009

Signature

NOTE:NOTE:NOTE:NOTE:NOTE:Executed cards of the proxy duly stamped by the Commissioner of Stamp Duties should be deposited with the Registrar,FFFFFiririririrst Rst Rst Rst Rst Regegegegegistristristristristrararararars Nigs Nigs Nigs Nigs Nigerererereria Limited,ia Limited,ia Limited,ia Limited,ia Limited, Plot 2, Plot 2, Plot 2, Plot 2, Plot 2, Abebe Abebe Abebe Abebe Abebe VVVVVillagillagillagillagillage Re Re Re Re Road,oad,oad,oad,oad, Ig Ig Ig Ig Iganmanmanmanmanmu,u,u,u,u, Lag Lag Lag Lag Lagososososos not later than 48 hours before the time forholding the meeting. If payment of dividend is approved, the cheques will be issued at the venue of the meeting. Chequeswill be given to shareholders identified by either their Driver’s License or International Passport. A representative of aCorporate Shareholder will present a letter on the company’s letter headed paper, signed and sealed. Under nocircumstance will dividend cheques be handed over to proxies.

Admission SlipAdmission SlipAdmission SlipAdmission SlipAdmission Slip

FRIESLFRIESLFRIESLFRIESLFRIESLAND FOAND FOAND FOAND FOAND FOODS ODS ODS ODS ODS WWWWWAMCAMCAMCAMCAMCO NIGERIA PLCO NIGERIA PLCO NIGERIA PLCO NIGERIA PLCO NIGERIA PLC

36th Annual General Meeting of Friesland Foods WAMCO Nigeria PLC to be held at the Shell Hall, MUSON Centre, 8/9Marina, Onikan, Lagos on Wednesday 29 April 2009 at 11:00 a.m.

Name of Shareholder Number of shares held

Name of person attending Signature

IMPIMPIMPIMPIMPORORORORORTTTTTANTANTANTANTANTThis admission slip must be produced by the shareholder or his Proxy who need not be a member of the company, to gainentrance to the Annual General Meeting.

Shareholders or their Proxies are requested to sign the admission slip before attending the meeting.

FRIESLAND FOODS WAMCO NIGERIA PLC (RC 11330)

ourproducts

I see true innovation to be madeup of three elements which I callthe three creativities. Creativity intechnology of course, pluscreativity in product planning andmarketing as well- Akio Morita.

“

”


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Peak 123 Growing Up Milk

Introduced a new 28g single servingaffordable sachet.New attractive design and an upgradedrecipe.Rich & Creamy Milk Powder.Quality at an Affordable Price of =N =30/sachet.Extra fortified with DHA for proper braindevelopment.Contains 28 Vitamins and Minerals.

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The new Peak Choco was launched into the market inNovember 2008. The event took place within thecompany’s premises and it attracted celebrities fromboth the Movie & Music industries.

Is made from Extra Fortified Peak Milk, whichcontains 28 Vitamins & Minerals for stronger bodies& sharper minds. It is Rich & Creamy. An attributesynonymous with Peak.

Contains REAL Cocoa for Energy .

Sweetened with just the right amount of Sugar.

Dissolves instantly in Hot or Cold Water .

Quality at an Affordable Price @ =N =25 per sachet.

Peak Introduces Peak Choco ... The Perfect Tea!

FRISO Gold in WAMCO!

Friesland Foods WAMCO commenced sale of Friso Gold range through Far East Mercantile Limited (FEMCL) inJanuary.

Friso Gold is a super premium brand manufactured in Holland. It is an upgraded recipe with a more attractivedesign to replace Frisolac H and Frisocream.

Friso Gold 1 Infant formula is for babies 0-6months. The formula has been upgraded and now containsessential fatty acids DHA & ALA (Docosahexaenoic acid and Alphalinoleic acid) which are very important forbrain development and vision improvement.

Friso Gold Rice and wheat cereals are good weaning foods for babies from 6 months onwards. It containssufficient amount of energy and high quality Protein for good growth.

Friso Gold is available in retail outlets nationwide.

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Three Crownsstepped out in style!

Three Crowns branded BRT buses in Lagos State in 2008 to enhance brand visibility.These buses ply the ever-busy Mile 12 route through Ikorodu road to CMS daily.

touchinglives

I expect to pass through life butonce. If therefore, there be anykindness I can show, or any goodthing I can do to any fellow being,let me do it now and not defer orneglect it as I shall not pass thisway again- William Penn. ”

“

Solar Water projectFriesland Foods WAMCO Nigeria PLC has gone a step further toconstruct a fusion of science and nature towards providing more oflife's most essential necessity - Water.

In the year 2008, our CSR projecttook a remarkable turn. Weconstructed 3 water projects ofwhich 2 are solar powered. Theprojects include:

Moniya water project in OyoState (donated by DouweTamminga, former ManagingDirector Friesland FoodsButter)

Ikare solar water project inOndo State

Fabon Kaura solar waterproject in Bauchi State

The advantages of the solar systeminclude but not limited to thefollowing:

Requires little or nomaintenance. This makes theproject economically friendly tothe communitiesIt's reliable- as long as there isdaytime

The solar system isenvironmentally friendly

Our other existing 18 water projectsare still given intensivemaintenance yearly. Plans areunderway to gradually convert theother generator powered waterprojects to solar from 2009 tomaintain efficiency.

In all, a total of 21 water projectshave been commissioned so far.


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Solar water project Ikare, Ondo State.

School AdoptionProjectThe 18 schools adopted wereserviced in the year. No newschools were adopted.

As a corporate organization abreastwith the global need to consistentlyadvance in IT knowledge, FrieslandFoods WAMCO Nigeria has movedfurther to provide more computersets and colored printers to theseschools to help update theirknowledge and use of IT hardwaresand accessories.

Other school pupils also had theopportunity to experience first hand,our operating processes duringfactory tours in the company.

Moving ForwardFriesland Foods WAMCO NigeriaSchool Adoption List

EastCommunity High School Akparakwa, Akwa Ibom (2006)Government College Owerri, Imo State (2005)Federal Govt. College Calabar, Cross Rivers State (2005)Stella Maris College, Port Harcourt, Rivers State (2004)

East CentralNotre Dame High School Onitsha, Anambra State (2006)Western Boys High School, Benin, Edo State (2004)

North EastSanni Dingyadi Unity School, Birini-Kebbi Road, Sokoto State (2006)Government Day Secondary School, Zaria, Kaduna State (2005)Government Secondary School, Kano, Kano State (2004)

North CentralGovernment College Markudi, Benue State (2006)Government. Science Secondary School, Lokoja, Kogi State (2006)Government Secondary School, Minna, Niger State (2005)Government College, Jengre, Plateau State (2004)

WestAll saints College Jericho, Ibadan, Oyo State (2006)Federal Government College, Odogbolu, Ogun State (2005)Ogba Junior Grammer School, Ogba, Lagos State (2004)

North WestGovernment College, Yola, Adamawa State (2005)Government College Maiduguri, Borno State (2004)

We are still focusedon our objective toeducate youngminds towardsachieving their everygoal.

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Name of InstitutionName of InstitutionName of InstitutionName of InstitutionName of Institution RRRRResearesearesearesearesearccccch h h h h WWWWWorkorkorkorkork

University of Nigeria Nsukka, Physicochemical sensory qualities and storageEnugu State. stabilities of locally produced yoghurt in

Enugu metropolis.

University of Uyo, Akwa Ibom State. Proximate Composition, anti-nutrient andeffectof storage on local spices and flavorings.

Federal University of Technology, Minna, Investigation into the production of milkNiger state. substitute using tiger nut, sesame and baobab

fruit pulp.

University of Ibadan, Oyo State. Effects of packaging materials on shelf life andquality of soymilk.

University of Maiduguri, Borno State. Effect of "calotropis procera" on cheese fromgoat and cow milk.

Federal University of Technology Yola, Process optimization for the production of furaAdamawa State. from pearl millet and soybean through

extrusion cooking.

Tertiary EndowmentWe are still unwavering in our purpose to support the development of research in TertiaryInstitutions across Nigeria. The departments of Food Science and Technology in the 6selected institutions were given the endowment fund of Two Hundred and Seventy FiveThousand Naira (=N=275, 000.00) each.

Some of the researches embarked upon by the schools for the year are as follows:

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Since its inception, theOlu Akinkugbe ChildNutrition Centre hasrecorded tremendoussuccess and achievementin the area of publicenlightenment byengaging in key activitieslike nutrition educationand advocacy aimed atenhancing the lives ofmothers, children and thegeneral public.

To further confirm hercommitment as the firstclass expertise centre inchild nutrition, the

The Olu Akinkugbe Child NutritionCentre (OACNC) nurtures the beliefthat everyone has got the potentialto excel, that is why steps havebeen taken to further improve thenutritional status of a broad-spectrum of Nigerians with clearemphasis on child nutrition.OACNC is an initiative set up bythe company in November 2005 todisseminate objective andtrustworthy nutrition informationto Nigerians.

Service to humanityOACNC 2008

OACNC’s 6 satellitecentres; within 3 generalhospitals and 3 privatehospitals in Lagos wereestablished in 2006. Thecentres constitute anaverage of 80 mothers,given both theory andpractical nutrition talksdaily.

The centre also continuedto maintain the practicalfood demonstration onweaning foods to mothersthat bring their childrenfor immunisation.


attended by dignitariessuch as the First Lady ofLagos State, MrsAbimbola Fashola and theMinister of Informationand immediate pastDirector General ofNAFDAC, Prof. DoraAkunyili.

It was observed that theNigerian population andparticularly mothers donot have adequateknowledge on theimportance of Vitamin Athe consequences of itsdeficiency, food sourcesand control measures.Another observation wasthe problem of reachingthe rural population(People at the bottom ofthe pyramid) withnutrition interventionprogrammes.

Recognizing the essentialrole of Vitamin A in healthand productivity andfurther reviewing thesuccesses andshortcomings of pastVitamin A interventionprograms in thecommunities in Nigeria,the Olu Akinkugbe ChildNutrition Centre, held its4th annual NutritionSeminar on 31st October2008 with key HealthCare Professionals (HCPs)on the topic: "The Role ofVitamin A in Achieving theMillennium DevelopmentGoals". The seminar laidmuch emphasis on thefact that mild tomoderate deficiencycauses impaired immunefunction, increasedseverity of infection andan increase risk ofmortality from infectiousdiseases. At the nationallevel, 29.5% of children inNigeria under 5 yearssuffer from Vitamin Adeficiency.

Mr. Lucas Dahlhaus, a member of the board ofdirectors, donated the sum of 6.5 million naira insupport of the Vitamin A Advocacy Campaign; a way ofshowing personal comittment to the social needs inour society.

Fortifying families

for the future

The OACNC carried out a successfulVitamin A awareness campaign in 4communities including Ogba and Ikeja inLagos, Esie and Ikereku in Kwara and Oyostates respectively. Activities during theVitamin A campaign include, training of

the Community Health Promoters,nutrition education to the community,especially to mothers, Vitamin Asupplementation in collaboration withthe State Ministry of Health. The kickoff programme at Lagos was well

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notes

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