ProNutri Dairy Foods — Executive Summary

ProNutri Dairy Foods (Pty) Ltd ("ProNutri Dairy" or "the Company") is a proposed integrated dairy processing and manufacturing business to be established in George, Western Cape, South Africa. The Company will process raw milk sourced from contracted dairy farms into a diversified…

ProNutri Dairy Foods (Pty) Ltd Business PlanSection 1 › Executive Summary

Section 1 · Business Plan

Executive Summary

ProNutri Dairy Foods (Pty) Ltd ("ProNutri Dairy" or "the Company") is a proposed integrated dairy processing and manufacturing business to be established in George, Western Cape, South Africa. The Company will process raw milk sourced from contracted dairy farms into a diversified…

Total Capital Required
R180,000,000

To establish a commercial dairy manufacturing business in George, Western Cape, scaling to 300,000 litres/day and targeting R780 million in Year-5 revenue, a 24.8% IRR and a 4.2-year payback.

1.1 Business Overview

ProNutri Dairy Foods (Pty) Ltd (“ProNutri Dairy” or “the Company”) is a proposed integrated dairy processing and manufacturing business to be established in George, Western Cape, South Africa. The Company will process raw milk sourced from contracted dairy farms into a diversified portfolio of value-added dairy products, including pasteurised fresh milk, ultra-high temperature (UHT) long-life milk, drinking yoghurt, flavoured milk, cheddar and mozzarella cheese, butter, cream, and milk powder.

The Western Cape province was selected as the operational base due to its position as South Africa’s largest milk-producing region, accounting for approximately 31% of national production. George offers proximity to established dairy farming clusters, reliable water infrastructure, skilled labour, and excellent logistics connectivity to domestic and export markets via the N2 national route and the ports of Cape Town and Gqeberha (Port Elizabeth).

1.2 Investment Proposition

The Company seeks total funding of R180 million, comprising a combination of equity investment and senior secured debt, to finance the construction and commissioning of a modern dairy processing facility. The capital will be deployed across processing equipment, building and civil works, cold storage infrastructure, packaging lines, and working capital requirements.

Investment Highlights: Initial processing capacity of 120,000 litres/day scaling to 300,000 litres/day by Year 5 | Projected Year 5 revenue of R780 million | Target EBITDA margin of 22.5% at maturity | IRR of 24.8% over a 7-year investment horizon | Payback period of approximately 4.2 years

1.3 Key Financial Highlights

Metric Year 1 Year 2 Year 3 Year 4 Year 5
Revenue (R'm) 210.0 336.0 478.0 612.0 780.0
Gross Profit (R'm) 58.8 109.2 167.3 229.5 304.2
EBITDA (R'm) 25.2 53.8 93.2 128.5 175.5
Net Profit / (Loss) (R'm) (5.3) 25.2 55.0 85.7 124.8
EBITDA Margin (%) 12.0% 16.0% 19.5% 21.0% 22.5%
Net Profit Margin (%) (2.5%) 7.5% 11.5% 14.0% 16.0%
Processing Volume ('000 l/day) 120 180 240 280 300
Capacity Utilisation (%) 65% 72% 78% 84% 90%
Figure
Revenue Projection — visualised from the accompanying data.

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