Zambeef Products PLC Trading Update (8497B)
June 07 2023 - 3:00AM
UK Regulatory
TIDMZAM
RNS Number : 8497B
Zambeef Products PLC
07 June 2023
Zambeef Products plc
("Zambeef" or the "Group")
Half Year Trading Update
Zambeef (AIM: ZAM), the fully integrated cold chain foods and
retail business with operations in Zambia, Nigeria and Ghana
provides the following update on trading.
During the half year period to 31 March 2023, the Group has seen
demand for its products increase, supported by a price moderation
approach, resulting in volume growth across most product
categories. However, lower than expected selling prices and higher
input costs (which couldn't be passed on to the consumer),
including higher genset diesel costs in the first quarter of 2023,
put pressure on gross margins. The cropping division was adversely
impacted by a 71% drop in the price of soya beans, exacerbated by
reduced yields, which was partially offset by the higher maize
price. The higher maize price further exerted pressure on stockfeed
margins. The operating environment was characterised by increased
competition, no real growth in consumer spending and unstable
macroeconomic fundamental effects, largely driven by delayed
finalisation of the country's debt restructuring.
For the year ended 30 September 2023 (all in USD), revenue,
adjusted EBITDA and reported profit before tax are expected to be
inline with market expectations. However, gross profit is expected
to be between 8% - 12% behind market expectations, largely due to
the pressure on margins arising from lower than expected pricing
and higher input costs as described above.
The exchange rate depreciated steadily over the period,
experiencing a sharper depreciation towards the end of March 2023,
beginning the financial year at K15.9/USD and ending the period at
K21.6/USD.
The Group expects its results for the half year period ended 31
March 2023 to be released by the end of June 2023 . Shareholders
are advised that the information contained in this Trading Update
has not been reviewed nor reported on by the Company's external
auditors.
For further information, please visit www.zambeefplc.com or
contact:
Zambeef Products plc Tel: +260 (0) 211 369003
Faith Mukutu , Chief Executive Officer
Mboo Mumba, Chief Financial Officer
finnCap Ltd (Nominated Adviser and Broker) Tel: +44 (0) 20 7220 0500
Ed Frisby/Abigail Kelly (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Autus Securities Limited Tel: +260 (0) 761 002 002
Mataka Nkhoma
About Zambeef Products plc
Zambeef Products plc is the largest integrated cold chain food
products and agribusiness company in Zambia and one of the largest
in the region, involved in the primary production, processing,
distribution and retailing of beef, chicken, pork, milk, dairy
products, fish, flour and stockfeed, throughout Zambia and the
surrounding region, as well as Nigeria and Ghana.
It has 236 retail outlets throughout Zambia and West Africa.
The Company is one of the largest suppliers of beef in Zambia.
Five beef abattoirs and three feedlots are located throughout
Zambia, with a capacity to slaughter 230,000 cattle a year. It is
also one of the largest chicken producers in Zambia, with a
capacity of 8.8m broilers and 22.4 million day-old chicks a year.
It is one of the largest piggeries, pig abattoirs and pork
processing plants in Zambia, with a capacity to slaughter 75,000
pigs a year, while its dairy has a capacity of 120,000 litres per
day.
The Group is also one of the largest cereal row cropping
operations in Zambia, with approximately 7,787 hectares of row
crops under irrigation, which are planted twice a year, and a
further 8,694 hectares of rainfed/dry-land crops available for
planting each year.
-Ends-
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