Zambeef Products PLC Full Year Trading Update (6820S)
November 07 2023 - 9:00AM
UK Regulatory
TIDMZAM
RNS Number : 6820S
Zambeef Products PLC
07 November 2023
07 November 2023 Zambeef Products plc
("Zambeef" or the "Group")
Full-Year Trading Update
Zambeef (AIM: ZAM), the fully integrated cold chain foods and
retail business with operations in Zambia, Nigeria and Ghana, is
pleased to provide the following update on trading.
The Group's forward guidance on financial trading performance
for the year ended 30 September 2023 is expected to be above market
expectations, despite a challenging operating environment with
revenue, gross profit and adjusted EBITDA* (all in USD) expected to
be between 5-15% higher than market expectations.
Reported profit before tax (USD) is estimated to be c.30% higher
than current market expectations. A higher taxation charge is
expected to result in reported profit after tax below current
market expectations but above the previous financial year.
The Group continued to see increasing demand for its products,
supported by a price moderation approach, resulting in volume
growth across most product categories. Lower than expected selling
prices and higher input costs (which couldn't fully be passed on to
the consumer), including fuel and electricity, put pressure on
gross margins which moderated in the second half. During H2, the
Group had strong performance enhanced by better overall cost
control.
The exchange rate depreciated steadily in H1 however, was more
turbulent in H2, beginning the financial year at K15.9/USD and
ending the period at K21.31/USD.
The Group is targeting the release of its financial results for
the year ended 30 September 2023 by the end of November 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.
* Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation, impairments, loss on equity accounted
investments, loss on disposal and net unrealised foreign exchange
losses.
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
Cavendish Capital Markets 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 7,265 hectares of row
crops under irrigation, which is planted twice a year, and a
further 7,924 hectares of rainfed/dry-land crops available for
planting each year.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
-Ends-
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