ZAMBEEF
PRODUCTS PLC
[Incorporated in the Republic of Zambia] Company registration
number: 31824 Share Code: ZAMBEEF
ISIN:
ZM0000000201
In accordance with the Lusaka
Securities Exchange ("LuSE") Listings Requirements, the Board of
Directors of Zambeef Products Plc (the "Company" or the "Group")
hereby advises the shareholders of the Company that the Total Basic
Earnings per Share for the financial year ended 30 September 2024
is expected to be 48.7% higher (in Zambian Kwacha) than that
of the financial year ended 30 September 2023.
During the year ended 30 September
2024, the Group posted profitability growth (in Zambian Kwacha)
despite a challenging economic and operating environment, due to
underlying operational performance.
The Company reiterates the guidance
provided in the Company's previous Trading Update of 22 November
2024, and therefore there is no change to the most recent market
expectations as updated on 22 November 2024.
The macroeconomic conditions leading
up to September 2024 were characterized by difficult operating
circumstances, including, as previously announced, a severe drought
and reduced consumer spending, compounded by the Central Bank's
tightening monetary policy to address inflationary risks and
constrained government spending. These factors significantly
limited kwacha liquidity in the economy, leading to
lower-than-expected demand for our products. The outbreak of
Anthrax restricted cattle movement and negatively impacted public
perception, slowing beef volumes in the first quarter. However, we
saw a recovery in beef volumes, as bans on animal movement were
lifted, from the second to the fourth quarter due to improved
availability.
Furthermore, diminished water levels
impacted Zambia's hydropower generation which accounts for 85% of
the country's electricity. The government initiated an aggressive
countrywide load management program that necessitated the use of
more expensive alternative energy sources.
This, along with the sustained
devaluation of the local currency from K21.02/USD at the beginning
of the financial year to K26.54/USD at the end of the period along
with an average inflation rate rising to 15.6%, contributed
significantly to the high input and overhead costs.
Despite these challenges, the
business remained focused on its primary strategy of revenue
enhancement, cost optimization, and volume growth.
The Group expects its results for
year ended 30 September 2024 to be released in early December 2024.
Shareholders are advised that the information contained in this
Trading Statement has not been reviewed nor
reported on by the Company's external auditors.
For further information, please
visit www.zambeefplc.com
or contact:
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Zambeef Products plc
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Tel: +260
(0) 211 369003
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Faith Mukutu, Chief Executive
Officer
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Patrick Kalifungwa, Chief Financial
Officer
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Cavendish Capital Markets Ltd (Nominated Adviser and
Broker)
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Tel: +44
(0) 20 7220 0500
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Ed Frisby/Abigail Kelly (Corporate
Finance)
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Tim Redfern (ECM)
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Autus Securities Limited (Sponsoring Broker)
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Tel: +260
(0) 761 002 002
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Mataka Nkhoma (Sponsoring
Broker)
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Notes to
Editors
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 250 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 9.4m broilers and 31.2 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 it's 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.