REG - Zambeef Products PLC - Full Year Trading Update

Zambeef ProductsAnnouncement

07/11/2023 14:00

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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
(http://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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