REG - Zambeef Products PLC - Trading Statement

Zambeef ProductsAnnouncement

04/12/2023 08:15

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RNS Number : 5465V  Zambeef Products PLC  04 December 2023

 

ZAMBEEF PRODUCTS PLC

Incorporated in the Republic of Zambia

Company registration number: 31824

Share Code: ZAMBEEF

ISIN: ZM0000000201

 

 TRADING STATEMENT

 

In accordance with the Lusaka Securities Exchange ("LuSE") Listings
Requirements, the Board of Directors of Zambeef Products Plc (the "Company")
hereby advises the shareholders of the Company that the Total Basic Earnings
per Share for the financial year ended 30 September 2023 is expected to be
306% and 272% higher (in Kwacha and US Dollar terms respectively) than that of
the previous financial year ended 30 September 2022.

 

The Company reiterates the guidance provided in the Company's previous Trading
Update of 7 November 2023, which included the following information, and
therefore there is no change to the most recent market expectations as updated
on 7 November 2023.

 

Extract from Trading Update of 7 November 2023:

"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 Company expects its results for the year ended 30 September 2023 to be
released on 6 December 2023. Accordingly, shareholders are advised to exercise
caution when dealing in the Company's Securities until the publication of
results. The shareholders are further advised that the information contained
in this Trading Statement has not been reviewed nor reported on by the
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 Office
 M'boo Mumba, Chief Financial Officer

 Cavendish Capital Markets Limited (Nominated Adviser and Broker)  Tel: +44 (0) 20 7220 0500
 Ed Frisby/Abigail Kelly (Corporate Finance)
 Tim Redfern (ECM)

 Autus Securities Limited (Sponsoring Broker)                      Tel: +260 (0) 761 002 002
 Mataka Nkhoma (Broker)

 By order of the Board

 Mwansa Mutimushi

 Company Secretary

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 269 retail outlets throughout Zambia and West Africa.

 

The Company is one of the largest suppliers of beef in Zambia. Five beef
abattoirs and five 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 25 million-day-old
chicks a year. It is one of the largest pig abattoirs and pork processing
plants in Zambia, with a capacity to slaughter 102,000 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 7,265 hectares of row crops under irrigation, which are
planted twice a year, and a further 7,924 hectares of rainfed/dry-land crops
available for planting each year.

 

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