REG - Zambeef Products PLC - Full Year Results
30/11/2021 09:00
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RNS Number : 0202U Zambeef Products PLC 30 November 2021
Zambeef Products plc
("Zambeef" or the "Group")
Full-year results for the year ended 30 September 2021
Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business
with operations in Zambia, Nigeria and Ghana, today announces its audited
results for the year ended 30 September 2021.
Financial Highlights
Figures in 000's 2021 2020 % 2021 2020 %
ZMW ZMW USD USD
Revenue 4,974,351 3,875,104 28% 235,528 239,648 -2%
Cost of sales (3,503,635) (2,659,482) 32% (165,892) (164,470) 1%
Gross profit 1,470,716 1,215,622 21% 69,636 75,178 -7%
Administrative expenses (1,150,658) (945,198) 22% (54,482) (58,454) -7%
Distribution costs (66,848) (66,770) 0% (3,165) (4,129) -23%
Other income 14,120 6,877 105% 669 425 57%
Operating profit 267,330 210,531 27% 12,658 13,020 -3%
Finance costs (115,282) (92,322) 25% (5,458) (5,709) -4%
Exchange gains/(losses) 23,332 (137,705) 117% 1,105 (8,516) -113%
Share of loss equity accounted investment (3,358) (3,177) 6% (159) (197) -19%
Profit from assets held for sale 31,949 - 100% 1,513 - 100%
Profit/(loss) before taxation 203,971 (22,673) 1,000% 9,658 (1,402) 789%
Taxation charge (35,148) (112,957) 69% (1,664) (6,986) 76%
Group income for the year from continuing operations 168,823 (135,630) 224% 7,995 (8,388) 195%
Profit from discontinued operations - 33,435 -100% - 2,068 -100%
Group income/(loss) for the year 168,823 (102,195) 265% 7,995 (6,320) 226%
EBITDA* 456,771 415,405 10% 21,627 25,689 -16%
Gross Profit Margin 29.57% 31.37% 29.57% 31.37%
EBITDA* Margin 9.18% 10.72% 8.75% 9.08%
Debt/Equity (Gearing) 18.59% 21.14% 18.59% 21.14%
Debt-To-EBITDA* 1.56 1.92 -19% 1.97 1.54 28%
*EBITDA is defined as Earnings before interest, tax, depreciation,
amortisation, fair value adjustments, loss from equity accounted investments,
loss on disposal and net unrealised foreign exchange losses.
PERFORMANCE OVERVIEW
Despite the rising input costs and global food prices, the difficult operating
environment as a result of the 2020 economic and Covid-19 related
uncertainties, the sustained consumer demand for the Groups products has
driven positive full year performance. The macroeconomic fundamentals remained
relatively stable during the financial year in the context of the previous
comparative year. The local currency depreciated at a much slower rate in the
first half and experienced steep appreciation in the second half. Increased
consumer spending stemming from the Covid-19 economic stimulus package
resulted in increased demand for our products. The good rainfall season
experienced during the summer increased the supply of hydroelectric power to
the nation, which helped alleviate the load shedding situation, thus
positively impacting on the financial performance. The strength, resilience
and agility of our business can be seen through the strong financial
performance.
The Group generated an operating profit, including profit from asset held for
sale, of ZMW299.3 million (USD14.1 million) compared to ZMW212.1 million
(USD13.1million) in the prior financial year. The operating profit excluding
profit from asset held for sale was ZMW267.3million (USD12.7 million) compared
to ZMW210.5 million (USD13.0 million) achieved in the previous financial year.
Profit before tax was ZMW203.9 million (USD9.7 million) compared to a loss
before tax of ZMW22.7 million (USD1.4 million) achieved in the prior financial
year. The Group's performance in the face of headwinds illustrates the
strengths of its vertically integrated business model, the strength of its
brands and management team.
KEY FINANCIAL HIGHLIGHTS
Revenue and gross profit increased by 28% and 21% respectively in Kwacha terms
for the Group due to the focus on revenue optimisation across most product
lines. However due to the depreciation of the Zambian kwacha, the metrics in
USD reduced by 2% and 7% respectively in comparison to 2020.
Despite an inflationary environment, management's continued focus on cost
control measures ensured administration and distribution expenses were
contained within inflationary levels and only increased by 20% (Inflation
averaged 21.7% for the period) from ZMW1 billion in the previous corresponding
period to ZMW1.2 billion in the period under review.
Finance costs reduced by 4.4% in USD following repayments of principal amounts
on long term loans. During the period under review, management took steps to
restructure the Company's debt profile by replacing USD debt with Kwacha debt
to match the debt profile to the revenue profile and thus reduce foreign
exchange risk, which should help provide predictability to the bottom line
going forward. The USD to ZMW debt mix now stands at 15%:85% compared to
80%:20% at the end of the previous financial year. The Group benefited from
the Central Bank's Covid-19 relief fund with favourable interest rates.
The operating profit performance and the recorded exchange gains during the
financial year resulted in a profit after tax of ZMW169 million (USD 8.0
million) for 2021 compared to a loss after tax of ZMW102 million (USD6.3
million) in the previous period.
Zambeef's management remains committed to implementing the five year business
strategy which is underpinned by the following pillars:
§ Focus on and strengthen our core business by investing in capacity and grow
market share
§ Divestiture of non-core assets to free up resources
§ Develop a human capital strategy that aligns with business objectives
§ Strengthen our strategic partnerships.
Zambeef's management will continue to focus resources on the Group's
profitable business divisions, while improving those divisions that need
additional attention to ensure that all areas of the business contribute fully
to Group profitability. Management will remain focused on cost control and
productivity improvements to enhance margins.
Commenting on these results, Chairman Mr. Mulenga Mundashi said:
"The unprecedented effects of the global pandemic disrupted all aspects of
life around the world and our business has not been exempted. This invariably
meant difficult trading conditions. Balancing between safeguarding the welfare
of our people and customers and ensuring the business continuing to run
efficiently and effectively whilst feeding the nation. The 2021 financial year
was characterised by supply challenges and rising input costs underpinned by a
tough macro environment. In comparison to the previous period, the
macroeconomic fundamentals remained relatively stable during the financial
year in the context of events in the second half of 2020. The local currency
depreciated at a much slower rate in the first half and experienced a steep
appreciation in the second half of the financial year. Increased consumer
spending, stemming from the Central Bank's Covid-19 economic stimulus package
resulted in increased demand for our products."
"The good rainfall season experienced during the summer increased the supply
of hydroelectric power to the nation, which helped alleviate the load shedding
situation, thus positively impacting on the financial performance. The
strength, resilience and agility of our business can be seen through the
strong financial performance, having posted record profits."
"The Board believes the key to sustainable growth, while mitigating the
effects of dynamic economic and climate cycles, lies in remaining committed to
its strategic priorities. As such, the focus remains on the core businesses
that generate sustainable and strong cashflows, while reducing our debt to
release cash for reinvestment in higher returning projects."
"We anticipate macro-economic stability to continue over the medium term
supported by improved investor sentiment, high copper prices and improved
electricity supply. The Kwacha is expected to maintain relative stability with
minor volatility towards the end of the calendar year. The copper price, which
is a major foreign exchange earner for the country, is expected to continue
holding as the global economy continues to recover from the Covid-19 related
shocks. The inflation rate is expected to reduce following an expected summer
crop bumper harvest from a forecasted La Niña weather pattern, the
appreciation of the Kwacha and restoration of global supply stability. The
Covid-19 pandemic remains a threat to the country as its vaccination program
continues to move at a slow pace."
"The Group remains committed to delivering value to shareholders and is well
positioned to navigate the turmoil while capitalising on opportunities."
Copies of Zambeef's Annual Report and Accounts for the year ended 30 September
2021 and Notice of AGM will shortly today be available on the Group's website.
For further information, please visit www.zambeefplc.com or contact:
Zambeef Products plc Tel: +26 (0) 211 369003
Walter Roodt, Chief Executive Officer
Faith Mukutu, Chief Financial Officer
finnCap (Nominated Adviser and Broker) Tel: +44 (0) 20 7220 0500
Ed Frisby/Kate Bannatyne/Tim Harper (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Autus Securities Limited Tel: +26 (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, eggs, dairy products, fish, flour and stockfeed,
throughout Zambia and the surrounding region, as well as Nigeria and Ghana.
It has 238 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 and egg
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.
CHAIRMAN'S REVIEW
Dear Shareholder,
It is my great pleasure to present to you the Chairman's Report with respect
to the financial year ended 30 September 2021.
The unprecedented effects of the global pandemic disrupted all aspects of life
around the world and our business has not been exempted. This invariably meant
difficult trading conditions. Balancing between safeguarding the welfare of
our people and customers and ensuring the business continuing to run
efficiently and effectively whilst feeding the nation. The 2021 financial year
was characterised by supply challenges and rising input costs underpinned by a
tough macro environment. In comparison to the previous period, the
macroeconomic fundamentals remained relatively stable during the financial
year in the context of events in the second half of 2020. The local currency
depreciated at a much slower rate in the first half and experienced a steep
appreciation in the second half of the financial year. Increased consumer
spending, stemming from government dismantling of domestic debt and the
Central Bank's Covid-19 economic stimulus package resulted in increased demand
for our products.
The good rainfall season experienced during the summer increased the supply of
hydroelectric power to the nation, which helped alleviate the load shedding
situation, thus positively impacting on the financial performance. The
strength, resilience and agility of our business can be seen through the
strong financial performance, having posted record profits.
The Group generated an operating profit, including profit from asset held for
sale, of ZMW299.3 million (USD14.1 million) compared to ZMW212.1 million
(USD13.1 million) in the prior financial year. The operating profit excluding
profit from asset held for sale operations was ZMW267.3million (USD12.7
million) compared to ZMW210.5 million (USD13.0 million) achieved in the
previous financial year. Profit before tax was ZMW203.9 million (USD9.7
million) compared to a loss before tax of ZMW22.7 million (USD1.4 million)
achieved in the prior financial year. The Group's performance in the face of
headwinds illustrates the strengths of our vertically integrated business
model, the strength of our brands and a strong management team.
The Board believes the key to sustainable growth, while mitigating the effects
of dynamic economic and climate cycles, lies in remaining committed to its
strategic priorities. As such, the focus remains on the core businesses that
generate sustainable and strong cashflows, while reducing our debt to release
cash for reinvestment in higher returning projects.
The Economic Environment
The Zambian economy came under significant pressure in the first half of the
financial year, stemming from the national debt burden, which was exacerbated
by the impact of the coronavirus pandemic while the second half saw the
country hold successful general elections which resulted in positive market
sentiments and a positive economic outlook. The Zambian Kwacha appreciated
steeply in the last quarter, supported by foreign participation in the bond
market and a higher copper price on the international commodity markets.
Despite recovery in the global economy, the Zambian economic recovery shall
remain gradual, given the high debt burden, high inflation and a volatile
currency.
Inflationary pressures, particularly food inflation, had resulted in a
significant drop in our customers' disposable income and has continued to put
pressure on the consumers' share of wallet going towards food spend. Inflation
for the financial year under review closed at 22.1% compared to 15.7% for the
previous financial year.
Divisional Performance review
Retail and Cold Chain Food Products
The Group continued to focus on revenue optimisation, asset utilisation and
cost control as pillars to drive profitability in the combined retail and cold
chain food products divisions. Revenue grew by 30% with an operating profit of
ZMW 216.4 million.
Supply challenges experienced by the division and rising global food prices
precipitated rising input costs. As a result, the division saw volumes decline
across most protein categories.
The Poultry business remained a major source of profitable growth for the
Group. Management implemented measures to improve production efficiencies,
which contributed to improved gross profit margins. Increased demand for eggs,
broilers and therefore day-old chicks allowed for revenue growth and improved
profitability.
Stockfeed
Volumes were flat compared to prior year during the period owing to slow
growth and declines on major product lines. The shortage of day-old chicks on
the market limited customers buying of broiler feed while an export ban
imposed by government reduced export sales. The increase in the world prices
of GMO-free soya beans and imported materials negatively impacted cost of
sales and, therefore, profitability.
Cropping
Zambia had a good summer rainfall season, and as a result, yields for the
summer crop were in line with expectations, with winter crop yields exceeding
expectations supported by better farming practices and reduced load-shedding.
The country delivered a bumper maize harvest, which helped to stabilise maize
prices.
Outlook
We anticipate macro-economic stability to continue over the medium term
supported by improved investor sentiment, high copper prices and improved
electricity supply. The Kwacha is expected to maintain relative stability with
minor volatility towards the end of the calendar year. The copper price, which
is a major foreign exchange earner for the country, is expected to continue
holding as the global economy continues to recover from the Covid-19 related
shocks. The inflation rate is expected to reduce following an expected summer
crop bumper harvest from a forecasted La Niña weather pattern, the
appreciation of the Kwacha and restoration of global supply stability. The
Covid-19 pandemic remains a threat to the country as the country's vaccination
program continues to move at a slow pace.
The Group remains committed to delivering value to shareholders and is well
positioned to navigate the turmoil while capitalising on opportunities.
Strategy
During the year, the board embarked on a five-year strategy refresh process
for the Group. Although it is difficult to look ahead with any certainty, I am
happy to report that we now have a strategy in place that positions the Group
to tackle the challenges ahead while capitalising on the opportunities
presented and therefore maximise shareholder value. The strategy provides
clarity in terms of where we want to go and what we want to do, having set
realistic targets and mapped out a journey. The "five-year" strategy will be
underpinned by the following pillars:
§ Focus on and strengthen our core business by investing in capacity and grow
market share
§ Divestiture of non-core assets to free up resources
§ Develop a human capital strategy that aligns with business objectives
§ Strengthen our strategic partnerships
Acknowledgement
On behalf of the Company and the board of directors, I would like to express
my sincere gratitude to Dr Lawrence Sikutwa, Margaret Mudenda, John Rabb,
David Osborne and Professor Enala Mwase who resigned from the board in
February and March 2021. Their dedication and contributions to the success of
the business over the years will be greatly missed.
During the year, we welcomed Monica Musonda, Pearson Gowero and Roman Frenkel
to our board of directors. Their industry experience and rich diverse
backgrounds will be key in driving the business into the next phase of the
Groups evolution as a regional food provider.
At senior management level, we said farewell to Danny Museteka who had been
with the company for 22 years, his last role being company secretary. Danny
played a vital role in helping to transform the company over the years, and I
would like to thank him for his outstanding contribution. We welcomed Mwansa
Mutimushi who joined as Group head of legal & company secretary and Nyangu
Kayamba who also joined as human resources executive. I believe it is a good
addition to the dedicated team and that we have a good balance of skills and
professionalism.
I also thank my fellow board members for steering the Group through this
challenging period. To our management and staff, I express my gratitude to
them for another solid performance, dedicated efforts and resilience in the
face of challenges. I am proud of our achievements to date, and I am excited
by the potential opportunities upon which we will build our future progress.
Michael Mundashi SC
Chairman
CHIEF EXECUTIVE OFFICER'S REVIEW
Overview
Despite the rising input costs and rising global food prices, and a difficult
operating environment resulting from the 2020 economic and Covid-19 pandemic
related uncertainties, the positive full year performance has been driven by
sustained consumer demand for our products and cost reductions and efficiency
improvements especially in the poultry business. The macroeconomic
fundamentals remained relatively stable during the financial year in the
context of the previous comparative year. The local currency depreciated at a
much slower rate in the first half and experienced a steep appreciation in the
second half of the financial year. Increased consumer spending stemming from
the Covid-19 economic stimulus package resulted in increased demand for our
products. The good rainfall season helped alleviate load shedding and
therefore positively impacted on the financial performance. The increase in
raw material input costs, such as Soya and imported products, impacted on
production costs. The resultant increase in food prices to our customers saw
increased demand for more affordable offerings of our products as customers
traded down.
The load shedding situation improved towards the end of the calendar year 2020
following good regional rains because of the La Niña weather pattern,
resulting in reduced generator fuel expenditure and improved production
efficiencies.
The Group delivered operating profit, including profit from asset held for
sale, of ZMW299.3 million (USD14.1 million), equating to a growth of 42% in
Kwacha terms and 8% growth in US Dollar terms, compared with ZMW212.1 million
(USD13.1 million) in 2020. The operating profit excluding profit from asset
held for sale was ZMW267.3million (USD12.7 million) compared to ZMW210.5
million (USD13.1 million) achieved in the previous financial year.
Our revenue, including from asset held for sale, was ZMW5.2 billion (USD244.1
million) and we achieved a gross profit of ZMW1.54 billion (USD73.1 million),
respectively 30.8% and 22.8% above the prior year in Kwacha terms, and 0.5%
and 0.1% growth in US Dollar terms, respectively.
The Group's strong performance was driven by growth in the poultry and retail
divisions. Management continued optimising top line growth through revenue
management initiatives while the continued cost control measures helped
deliver strong operating profit performance.
The Group recorded exchange gains owing to the appreciation of the local
currency. Financing costs reduced following a reduction in debt and the
appreciation of the local currency. Management took steps to restructure the
company's debt profile by replacing USD debt with Kwacha debt to match the
debt profile to the revenue profile and thus reduce foreign exchange risk,
which should help provide predictability to the bottom line going forward. The
USD to ZMW debt mix now stands at 15%:85% compared to 80%:20% at the end of
the previous financial year. The Group derived a significant benefit from the
central bank's Covid-19 relief fund with favourable interest rates.
Our diversified and vertically integrated business with strong brands,
supportive partners and an experienced management team helped deliver
encouraging results during a challenging year.
Strategic focus
Our strategic focus remains to optimise our asset utilisation and maximise
returns. We remain committed to our strategy of focussing on our core
businesses, in which we strive to be the best in class. The continued
deleveraging and divestiture of non-core assets will enable us to free up cash
to invest into our core businesses and therefore maximise shareholder value.
Retail and Cold Chain Food Products (CCFP)
The year saw traditionally high-volume sales lines come under pressure amidst
a high inflationary environment and reduced customer spending. Despite high
demand in our key product lines, supply constraints negatively impacted volume
growth. Revenue growth was mainly driven by pricing on traditional product
categories and aided by sales volume growth of traded goods and affordable
alternative food categories. Shoprite in-store butcheries were a source of
revenue growth as they proved relatively more resilient to inflationary
pressures.
Sales volumes came under pressure on the back of supply constraints due to
constrained livestock producer profitability levels. Significant producer
price increases were necessary during the period for livestock producers to
increase output. The price increases that were necessary to stimulate supply
resulted in customers moving towards more affordable protein offerings. The
poultry division was a major contributor to revenue growth due to improved
efficiencies and high demand for it as a relatively affordable protein source,
in the form of chicken and eggs.
Despite the challenges, the Retail and Cold Chain Food Products business
registered a healthy revenue growth of 30% above the prior year. Management
employed a revenue optimisation strategy, responding quickly to the evolving
volatile operating environment.
Retail and Cold Chain Food Products delivered an operating profit of ZMW
216.4 million in Kwacha terms. Operational efficiency improvements and
overhead spend discipline ensured translation of the top line growth to the
bottom-line. Reduced load shedding helped reduce fuel costs of our electricity
generators, which further contributed to the increased profitability,
particularly in the second quarter.
Stockfeed
Revenue for the division was 31% above prior year mainly due to price, as
volumes remained flat on prior year. The demand for poultry feed reduced
following a day-old chick supply shortage across the market. An export ban on
animal feed from Zambia resulted in a further slowdown of production volumes.
However, fish feed continues to register exponential growth following the
sector specific lifting of the fish feed export ban and government's efforts
to make Zambia a regional player in the aquaculture sector. The depreciation
of the Kwacha to the USD and ZAR negatively impacted foreign currency
denominated costs. The high soya bean prices also negatively impacted on the
cost of sales.
Cropping
Revenue in USD terms increased by 10% due to favourable winter crop price and
sale of the soya summer crop. However, operating profit decreased in USD terms
due to price increases in input costs. Zambia experienced a good rainfall
season and the yield of the summer crop was in line with expectations with the
yield of the winter crop exceeding expectations.
Outlook
The macroeconomic environment is expected to remain stable with indicators
expected to adjust to a more favourable position. The successful holding of
general elections on 12 August 2021 and the resultant change in government and
peaceful transition has brought investor confidence and optimism. This
triggered a sharp appreciation of the kwacha as foreign interest in government
securities intensified and foreign direct investment prospects improve. This
coupled with high copper prices, a potential IMF deal and continued low load
shedding levels due to another La Niña weather pattern this summer, has
improved the country's economic outlook. We expect this to translate into a
slowdown in inflation, reduced interest rates and thus increased economic
activity and a restoration of macroeconomic stability.
Despite the macro-economic headwinds and uncertainty caused by the Covid-19
pandemic, Zambeef's underlying performance has been and is expected to remain
resilient, improving as the economic situation improves. Our strong brands
help us maintain customer loyalty while the vertically integrated business
model helps to secure both supply and a market for our products. The future
recovery in the economy and strong management have positioned us well for an
improved profitability in the coming years.
Our deleveraging strategy and debt profile reorganisation will help relieve
exchange losses and financing cost pressures to the bottom line, which will
increase free cash flow to enable us to invest in the future.
We remain committed to implementing and enforcing Covid-19 protocols in our
outlets while driving the vaccination of all our employees. We believe that a
healthy, sustainable and profitable growth trend can only be achieved when we
work together with our partners, communities and customers to curb infections
through the observation and implementation of safety protocols.
Key Market Indicators
Reporting Period Monthly Averaged Comparatives 2021 2020 Change
Economy
ROE ZMW/USD ZMW 21.1 16.2 30%
Annual Inflation rate % 22.1 15.7 41%
Copper $/Ton 9,041 6,610 37%
Commodities
Maize $/ton 150 252 -40%
Soya Beans $/ton 400 382 5%
SE Cake $/ton 416 403 3%
Wheat $/Ton 440 415 6%
Input Prices
Maize Bran K/Ton 1,690 1,190 42%
Broiler Grower K/50kg 367 310 18%
Pig Grower K/50Kg 317 251 26%
Layer feed K/50kg 273 231 18%
Day-old chick K/DOC 11.1 6.8 63%
Selling Prices
Beef Mixed cut K/Kg 44.4 37.7 18%
Chicken Frozen K/Kg 34.6 28.2 23%
Chicken Live Market K/Chicken 80 52 54%
Egg Tray K/tray of 30 Eggs 48.8 35.6 37%
DIVISIONAL PERFORMANCE
Table 1 (ZMW) and Table 2 (USD) below provide a summary of the consolidated
performance of the key business divisions reported at an operating profit
level.
Table 1: Divisional financial summary in ZMW'000
ZMW Revenue Gross Profit Overheads Operating Profit
Division 2021 2020 2021 2020 2021 2020 2021 2020
ZMW'000
ZMW'000
ZMW'000
ZMW'000
ZMW'000
ZMW'000
ZMW'000
ZMW'000
Total
Retailing 2,906,466 2,396,313 271,261 243,377 (338,901) (322,041) (67,640) (78,664)
CCFP 2,054,232 1,516,371 556,186 401,276 (272,126) (213,054) 284,060 188,222
Less Interco (1,705,769) (1,399,926)
Combined
Retail & 3,254,929 2,512,758 827,447 644,653 (611,027) (535,095) 216,420 109,558
CCFP
Stock Feed 1,747,742 1,331,965 300,436 255,888 (153,716) (129,539) 146,720 126,349
Cropping 754,385 651,560 272,254 266,405 (192,845) (160,618) 79,409 105,787
Others 343,391 203,609 70,579 48,676 (31,985) (23,450) 38,594 25,226
Total 6,100,447 4,699,892 1,470,716 1,215,622 (989,573) (848,702) 481,143 366,920
Less: Intra/
Inter Group (1,126,096) (824,788)
Sales
Central
Overhead (213,813) (156,389) (213,813) (156,389)
Group Total 4,974,351 3,875,104 1,470,716 1,215,622 (1,203,386) (1,005,091) 267,330 210,531
DIVISIONAL PERFORMANCE
Table 2: Divisional financial summary in USD'000
USD Revenue Gross Profit Overheads Operating Profit
Division 2021 2020 2021 2020 2021 2020 2021 2020
USD'000
USD'000
USD'000
USD'000
USD'000
USD'000
USD'000
USD'000
Total
Retailing 137,617 148,195 12,844 15,051 (16,046) (19,916) (3,203) (4,865)
CCFP 97,265 93,777 26,335 24,816 (12,885) (13,176) 13,450 11,640
Less Interco (80,766) (86,576) - - - - -
Combined
Retail & 154,116 155,396 39,178 39,867 (28,931) (33,092) 10,247 6,775
CCFP
Stock Feed 82,753 82,373 14,225 15,825 (7,278) (8,011) 6,947 7,814
Cropping 35,719 40,294 12,891 16,475 (9,131) (9,933) 3,760 6,542
Others 16,259 12,592 3,342 3,010 (1,514) (1,450) 1,827 1,560
Total 288,847 290,655 69,636 75,178 (46,855) (52,486) 22,781 22,691
Less: Intra/
Inter Group (53,319) (51,007)
Sales
Central
Overhead (10,124) (9,672) (10,124) (9,672)
Group Total 235,528 239,648 69,636 75,178 (56,979) (62,158) 12,658 13,020
Taking the performance of each of our key business areas in turn:
Retail and Cold Chain Food Products
The combined Retail and Cold Chain Food Products divisions generated an EBIT
margin of 6.7% which increased by 229 basis points from the previous financial
year to ZMW 216.4 million (2020: ZMW 109.6 million) in Kwacha terms and grew
impressively by 51.2% to USD 10.3 million (2020: USD 6.7 million) in Dollar
terms.
The strong performance was underpinned by revenue optimisation and cost
control in Poultry products supported by increased demand given the relative
affordability of Chicken and Egg as a source of protein. Cost pressure arising
from supply constraints negatively impacted on the profitability in Pork, Beef
and Milk.
West Africa Retail
Our Nigerian business was impacted by the sporadic protests related to the
Shoprite announcement of the intention to pull out of the Nigeria market and
the End SARS protests. In addition, the business experienced supply challenges
across its major product lines. Despite all these challenges, revenue
increased by 14% to USD 15.4 million (2020: USD 13.5 million) mainly due to
pricing and exchange translational effects with dollar revenue increasing by
14%. However, operating profit declined by 52% in dollar terms due to rising
costs of inputs.
Stockfeed
Sales volumes were flat on prior year mainly due to declines on key volume
categories. Shortage of day-old chicks slowed the growth of broiler feed while
an export ban impacted export sales.
Revenue grew by 31% in Kwacha terms and 0.5% in USD terms, while the operating
profit grew by 16% to ZMW 146.7 million (2020: ZMW 126 million) or declined
by 11% to USD 6.9 million (2020: USD 7.8 million) in Dollar terms.
Production costs was impacted by rising costs of inputs, particularly the Soya
and imported raw materials.
Cropping
The Cropping business is key to Zambeef, providing raw material inputs for
value added processing within the Group and serving as a currency hedge by
being able to generate USD cash flow.
Revenue including revenue from assets heald for sale increased by 10% in USD
terms to USD 44.3 million (2020: USD 40.3 million) which translated to a 43.4%
growth in revenue to ZMW 935.9 million (2020: ZMW 651.5 million) when analysed
in kwacha terms. Gross profit increased by 30% to ZMW 345 million compared to
the previous corresponding period (2020: ZMW 266 million) in Kwacha terms
despite a 1% reduction in USD terms to USD 16.3 million (2020: USD 16.5
million). The division observed an increase in overheads of 47% in Kwacha
terms and 12.7% in USD as a result of increments in repair and maintenance
costs during the period under review.
Zambia experienced a good rainfall season and the summer harvest is expected
to be in line with expectations. However, the price of maize is expected to be
lower than the prior year following the expected bumper harvest predicted for
Zambia.
Other businesses
Total revenue from the Group's other business units increased by 68.7%% to
ZMW 343 million (2020: ZMW 203.6 million) mainly due to growth in both the
milling and leather to shoe businesses. This translated to gross profit growth
of 45% in Kwacha terms due to cost pressures in Milling arising from the
increase in price of wheat in kwacha terms following the depreciation of the
currency.
The leather to shoe business turnaround strategy paid off as the division saw
an increase in demand for its products, particularly school shoes, following
the opening of schools after Covid-19 related closures. Management focus has
been to optimise production efficiencies, control overhead costs, innovation
and look for new market opportunities for its products.
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Group 2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
Revenue 4,974,351 235,528 3,875,104 239,648
Net (loss)/gain arising from price changes in fair value of biological assets 6,651 315 (14,381) (889)
Cost of sales (3,510,286) (166,207) (2,645,101) (163,581)
Gross profit 1,470,716 69,636 1,215,622 75,178
Administrative expenses (1,150,658) (54,482) (945,198) (58,454)
Distribution costs (66,848) (3,165) (66,770) (4,129)
Other income 14,120 669 6,877 425
Operating profit 267,330 12,658 210,531 13,020
Share of loss from equity accounted investment (3,358) (159) (3,177) (197)
Profit from asset held for sale 31,949 1,513 - -
Exchange losses on translating foreign currency transactions and balances 23,332 1,105 (137,705) (8,516)
Finance costs (115,282) (5,458) (92,322) (5,709)
Profit/(loss) before taxation 203,971 9,658 (22,673) (1,402)
Taxation charge (35,148) (1,664) (112,957) (6,986)
Group income/(loss) for the year from continuing operations 168,823 7,995 (135,630) (8,388)
Profit from discontinued operations - - 33,435 2,068
Group income/(loss) for the year 168,823 7,995 (102,195) (6,320)
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2021 2021 2020 2020
ZMW'000s USD'000s ZMW'000s USD'000s
Group (loss)/income attributable to:
Equity holders of the parent 167,980 7,955 (103,419) (6,396)
Non-controlling interest 843 40 1,224 76
168,823 7,995 (102,195) (6,320)
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
Exchange gains/(losses) on translating presentational currency (286,645) 25,338 625,042 (52,402)
Items that will not be reclassified
subsequently to profit or loss
Remeasurement of net defined benefit liability (2,813) (133) 6,229 385
Remeasurement of leases - - 315 20
Revaluation of assets 192,403 9,110 - -
Total other comprehensive income/(loss) (97,055) 34,315 631,586 (51,997)
Total comprehensive income/(loss) for the year 71,768 42,310 529,391 (58,317)
Total comprehensive income/(loss) for the year attributable to:
Equity holders of the parent 73,867 42,440 525,030 (58,661)
Non-controlling interest (2,099) (130) 4,361 344
71,768 42,310 529,391 (58,317)
Ngwee Cents Ngwee Cents
Earnings per share
Basic earnings per share - continued operations 55.89 2.65 (45.12) (2.79)
Basic earnings per share - discontinued operations - - 11.12 0.69
Total Basic earnings per share 55.89 2.65 (34.00) (2.10)
Diluted earnings per share
Diluted earnings per share - continued operations 41.92 1.99 (45.12) (2.79)
Diluted earnings per share - discontinued operations - - 11.12 0.69
Total Diluted earnings per share 41.92 1.99 (34.00) (2.10)
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
(i) In Zambian Kwacha Total attributable to owners of the parent ZMW'000s
Foreign exchange reserve Non- controlling interest
Issued share capital Share premium Preference share capital ZMW'000s Revaluation reserve Retained earnings ZMW'000s
ZMW'000s ZMW'000s ZMW'000s ZMW'000s ZMW'000s Total equity
ZMW'000s
As at 30 September 2019 3,006 1,125,012 1,000 381,929 1,199,058 535,704 3,245,709 (4,881) 3,240,828
Adjustment on transition to IFRS16 - - - - - 315 315 - 315
At 1 October 2019 3,006 1,125,012 1,000 381,929 1,199,058 536,019 3,246,024 (4,881) 3,241,143
Loss for the year - - - - - (103,419) (103,419) 1,224 (102,195)
Transfer of surplus depreciation (31,345) 31,345 - -
- - - - -
Other comprehensive income:
Exchange gain/(loss) on translating presentational currency 621,905 621,905 3,137 625,042
- - - - -
Remeasurement of net defined benefit liability - 6,229 - 6,229
- - - - 6,229
Total comprehensive income 621,905 (31,345) (65,845) 524,715 4,361 529,076
- - -
At 30 September 2020 3,006 1,125,012 1,000 1,003,834 1,167,713 470,174 3,770,739 (520) 3,770,219
Profit for the year - - - - - 167,980 167,980 843 168,823
Transfer of surplus depreciation (44,377) 44,377
- - - - - - -
Other comprehensive income:
Revaluation - - - - 192,403 - 192,403 - 192,403
Exchange gain/ (loss) on translating presentational currency (283,703) (283,703) (2,942) (286,645)
- - - - -
Remeasurement of net defined benefit liability - - (2,813) - (2,813)
- - - (2,813)
Total comprehensive income (283,703) 148,026 209,544 73,867 (2,099) 71,768
- -
At 30 September 2021 3,006 1,125,012 1,000 720,131 1,315,739 679,718 3,844,606 (2,619) 3,841,987
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
(ii) In US Dollar Total attributable to owners of the parent USD'000s
Foreign exchange reserve Non- controlling interest
Issued share capital Share premium Preference share capital USD'000s Revaluation reserve Retained earnings USD'000s
USD'000s USD'000s USD'000s USD'000s USD'000s Total equity
USD'000s
At 1 October 2019 449 185,095 100 (197,748) 173,209 84,782 245,887 (370) 245,517
Adjustment on transition to IFRS 16 - - - - - 20 20 - 20
As at 1 October 2019 449 185,095 100 (197,748) 173,209 84,802 245,907 (370) 245,537
Loss for the year - - - - - (6,396) (6,396) 76 (6,320)
Transfer of surplus depreciation - - - - (1,938) 1,938 - - -
Other comprehensive income:
Exchange gains on translating presentational currency - - - (52,670) - - (52,670) 268 (52,402)
Remeasurement of net defined benefit liability - - - - - 385 385 - 385
Total comprehensive income (52,670) (1,938) (4,073) (58,681) 344 (58,337)
- - -
At 30 September 2020 449 185,095 100 (250,418) 171,271 80,729 187,226 (26) 187,200
Profit for the year - - - - - 7,955 7,955 40 7,995
Transfer of surplus depreciation - - - - (2,101) 2,101 - - -
Other comprehensive income:
Revaluation - - - - 9,110 - 9,110 - 9,110
Exchange gains on translating presentational currency - - - 25,508 - - 25,508 (170) 25,338
Remeasurement of net defined benefit liability - - - - - (133) (133) - (133)
Total comprehensive income 25,508 7,009 9,994 42,440 (130) 42,310
- - -
At 30 September 2021 449 185,095 100 (224,910) 178,280 90,652 229,666 (156) 229,510
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
(i) In Zambian Kwacha Issued share capital ZMW'000s Preference share capital ZMW'000s Share premium ZMW'000s Revaluation reserve ZMW'000s Foreign exchange reserve Retained earnings ZMW'000s Total equity
ZMW'000s ZMW'000s
At 1 October 2019 3,006 1,000 1,125,012 862,152 360,506 535,236 2,886,912
Profit for the year - - - - - 26,838 26,838
Other comprehensive income:
Transfer of surplus depreciation
- - - (33,614) - 33,614 -
Remeasurement of net defined benefits liability
- - - - - 1,836 1,836
Exchange gain on translating presentational currency
- - - - 609,324 - 609,324
Total comprehensive income - - - (33,614) 62,288 637,998
609,324
At 30 September 2020 3,006 1,000 1,125,012 828,538 969,830 597,524 3,524,910
Profit for the year - - - - - 131,349 131,349
Other comprehensive income:
Revaluation - - - 40,125 - - 40,125
Transfer of surplus depreciation
- - - (46,972) - 46,972 -
Remeasurement of net defined benefits liability
- - - - - (1,408) (1,408)
Exchange gain/(loss) on translating presentational currency
- - - - (271,935) - (271,935)
Total comprehensive income - - - (6,847) 176,913 (101,869)
(271,935)
At 30 September 2021 3,006 1,000 1,125,012 821,691 697,895 774,437 3,423,041
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
FOR THE YEAR ENDED 30 SEPTEMBER 2021
COMPANY STATEMENT OF CHANGES IN EQUITY (CONTINUED)
(ii) In US Dollar Foreign exchange reserve USD'000s
Issued share capital Preference share capital Share premium Revaluation reserve Retained earnings
USD'000s USD'000s USD'000s USD'000s USD'000s Total equity
USD'000s
At 1 October 2019 449 100 185,095 116,408 (168,059) 84,712 218,705
Profit for the year - - - - - 1,661 1,661
Other comprehensive income:
Transfer of surplus depreciation - - - (2,079) - 2,079 -
Remeasurement of net defined benefits liability - - - - - 114 114
Exchange losses on translating presentational currency - - - - (45,460) - (45,460)
Total comprehensive income - - - (2,079) (45,460) 3,854 (43,685)
At 30 September 2020 449 100 185,095 114,329 (213,519) 88,566 175,020
Profit for the year - - - - - 6,219 6,219
Other comprehensive income:
Revaluation - - - 1,900 - - 1,900
Transfer of surplus depreciation - - - (2,224) - 2,224 -
Remeasurement of net defined benefits liability - - - - - (66) (66)
Exchange losses on translating presentational currency - - - - 21,410 - 21,410
Total comprehensive income - - - (324) 21,410 8,377 29,463
At 30 September 2021 449 100 185,095 114,005 (191,109) 96,943 204,483
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021
ASSETS 2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
Goodwill 166,801 9,964 166,801 8,282
Property, plant and equipment 3,115,018 186,082 3,264,505 162,091
Investment in associate 40,468 2,417 43,826 2,176
Deferred tax asset 9,050 541 9,552 474
3,331,337 199,004 3,484,684 173,023
Current assets
Biological assets 358,997 21,445 176,305 8,754
Inventories 1,197,846 71,556 1,103,640 54,798
Trade and other receivables 234,076 13,983 132,668 6,587
Assets held for sale 170,550 10,188 175,654 8,722
Amounts due from related companies 4,202 251 9,337 464
Income tax recoverable 3,707 221 1,784 89
Cash and cash equivalents 201,539 12,039 111,136 5,518
2,170,917 129,683 1,710,524 84,932
Total assets 5,502,254 328,687 5,195,208 257,955
Share capital 3,006 449 3,006 449
Preference share capital 1,000 100 1,000 100
Share premium 1,125,012 185,095 1,125,012 185,095
Other reserves 2,715,588 44,022 2,641,721 1,582
3,844,606 229,666 3,770,739 187,226
Non-controlling interest (2,619) (156) (520) (26)
3,841,987 229,510 3,770,219 187,200
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021 (CONTINUED)
2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
Interest bearing liabilities 195,555 11,682 190,218 9,445
Leases 7,253 433 19,750 981
Deferred liability 8,891 531 11,389 565
Deferred tax liability 88,056 5,260 69,950 3,473
299,307 17,906 291,307 14,464
Interest bearing liabilities 210,709 12,587 326,899 16,231
Leases 12,418 742 23,259 1,155
Trade and other payables 464,103 27,723 321,648 15,971
Provisions 169,307 10,113 113,347 5,629
Amounts due to related companies - - 443 22
Taxation payable 13,771 823 41 2
Bank overdrafts 490,204 29,283 348,045 17,281
1,360,512 81,271 1,133,682 56,291
5,502,254 328,687 257,955
Total equity and liabilities 5,195,208
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
COMPANY STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021
ASSETS 2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
Non-current assets
Property, plant and equipment 2,166,483 129,420 2,476,394 122,959
Investments in subsidiaries 245,807 14,684 245,807 12,205
Investment in associate 40,468 2,417 43,826 2,176
2,452,758 146,521 2,766,027 137,340
Current assets
Biological assets 307,948 18,396 139,501 6,927
Inventories 772,972 46,174 814,081 40,421
Assets held for sale 170,550 10,188 175,654 8,722
Trade and other receivables 91,702 5,478 50,555 2,510
Amounts due from related companies 780,554 46,628 1,320,117 65,547
Income tax recoverable 2,520 151 565 28
Cash and cash equivalents 113,193 6,762 12,645 628
2,239,439 133,777 2,513,118 124,783
Total assets 4,692,197 280,298 5,279,145 262,123
EQUITY AND LIABILITIES
Capital and reserves
Share capital 3,006 449 3,006 449
Preference share capital 1,000 100 1,000 100
Share premium 1,125,012 185,095 1,125,012 185,095
Other reserves 2,294,023 18,839 2,395,892 (10,624)
3,423,041 204,483 3,524,910 175,020
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
COMPANY STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021 (CONTINUED)
2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
Non-current liabilities
Interest bearing liabilities 195,555 11,682 190,218 9,445
Leases 1,873 112 8,172 406
Deferred liability 2,124 127 3,356 167
Deferred tax liability 55,905 3,340 41,153 2,043
255,457 15,260 242,899 12,061
Current liabilities
Interest bearing liabilities 210,709 12,587 326,899 16,231
Leases 6,597 394 14,461 718
Trade and other payables 293,054 17,506 232,844 11,561
Provisions 119,649 7,147 61,200 3,039
Amounts due to related companies 77,273 4,616 705,110 35,011
Bank overdrafts 306,417 18,304 170,822 8,482
1,013,699 60,555 1,511,336 75,042
Total equity and liabilities 4,692,197 280,299 5,279,145 262,123
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
(Loss)/profit before taxation 203,971 9,658 (22,673) (1,402)
Finance costs 115,282 5,458 92,322 5,709
Loss on disposal of property, plant and equipment 2,260 107 4,796 297
Depreciation 160,471 7,598 141,408 8,745
Share of loss on equity accounted investment 3,358 159 3,177 196
Profit on discontinued operations - - 1,529 95
Fair value price adjustment (6,651) (315) 14,381 889
Defined benefits movement 4,473 212 (3,185) (197)
Defined benefits paid (6,971) (330) (1,788) (111)
Net unrealised foreign exchange losses (19,422) (920) 185,438 11,468
Earnings before interest, tax, depreciation and amortisation, fair value 456,771 21,627 415,405 25,689
adjustments and net unrealised foreign exchange losses
Decrease/(increase) in biological assets (176,041) (8,335) (20,269) (1,253)
Increase in inventory (94,206) (4,461)) (162,481) (10,048)
(Increase)/decrease in trade and other receivables (101,408) (4,802) (34,643) (2,142)
Decrease/(Increase) in amounts due from related companies 5,135 243 (2,410) (149)
Increase/(decrease) in trade and other payables 198,415 9,395 122,496 7,575
Increase in amounts due to related companies (443) (21) 192 12
Income tax paid (4,734) (224) (5,525) (342)
Net cash inflow from operating activities 283,489 13,422 312,765 19,342
Investing activities
Purchase of property, plant and equipment (116,629) (5,522) (92,664) (5,731)
Proceeds from the sale of assets 51 2 6,452 399
Proceeds from the sale of assets/investments - - 167,264 10,344
Net cash (outflow)/inflow (on)/ from investing activities (116,578) (5,520) 81,052 5,012
ZAMBEEF PRODUCTS PLC AND ITS
SUBSIDIARIES
FOR THE YEAR ENDED 30 SEPTEMBER 2021 (CONTINUED)
CONSOLIDATED STATEMENT OF CASH FLOWS
2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
Net cash (outflow)/ inflow before financing activities 166,911 7,902 393,817 24,354
Financing activities
Long term loans repaid (262,705) (12,439) (162,217) (10,032)
Receipt from term loans 220,000 10,417 - -
Repayment short term funding (477,906) (22,628) (623,231) (38,542)
Receipt of short-term funding 449,619 21,289 487,320 30,137
Lease finance repayment (32,513) (1,539) (35,478) (2,194)
Lease finance obtained - - 14,329 886
Finance costs (115,282) (5,458) (92,322) (5,709)
Net cash outflow on financing activities (218,787) (10,358) (411,599) (25,454)
Decrease in cash and cash equivalents (51,876) (2,456) (17,782) (1,100)
Cash and cash equivalents at beginning of the year (236,909) (11,763) (274,425) (20,790)
Effects of exchange rate changes on the balance of cash held in foreign 120 (3,025) 55,298 10,127
currencies
Cash and cash equivalents at end of the year (288,665) (17,244) (236,909) (11,763)
Represented by:
Cash in hand and at bank 201,539 12,039 111,136 5,518
Bank overdrafts (490,204) (29,283) (348,045) (17,281)
(288,665) (17,244) (236,909) (11,763)
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Note 2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
Cash inflow from operating activities
Profit before taxation 147,144 6,967 34,203 2,115
Finance costs 84,981 4,024 68,747 4,252
Depreciation 14 87,466 4,141 80,462 4,976
Fair value price adjustment 16 3,323 157 15,464 956
Loss on disposal of property, plant and equipment 553 26 1,216 75
Share of loss on equity accounted investment 3,358 159 3,177 196
Defined benefit movement 2,241 106 312 19
Defined benefits paid (3,473) (164) (611) (38)
Profit on discontinued operations - - 1,529 95
Net unrealised foreign exchange differences 34,065 1,613 180,954 11,193
Earnings before interest, tax, depreciation and amortisation 359,658 17,029 385,453 23,839
Increase in biological assets (168,448) (7,976) (2,286) (141)
Decrease/(increase) in inventory 41,109 1,946 (130,482) (8,069)
Increase in trade and other receivables (41,147) (1,948) (22,402) (1,385)
(Increase)/decrease in amounts due from related companies 539,563 22,656 (275,999) (17,069)
Increase in trade and other payables w 5,747 74,340 4,597
Increase in amounts due to related companies (564,313) (26,719) 215,065 13,300
Income tax paid 10(c) (2,997) (142) (5,314) (329)
Net cash inflow from operating activities 220,968 10,461 238,375 14,743
Investing activities
Purchase of property, plant and equipment 14 (43,129) (2,042) (35,385) (2,188)
Proceeds from disposal of investment - - 167,264 10,344
Proceeds from sale of assets 157 7 4,205 260
Net cash (outflow)/inflow (on)/from investing activities (42,972) (2,035) 136,084 8,416
ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2021 (CONTINUED)
Note 2021 2021 2020 2020
ZMW'000s
USD'000s
ZMW'000s
USD'000s
Net cash inflow before financing activities 177,996 8,426 374,459 23,159
Financing activities
Long term loans repaid 29 (262,705) (12,439) (162,217) (10,032)
Receipt from term loans 29 220,000 10,417 - -
Short term funding repaid 29 (477,906) (22,628) (623,231) (38,542)
Short term funding obtained 29 449,619 21,289 487,320 30,137
Lease finance repayment 29 (27,476) (1,301) (30,835) (1,907)
Lease finance obtained 29 - - 14,329 886
Interest paid (84,981) (4,024) (68,747) (4,252)
Net cash outflow on financing activities (183,449) (8,686) (383,381) (23,710)
Increase/(decrease) in cash and cash equivalents (5,453) (260) (8,922) (551)
Cash and cash equivalents at beginning of the year (158,177) (7,854) (195,772) (14,381)
Effects of exchange rate changes on the balance of cash held in foreign (29,594) (3,429) 46,517 7,078
currencies
Cash and cash equivalents at end of the year 20 (193,224) (11,543) (158,177) (7,854)
Represented by:
Cash in hand and at bank 20 113,193 6,761 12,644 628
Bank overdrafts 20 (306,417) (18,304) (170,821) (8,482)
(193,224) (11,543) (158,177) (7,854)
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