REG - Zambeef Products PLC - Full Year Results
10/12/2024 10:30
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RNS Number : 5228P Zambeef Products PLC 10 December 2024
Zambeef Products plc
("Zambeef" or the "Group")
Full-year results for the year ended 30 September 2024
Zambeef (AIM: ZAM), the fully integrated cold chain food products and retail
business with operations in Zambia, Nigeria and Ghana, today announces its
audited results for the year ended 30 September 2024.
Financial Highlights
Figures in 000's 2024 2023 % 2024 2023 %
ZMW ZMW USD USD
Revenue 7,315,845 6,046,157 21.0% 295,113 331,478 -11.0%
Change in fair value of biological assets 1,040,358 643,197 61.7% 41,967 35,263 19.0%
Cost of sales (5,881,085) (4,846,092) 21.4% (237,237) (265,685) -10.7%
Gross profit 2,475,118 1,843,262 34.3% 99,843 101,056 -1.2%
Administrative expenses (1,682,765) (1,336,486) 25.9% (67,881) (73,272) -7.4%
Distribution Expenses (208,395) (96,287) 116.4% (8,406) (5,279) 59.2%
Impairment of investment in associate (34,370) - -100.0% (1,386) - -100.0%
Net impairment losses on financial assets (1,264) (2,713) -53.4% (51) (149) -65.8%
Other income/(expenses) (61,132) (46,419) 31.7% (2,466) (2,545) -3.1%
Operating profit 487,192 361,357 34.8% 19,653 19,811 -0.8%
Share of loss equity accounted investment - (2,595) 100.0% - (142) 100.0%
Net Finance costs and Income (294,531) (155,089) 89.9% (11,881) (8,503) 39.7%
Profit before taxation 192,661 203,673 -5.4% 7,772 11,166 -30.4%
Taxation charge (12,565) (72,851) -82.7% (507) (3,994) -83.8%
Group income for the year from continuing operations 180,096 130,822 37.7% 7,265 7,172 -0.7%
Profit/(Loss) from asset held for sale after tax - (10,604) 100.0% - (581) 100.0%
Group income for the period 180,096 120,218 49.8% 7,265 6,591 8.1%
EBITDA 732,657 554,662 32.1% 29,557 30,409 -2.8%
Gross Profit Margin 33.8% 30.5% 33.4% 30.5%
EBITDA Margin 10.0% 9.2% 9.5% 8.4%
Debt/Equity (Gearing) 41.8% 30.2% 41.8% 30.2%
Debt-To-EBITDA 2.8 2.5 11.0% 2.6 2.2 19.5%
PERFORMANCE OVERVIEW
The year ended 30 September 2024 saw the Group achieve revenue growth (in
Kwacha and a decline in USD) with volume growth in key categories compared to
the prior year, highlighting the Group's agility and adaptability in an
ever-evolving market and economic landscape. The management team's relentless
focus on optimizing top-line growth through effective revenue management,
alongside rigorous cost control measures, has played a vital role in driving
this performance success.
In a challenging operating and economic environment, the Company's relative
successes underscore the strength of our organization's talent and the value
of our enduring partnerships with customers, suppliers, and local communities.
Reflecting on the period under review, it is evident that our focus on
achieving commercial objectives, maintaining operational excellence, and
driving cost optimization has propelled the business forward and strengthened
our position across key sectors of operation.
The financial period saw considerable fluctuations in the Kwacha, with a
depreciation of 26% against the USD. This volatility was driven by high USD
demand, reduced mining activity, and sustained global interest rate hikes,
impacting foreign investment in local bond auctions. Inflation closed the
period at 15.6%, up from 12% the previous year, driven by currency
depreciation and rising food and energy prices.
The Group achieved a revenue of ZMW 7.3 billion (USD 295.1 million),
accompanied by a gross profit of ZMW 2.5 billion (USD 99.8 million). This
represents a year-on-year increase of 21% and 34% in kwacha terms,
respectively, and a year-on-year decrease of 11% and 1% in US dollar terms
respectively.
KEY FINANCIAL HIGHLIGHTS
The Group delivered a strong operating profit of ZMW 487.2 million (USD 19.7
million), reflecting a 35% increase in kwacha terms despite a marginal decline
of 1% in US dollar terms compared to the prior year's ZMW 361.4 million (USD
19.8 million). This performance underscores the effectiveness of our cost
optimization initiatives and the resilience of our operations amidst a
challenging environment.
Volume growth was recorded across most divisions, driven by disciplined
revenue management and the successful execution of sales and operational
strategies, building on the momentum established at the mid-point of the
financial year.
However, escalating costs of key inputs and commodities-such as fuel, imported
materials, and grain-placed upward pressure on production costs across the
Group. Additionally, interest expenses doubled, primarily due to increased
debt to fund expansion activities, coupled with rising market interest rates.
The Group recorded a profit after tax of ZMW 180.1 million (USD 7.4 million)
for the financial year, compared to ZMW 130.8 million (USD 7.2 million) in the
previous financial year.
Despite these challenges, the Group remains steadfast in its commitment to
delivering high-quality products, strengthening brand equity, and driving
value creation. With a diversified and vertically integrated business model,
strong brands, and a capable management team, we are well-positioned to
capitalize on future opportunities and navigate potential risks with
resilience and agility.
Commenting on these results, Chairman Mr. Patrick Wanjelani said:
"The financial year posed significant challenges, including high inflation and
volatile exchange rates that affected operations from early in the period.
While the government's engagement with international bondholders has advanced
the debt restructuring process, underlying economic pressures continue to have
an adverse effect on the business environment. Reduced copper mining activity
and adverse climate conditions continuing to impact crop yields and energy
generation, further stress the macroeconomic landscape."
"The several challenges experienced during the year such as the energy
deficits led to rising costs of critical inputs like electricity, grain, and
imported materials. The local currency depreciation and El Niño weather
effects applied pressure on our margins during the financial year. The Central
Bank's tightened monetary policy, aimed at curbing inflation, has further
affected consumer spending as the cost of living continues to rise in the
country."
"Despite the several challenges experienced, management continued to focus on
its strategy of revenue maximization, volume growth, and cost optimisation.
Through these concerted efforts, the Group achieved revenue growth over the
prior year (in Kwacha and a decline in USD), underscoring the resilience of
our vertically integrated business model in delivering long-term value to our
shareholders."
"The Group remains committed to delivering value to shareholders and is
positioned to navigate potential business threats while capitalising on
profitable opportunities."
Copies of Zambeef's Annual Report and Accounts for the year ended 30
September 2024 and Notice of AGM will shortly be sent to shareholders and
made available on the Group's website and a further announcement will be made
at this time.
For further information, please visit www.zambeefplc.com or contact:
Zambeef Products plc Tel: +260 (0) 211 369003
Faith Mukutu, Chief Executive Officer
Patrick Kalifungwa, 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 (ECM)
Autus Securities Limited
Mataka Nkhoma, Sponsoring Broker
Tel:
+260 (0) 761 002 002
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014. Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to be in the
public domain.
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 246 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 10.4 million broilers and 26.6
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 its dairy has a capacity of 140,000 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. www.zambeefplc.com
CHAIRMAN'S REVIEW
Dear Shareholder,
As I present my inaugural report, I do so with a deep sense of responsibility
and reflection, following the untimely passing of my predecessor, Mr. Michael
Mundashi SC. His leadership, wisdom, and unwavering dedication to Zambeef
Products Plc have left an enduring legacy that continues to inspire us all.
Joining the Board and assuming the role of Chairman under such circumstances
has been both a privilege and a profound reminder of the immense contributions
he made to our organization.
While we mourn his loss, I am fully committed to honoring his vision and
steering Zambeef forward with the same passion and purpose that defined his
tenure. This report highlights our achievements, acknowledges the challenges
we face, and reaffirms our dedication to securing a resilient and prosperous
future for Zambeef.
The financial year posed significant challenges, including high inflation and
volatile exchange rates that affected operations from early in the period.
While the government's engagement with international bondholders has advanced
the debt restructuring process, underlying economic pressures continue to have
an adverse effect on the business environment. Reduced copper mining activity
and adverse climate conditions continuing to impact crop yields and energy
generation, further stress the macroeconomic landscape.
The several challenges experienced during the year such as the energy deficits
led to rising costs of critical inputs like electricity, grain, and imported
materials. The local currency depreciation and El Niño weather effects
applied a lot pressure on our margins during the financial year. The Central
Bank's tightened monetary policy, aimed at curbing inflation, has further
affected consumer spending as the cost of living continues to rise in the
country.
Despite the several challenges experienced, management continued to focus on
its strategy of revenue maximization, volume growth, and cost optimisation.
Through these concerted efforts, the Group achieved revenue growth over the
prior year (in Zambian Kwacha and a decline in USD), underscoring the
resilience of our vertically integrated business model in delivering long-term
value to our shareholders.
Strategy
Despite the economic challenges, the Board remains steadfast in achieving
Zambeef's strategic objectives. Our five-year roadmap is guided by four key
pillars:
§ Strengthening our core business: We remain dedicated to strengthening our
core business through targeted investments aimed at expanding our market share
and consolidating our position in key sectors.
§ Human Capital Development: Our tailored human capital strategy ensures that
our workforce is well-equipped to support the Group's success, with a focus on
skills development aligned with our strategic goals.
§ Enhancing Strategic Partnerships: Strategic partnerships play a vital role
in enhancing our competitive edge and market position. We are committed to
strengthening these partnerships to capitalize on synergies and opportunities
for growth. Our commitment to our customers, suppliers, lenders and other
partners remains resolute.
§ Divestiture of Non-Core Assets: To optimize resource allocation, we are
actively pursuing divestiture of non-core assets, allowing greater focus on
our primary business areas.
We continue to make progress on our five-year, $100 million expansion plan
announced in 2022. The Mpongwe Farm expansion has advanced substantially, with
the first phase contributing significantly to production efficiency across the
food value chain. The successful harvest of 9,460 metric tonnes of wheat in
2023 marked a key milestone in our operational capabilities.
During the year, we had the honour of hosting the Republican President, Mr.
Hakainde Hichilema, who inaugurated the wheat flour milling plant, launched
our first-ever winter maize harvest in Mpongwe, and joined us in celebrating
Zambeef's 30th anniversary. Other notable project completions include the new
hatchery and cheese plant, further diversifying our product offerings.
The Economic Environment
The financial period saw considerable fluctuations in the Kwacha, with a
depreciation of 26% against the USD. This volatility was driven by high USD
demand, reduced mining activity, and sustained global interest rate hikes,
impacting foreign investment in local bond auctions. Inflation closed the
period at 15.6%, up from 12% the previous year, driven by currency
depreciation and rising food and energy prices.
Noteworthy was the resurgence in copper prices, which have seen an upward
trend during the first half opening at USD 8,200/MT and closing at USD
10,129/MT, fuelled by the green energy transition. However, subdued production
levels continued to impede the realization of full value, consequently
impacting the economy's foreign exchange earnings potential. These dynamics
underscore the delicate balance between global market forces and domestic
production capacities.
Outlook
Looking ahead, we expect copper prices to continue their upward trend,
bolstering foreign exchange earnings. However, the tight monetary policy and
constrained government spending on food aid, following a poor crop season,
could further strain consumer spending.
Zambeef's vertically integrated model and trusted brands position us well to
seize emerging opportunities. We remain committed to navigating these complex
conditions and reaffirm our commitment to long-term growth and sustainability.
British International Investment (BII) Partnership
16 September 2024 marked the eighth anniversary of British International
Investment plc's (BII) investment in the Company. BII is the Company's largest
ordinary shareholder with 52.6 million ordinary shares and 100,057,658
convertible redeemable preference shares ("Preference Shares") in Zambeef
Products plc. The Company has the right to redeem all or part of the
Preference Shares at the redemption price, which would give BII a 12%
compounded annual return on their investment, subject to a minimum of USD 0.77
per share (less dividends received). However, the likelihood of such a
repayment by the Company in this new financial year, or in the medium term, is
currently considered by the Board to be uncertain. The eighth anniversary
materially increased BII's conversion rights on their Preference Shares from
one-for-one new ordinary share, to one for 3.0833 (recurring) new ordinary
shares.
Acknowledgement
During the year, we announced the resignation of Mr. Roman Frenkel,
Non-Executive Director, effective 9 April, 2024. Mr. Frenkel has been an
integral part of our Board for the past three years, bringing insight and
expertise that have enriched our deliberations and decisions.
We extend our heartfelt gratitude to Mr. Frenkel for his significant
contributions to Zambeef Products Plc during his tenure. His dedication and
strategic guidance have been invaluable, and we wish him continued success in
all his future endeavours.
I am pleased to advise that on 1 August 2024, Mr Patrick Kalifungwa was
appointed as the Chief Financial Officer and Executive Director of Zambeef
Products Plc. He took over from Mr M'boo Mumba who resigned on 17th July 2024.
I wish Mr Kalifungwa every success in his new role.
I am indebted to my fellow Board members for their devoted leadership
throughout the year and I convey my sincere appreciation to our diligent
management and staff for yet another year of commendable performance. The
steadfast tenacity and fortitude shown in the face of challenges is a
testament to the team. I take great pride in our collective achievements thus
far and I am eager for the promising opportunities that will shape our future
progress. Together, we will continue to build upon this foundation of success.
As we navigate the complexities of the current environment, we remain
steadfast in our commitment to driving sustainable growth and delivering on
our promises to our shareholders. Together, we will honour Mr. Mundashi's
legacy by upholding the principles of excellence and integrity that he
exemplified.
Patrick Wanjelani
Chairman
Chief Executive Officer's Report
Overview
The year ended 30 September 2024 saw the group achieve revenue growth (in
Zambian Kwacha and a decline in USD) with volume growth in key categories
compared to the prior year, highlighting our agility and adaptability in an
ever-evolving market and economic landscape. Our management team's relentless
focus on optimizing top-line growth through effective revenue management,
alongside rigorous cost control measures, has played a vital role in driving
our success.
Our relative successes in a difficult operating and economic environment serve
as a testament to the exceptional talent within our organization and the
enduring partnerships we have cultivated with our customers, suppliers, and
local communities. As we reflect on the past period, it is clear that our
unwavering dedication to commercial objectives, coupled with our commitment to
operational excellence and cost optimization, has not only pushed us forward
but also fortified our position in several sectors in which we operate.
Financial Performance
Despite operating within a challenging trading environment characterized by a
countrywide energy crisis, subdued crop yields, constrained consumer spending
and a tight monetary policy, the Group delivered robust results for the year
ended 30 September 2024. Escalating costs of vital inputs and commodities,
such as fuel, imported electricity, imported farming inputs and grain resulted
in increased costs for our production divisions. However, the Group
demonstrated volume growth across key categories, leveraging the momentum from
the 2023 financial year. This was achieved through a meticulous approach to
revenue management and effective sales and operational execution.
The Group achieved a revenue of ZMW 7.3 billion (USD 295.1 million),
accompanied by a gross profit of ZMW 2.5 billion (USD 99.8 million). This
represents a year-on-year increase of 21% and 34% in kwacha terms,
respectively, and a year-on-year decrease of 11% and 1% in US dollar terms
respectively.
Furthermore, the Group delivered an operating profit of ZMW 487.2 million (USD
19.7 million), marking an increase of 35% in kwacha terms and a decrease of 1%
in US dollar terms compared to the prior year's ZMW 361.4 million (USD 19.8
million). This underscores the effectiveness of our commercial strategy and
the successful execution of strategic expansion projects.
The Group remains steadfast in its commitment to fortifying its brand equity
and providing customers with high-quality products. With our diversified and
vertically integrated business model, robust brands, and effective management,
we are well-positioned to capitalize on future opportunities and navigate
potential threats with resilience and agility.
Strategic focus
Our strategic focus remains to optimise our existing asset utilisation,
maximise return and drive profitability. We remain committed to our strategy
of focussing on our core businesses, in which we strive to be the best in
class. The continued investment in key strategic assets and divestiture of
non-core assets will enable us to increase cash generation and profitability
and therefore continue to deliver shareholder value. I am pleased to report
that our $100 million medium-term expansion plans are proceeding as scheduled.
We have maintained our dedication to enhancing capacity and efficiency in
Cropping, Milling, Stockfeed, Dairy, and Poultry.
Our strategic focus in optimising costs and rationalising the Group's
operations continued throughout the period.
Outlook
Looking ahead, our strong brand presence will continue to serve as a
cornerstone in maintaining customer loyalty. Additionally, our vertically
integrated business model positions us favourably, ensuring a dependable
supply chain and market for our products. We anticipate a stabilization in the
economic environment following the recent understanding reached by the
government with international bondholders regarding debt restructuring,
coupled with the expected upswing in copper production and prices over the
medium to long term. With these factors in mind, the Group is well-positioned
to capitalize on the opportunities arising from a positive economic outlook,
strategically investing for the future in anticipation of an upturn in
consumer spending.
Our ongoing commitment to consolidating our balance sheet through the disposal
of non-core assets, optimising existing assets and the expansion of capacity
remains a central focus. These measures are geared towards enhancing
shareholder value, a goal we remain dedicated to achieving. By fortifying our
financial foundation and strengthening our operational capabilities, we are
poised for sustained growth and prosperity in the years ahead.
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
Table 2: Divisional financial summary in USD'000
Retailing & Cold Chain Food Products
The financial year was marked with sales volume growth vs prior year, despite
operating within a competitive and financially constrained environment. Our
ability to retain and increase volumes was driven by meticulous sales
execution and price optimization all of which had a direct impact on overall
revenue growth.
The outbreak of the anthrax virus in the first half resulted in animal
movement restrictions and diminished consumer confidence in Beef, leading to
slowed volume growth. However, volumes surged in the second half, driven by a
lower relative price of Beef following availability of standard beef category
as farmers looked to offload cattle following the drought season owing to
limited pasture. The accelerated volume turnaround in the Beef Division in the
second half was helped by other protein sources which struggled with the
impact of relatively higher feed costs. Beef consistently maintained a
volume-based strategy, prioritizing market share recovery and competitive
positioning over margin maximisation.
The first half of the year saw sluggish demand for chicken with gradual
improvements in the second half due to variability in consumer spend. Demand
for day-old chicks remained strong fuelled by small scale demand, and
therefore contributed positively to the Poultry division's significant growth
in profitability.
The Dairy segment profitability was negatively impacted by a significant
increase in feeding costs, imported electricity costs and operational
challenges in our Dairy farm.
Despite the challenges noted above, the division's gross profit grew by 20.9%
in kwacha terms, with a decline of 11.1% in USD terms compared to the prior
year.
Cropping and Milling
The Cropping segment performed well in spite of the drought related decline in
yields when compared to prior year. Despite the drought, high grain prices
particularly for the Summer Crop helped enhance this position. The Cropping
segment delivered a commendable operating profit performance compared to the
previous year. In addition to the higher grain prices, efficiencies in input
application helped negate the impact of lower yields. The business was able to
mitigate the impact of load shedding on the irrigated winter crop through the
contraction of imported power via a Power Supply Agreement with the Zambia
Electricity Supply Corporation.
The stockfeed segment also experienced slightly higher volume growth than
prior year supported by the newly installed pelleting capacity in Mpongwe
despite a period of high pricing necessitated by the rising cost of inputs.
The impact of pricing of Stockfeed did adversely affect the upstream value
chain products.
The Flour segment experienced double-digit growth in volumes, attributed to
the implementation of effective sales strategies and innovation which saw good
demand for flour.
Acknowledgements
I would like to extend my gratitude to our Board of Directors for their
guidance and support. I am also indebted, to all our dedicated staff and
partners, for their invaluable contributions to the ongoing success of the
Group.
Faith Mukutu
Chief Executive Officer
10 December 2024
Statement of profit or loss and other comprehensive income
Notes Group Company
Continuing operations 2024 2023 2024 2023
K'000 K'000 K'000 K'000
Revenue from contracts with customers 5(i) 7,315,845 6,046,157 6,939,511 3,384,408
Change in fair value of biological assets 16 1,040,358 643,197 933,588 568,975
Cost of sales of goods 7 (5,881,085) (4,846,092) (5,861,282) (3,046,883)
Gross profit 2,475,118 1,843,262 2,011,817 906,500
Other (expenses)/income 6 (61,132) (46,419) (74,116) (18,064)
Net impairment losses on financial assets 4(b) (1,264) (2,713) 1,802 (1,768)
Impairment of investment in associate 15 (34,370) - (34.370) -
Distribution expenses 7 (208,395) (96,287) (190,771) (1,302)
Administrative expenses 7 (1,682,765) (1,336,486) (1,431,766) (741,469)
Operating profit 487,192 361,357 282,596 143,897
Net Finance costs and income 8 (294,531) (155,089) (294,188) (123,921)
Share of loss from equity investment 15(ii) - (2,595) - (2,595)
Profit/(loss) before income tax 192,661 203,673 (11,592) 17,381
Income tax expense - continuing operations 10 (12,565) (72,851) 14,748 (15,704)
Profit from continuing operations 180,096 130,822 3,156 1,677
Loss from discontinued operations after tax 20(i) - (10,604) - (10,604)
Profit/(loss) from continued and discontinued operations 180,096 120,218 3,156 (8,927)
Profit/(loss) attributable to:
Owners of Zambeef Products PLC 179,840 118,612 3,156 (8,927)
Non-controlling interests 256 1,606 - -
180,096 120,218 3,156 (8,927)
Other comprehensive income:
Items that maybe reclassified to profit or loss
Translation differences - foreign operations 22 (35,821) (40,617) - -
Items not reclassified to profit or loss
Revaluation surplus 23 5,734 1,003,412 - 977,426
Actuarial remeasurement losses 26(i) (2,523) (768) (2,523) (425)
Deferred income tax 25 133,328 (98,516) 128,438 (97,751)
Other comprehensive income for the year 100,718 863,511 125,915 879,250
Total comprehensive income for the year 280,814 983,729 129,071 870,323
Statement of profit or loss and other comprehensive income (continued)
Notes Group Company
2024 2023 2024 2023
K'000 K'000 K'000 K'000
Total comprehensive income for the year is attributable to:
Owners of Zambeef Products Plc 286,575 990,425 129,071 870,323
Non-controlling interests (5,761) (6,696) - -
280,814 983,729 129,071 870,323
Basic earnings per share Ngwee Ngwee Ngwee Ngwee
Continuing operations 30 59.83 42.99 1.05 0.56
Discontinued operations 30 - (3.53) - (3.53)
Total basic earnings per share 59.83 39.46 1.05 (2.97)
Diluted earnings per share
Continuing operations 30 44.89 32.25 0.79 0.42
Discontinued operations 30 - (2.65) - (2.65)
Total diluted earnings per share 44.89 29.60 0.79 (2.23)
Consolidated Statement of financial position
30-Sept-24 30-Sept-23
ASSETS Notes K'000 K'000
Non-current assets
Property, plant and equipment 12 5,577,265 4,818,533
Goodwill 14 25,015 25,015
Investment in associate 16(ii) - 34,370
Biological assets 17(i) 143,972 123,359
5,746,252 5,001,277
Current assets
Biological assets 17(i) 296,923 285,039
Inventories 18 2,088,778 1,656,487
Trade and other receivables 19 346,130 332,703
Cash and cash equivalents 20 334,415 271,222
Current assets excl assets classified as held for sale 3,066,246 2,545,451
Assets classified as held for sale 21(iii) - 157,640
Total current assets 3,066,246 2,703,091
Total assets 8,812,498 7,704,368
EQUITY
Share capital 22 3,006 3,006
Share premium 22 1,125,012 1,125,012
Preference share capital 22 1,000 1,000
Foreign currency translation reserve 23 633,440 660,390
Revaluation reserve 24 2,054,090 1,964,087
Retained earnings 1,156,637 930,261
Attributable to owners of parent entity 4,973,185 4,683,756
Non-controlling interests (NCI) (15,245) (6,630)
4,957,940 4,677,126
LIABILITIES
Non-current liabilities
Lease liabilities 13(a) 13,350 15,622
Borrowings 25 856,362 687,679
Deferred income tax 26 154,586 302,017
Defined benefit obligations 27(i) 1,835 1,631
1,026,133 1,006,949
Current liabilities
Lease liabilities 13(a) 8,578 6,448
Borrowings 25 1,525,671 972,827
Trade and other payables 28 917,674 834,191
Contract liabilities 29 357,999 164,063
Current income tax 11(ii) 18,503 42,764
2,828,425 2,020,293
Total equity and liabilities 8,812,498 7,704,368
Consolidated statement of changes in equity
Share Share premium Preference share capital Foreign currency translation reserve Revaluation reserve Retained earnings Total attributable to owners of parent entity Non-controlling interests Total
Capital
Year ended 30 September 2023 K'000 K'000 K'000 K'000 K'000 K'000 K'000 K'000
At start of year 3,006 1,125,012 1,000 692,705 1,113,119 758,489 3,693,331 66 3,693,397
Profit for the year - - - - - 118,612 118,612 1,606 120,218
Other comprehensive income:
Revaluation surplus - - - - 1,003,412 - 1,003,412 - 1,003,412
Transfer of excess depreciation - - - - (53,928) 53,928 - - -
Actuarial remeasurement losses - - - - - (768) (768) - (768)
Deferred income tax (Note 25) - - - - (98,516) - (98,516) - (98,516)
Translation differences (Note 22) - - - (32,315) - - (32,315) (8,302) (40,617)
- - - (32,315) 850,968 53,160 871,813 (8,302) 863,511
Total comprehensive income for the year - - - (32,315) 850,968 171,772 990,425 (6,696) 983,729
At end of year 3,006 1,125,012 1,000 660,390 1,964,087 930,261 4,683,756 (6,630) 4,677,126
Year ended 30 September 2024
At start of year 3,006 1,125,012 1,000 660,390 1,964,087 930,261 4,683,756 (6,630) 4,677,126
Profit for the year - - - - - 179,840 179,840 256 180,096
Other comprehensive income:
Revaluation surplus - - - - 5,734 - 5,734 - 5,734
Transfer of excess depreciation - - - - (49,059) 49,059 - - -
Actuarial remeasurement losses - - - - - (2,523) (2,523) - (2,523)
Deferred income tax (Note 25) - - - - 133,328 - 133,328 - 133,328
Translation differences (Note 22) - - - (26,950) - - (26,950) (8,871) (35,821)
- - - (26,950) 90,003 46,536 109,589 (8,871) 100,718
Total comprehensive income for the year - - - (26,950) 90,003 226,376 289,429 (8,615) 280,814
At year end 3,006 1,125,012 1,000 633,440 2,054,090 1,156,637 4,973,185 (15,245) 4,957,940
Statement of cash flows
Group Company
2024 2023 2024 2023
Notes K'000 K'000 K'000 K'000
Cash generated from/(used in) operations 30(i) 556,107 404,081 246,182 28,330
Interest paid on borrowings 30(ii) (211,132) (44,646) (211,132) (44,646)
Interest paid on bank overdrafts 30(ii) (118,669) (87,323) (118,669) (57,471)
Interest paid on leases 30(ii) (3,322) (2,676) (3,322) (1,312)
Benefits paid 27(i) (2,597) (3,422) (2,597) (238)
Income tax paid 11(ii) (49,036) (88,323) (28,209) (34,233)
Net cash inflow/(outflow) from operating activities 171,351 177,691 (117,747) (109,570)
Cash flows from investing activities
Purchase of property, plant and equipment 12 (815,281) (817,295) (538,147) (504,998)
Proceeds from disposal assets 9,309 4,025 8,760 6,165
Net cash outflow from investing activities (805,972) (813,270) (529,387) (498,833)
Cash flows from financing activities
Proceeds from borrowings 30(ii) 1,369,057 916,396 1,369,057 916,396
Principal repayments of borrowings 30(ii) (739,519) (526,257) (739,519) (526,257)
Principal elements of lease payments 30(ii) (7,441) (7,319) (7,441) (6,016)
Net cash inflow from financing activities 622,097 382,820 622,097 384,123
Net decrease for the year (12,524) (252,759) (25,037) (224,280)
Movement in cash and cash equivalents
At start of year (380,467) (127,708) (252,156) (27,876)
Net decrease (12,524) (252,759) (25,037) (224,280)
Effects of exchange differences 5,126 11,898
Balances from business combination (note 35) - - (164,222) -
At year end 20 (387,865) (380,467) (429,517) (252,156)
Extracted from the Supplementary Information within the 2024 Annual Report.
This information presented in USD does not form part of the Financial
Statements and is therefore unaudited
Statement of profit or loss and other comprehensive income
Group Company
2024 2023 2024 2023
US$'000 US$'000 US$'000 US$'000
Revenue from contracts with customers 295,113 331,478 279,932 185,549
Change in fair value of biological assets 40,574 35,263 36,267 31,194
Cost of sales of providing goods (235,844) (265,685) (235,044) (167,044)
Gross profit 99,843 101,056 81,155 49,699
Other income/(expenses) (2,466) (2,545) (2,990) (990)
Net impairment losses on financial assets (51) (149) 73 (97)
Impairment of investment in associate (1,386) - (1,386) -
Distribution expenses (8,406) (5,279) (7,695) (71)
Administrative expenses (67,881) (73,272) (57,756) (40,651)
Operating profit 19,653 19,811 11,401 7,890
+
Net finance income and costs (11,881) (8,503) (11,867) (6,794)
Share of loss from equity investment - (142) - (142)
Profit before income tax 7,772 11,166 (466) 954
Income tax expense (407) (3,994) 735 (861)
(Loss)/profit from continuing operation 7,365 7,172 269 93
Profit from asset held for sale - (581) - (581)
Profit for the year 7,365 6,591 269 (488)
Profit attributable to:
Owners of Zambeef Products PLC 7,355 6,503 269 (488)
Non-controlling interests 10 88 - -
7,365 6,591 269 (488)
Other comprehensive income:
Items that maybe reclassified to profit or loss
Translation losses on foreign operations (1,445) (2,227) - -
Translation losses on Mpongwe Farms - - - -
Items not reclassified to profit or loss
Revaluation surplus 231 55,012 - 53,587
Actuarial remeasurement losses (102) (42) (102) (23)
Deferred income tax 5,378 (5,401) 5,181 (5,359)
Other comprehensive income for the year 4,062 47,342 5,079 48,205
Total comprehensive income for the year 11,427 53,933 5,348 47,717
Statement of profit or loss and other comprehensive income (continued)
Group Company
2024 2023 2024 2023
US$'000 US$'000 US$'000 US$'000
Total comprehensive income for the period is attributable to:
Owners of Zambeef Products Plc 11,659 54,300 5,348 47,717
Non-controlling interests (232) (367) - -
11,327 53,933 5,348 47,717
Basic earnings per share
Continued operations 2.41 2.36 0.09 0.03
Discontinued operations - (0.19) - (0.19)
Total basic earnings per share 2.41 2.17 0.09 (0.16)
Diluted earnings per share
Continued operations 1.81 1.77 0.07 0.02
Discontinued operations - (0.15) - (0.15)
Total diluted earnings per share 1.81 1.62 0.07 (0.13)
Consolidated statement of financial position
30-Sept-24 30-Sept-23
ASSETS US$'000 US$'000
Non-current assets
Property, plant and equipment 210,146 229,236
Goodwill 943 1,190
Investment in associate - 1,635
Biological assets 5,425 5,869
216,514 237,930
Current assets
Biological assets 11,188 13,560
Inventories 78,703 78,805
Trade and other receivables 13,042 15,828
Cash and cash equivalents 12,600 12,903
Current assets excl. assets classified as held for sale 115,533 121,096
Assets classified as held for sale - 7,500
Total current assets 115,533 128,596
Total assets 332,047 366,526
EQUITY
Share capital 449 449
Share premium 185,095 185,095
Preference share capital 100 100
Foreign currency translation reserve 23,867 49,843
Revaluation reserve 77,395 51,360
Retained earnings (99,522) (64,023)
Attributable to owners of parent entity 187,384 222,824
Non-controlling interests (574) (315)
186,810 222,509
LIBILITIES
Non-current liabilities
Borrowings 32,267 32,715
Lease liabilities 503 743
Deferred income tax 5,825 14,368
Defined benefit obligations 69 78
38,664 47,904
Current liabilities
Borrowings 57,486 46,281
Lease liabilities 323 307
Trade and other payables 34,578 39,686
Contract liabilities 13,489 7,805
Current income tax 697 2,034
106,573 96,113
Total equity and liabilities 332,047 366,526
Company statement of financial position
30-Sept-24 30-Sept-23
ASSETS US$'000 US$'000
Non-current assets
Property, plant and equipment 180,527 171,046
Right of use assets - -
Investment in subsidiaries 3,507 4,949
Investment in associate - 1,635
Biological assets 5,425 5,869
189,459 183,499
Current assets
Biological assets 8,244 11,056
Inventories 72,703 52,544
Trade and other receivables 17,795 60,771
Cash and cash equivalents 11,031 9,984
Current assets excl. assets classified as held for sale 109,773 134,355
Assets classified as held for sale - 7,500
Total current assets 109,773 141,855
Total assets 299,232 325,354
EQUITY
Share capital 449 449
Share premium 185,095 185,095
Preference share capital 100 100
Foreign currency translation reserve 25,887 42,945
Revaluation reserve 69,619 65,256
Retained earnings (134,556) (96,968)
146,594 196,877
LIABILITIES
Non-current liabilities
Lease liabilities 503 352
Borrowings 32,267 32,715
Deferred income tax 4,079 10,506
Defined benefit obligations 69 43
36,918 43,616
Current liabilities
Lease liabilities 323 299
Borrowings 57,486 37,257
Trade and other payables 44,196 42,152
Contract liabilities 13,439 4,518
Current income tax 276 635
115,720 84,861
Total equity and liabilities 299,232 325,354
Statement of cash flows
Group Company
2024 2023 2024 2023
$'000 $'000 $'000 $'000
Cash generated from/(used in) operations 22,433 22,154 9,931 1,553
Interest paid on borrowings (8,517) (2,448) (8,517) (2,448)
Interest paid on borrowings (4,787) (4,787) (4,787) (3,151)
Interest paid on leases (134) (147) (134) (72)
Benefits paid (105) (188) (105) (13)
Income tax paid (1,978) (4,842) (1,138) (1,877)
Net cash inflow/(outflow) from operating activities 6,912 9,742 (4,750) (6,007)
Cash flows from investing activities
Purchase of property, plant and equipment (32,887) (44,808) (21,708) (27,686)
Proceeds from disposal assets 376 221 353 338
Net cash outflow from investing activities (32,512) (44,587) (21,355) (27,348)
Cash flows from financing activities
Proceeds from borrowings 55,226 50,241 55,226 50,241
Principal repayments of borrowings (29,831) (28,852) (29,831) (28,852)
Principal elements of lease payments (300) (401) (300) (330)
Net cash inflow from financing activities 25,095 20,988 25,095 21,059
Net increase/(decrease) for the year (505) (13,857) (1,010) (12,296)
Movement in cash and cash equivalents
At start of year (18,100) (8,083) (11,996) (1,764)
Net decrease (505) (13,857) (1,010) (12,296)
Effects of exchange rate changes on the balance of cash held in foreign 3,991 3,840 3,447 2,064
currencies
Balances from business combination (note 34) - (6,625)
At year end (14,614) (18,100) (16,184) (11,996)
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. END FR GZMMZGGZGDZMRecent news on Zambeef Products
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