REG - Zambeef Products PLC - Half Year Trading Update

Zambeef ProductsAnnouncement

27/04/2022 13:00

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RNS Number : 5639J  Zambeef Products PLC  27 April 2022

27 April, 2022

Zambeef Products PLC

("Zambeef" or the "Group")

 

HALF YEAR TRADING UPDATE

Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business
with operations in Zambia, Nigeria and Ghana, is pleased to provide the
following update on trading.

 

The Group announces that for the full year ending 30 September 2022, revenue
(reported in USD) is expected to be 10% above current market expectations,
with EBITDA, EBIT and adjusted Profit Before Tax* being 15% - 25% ahead of
current market expectations.

 

The half year period ended 31 March 2022 saw macroeconomic fundamentals
stabilise. The exchange rate remained relatively stable and inflation steadily
reduced. The delayed payment of non-interest-bearing government domestic
arrears and a tight monetary policy resulted in constrained consumer spending,
thereby impacting the Retail and Cold Chain Food business. Despite these
headwinds, the Group is expected to post results ahead of market expectations,
driven by a strong focus on cost control and favourable commodity pricing,
particularly from higher soya bean prices from which the Cropping division is
benefitting from.

 

In addition, a renewed focus in the financial year on price moderation,
innovation, channel development and a sales execution strategy is expected to
stimulate volume performance and, therefore, profitability during the second
half of the financial year. Full year financial performance is also expected
to benefit from the diversified portfolio of businesses in which we operate.
Notwithstanding our expectations, the Russia - Ukraine conflict and its impact
on input raw material costs remain of concern.

 

The Group's net debt** position as at 31 March 2022 was circa USD33million (31
March 2021: USD45million, 30 September 2021: USD42.7million).

 

The Group expects its results for the six-month period ended 31 March 2022 to
be released by the end of June 2022. Shareholders are advised that the
information contained in this Trading Statement has not been reviewed nor
reported on by the external auditors.

 

*Adjusted Profit Before Tax (PBT) is defined as being adjusted for any
unrealised foreign exchange gains or losses and any losses or gains made from
asset disposals.

**Net debt is defined as cash and cash equivalents less bank loans and asset
financing and excludes IFRS16 right of use lease liabilities.

 

For further information, please contact:

 

 Zambeef Products plc                                     Tel: +260 (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: +260 (0) 761 002 002
 Mataka Nkhoma

About Zambeef Products Plc

Zambeef Products plc is the largest integrated cold chain food products and
agribusiness company in Zambia and one of the largest in the region, involved
in the primary production, processing, distribution and retailing of beef,
chicken, pork, milk, eggs, dairy products, fish, flour and stockfeed,
throughout Zambia and the surrounding region, as well as Nigeria and Ghana.

It has 236 retail outlets throughout Zambia and West Africa.

The Company is one of the largest suppliers of beef in Zambia. Five beef
abattoirs and three feedlots are located throughout Zambia, with a capacity to
slaughter 230,000 cattle a year. It is also one of the largest chicken 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.

www.zambeefplc.com

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

-Ends-

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