REG - Zambeef Products PLC - Trading Statement

Zambeef ProductsAnnouncement

17/06/2024 07:30

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RNS Number : 5947S  Zambeef Products PLC  17 June 2024

 

ZAMBEEF PRODUCTS PLC

[Incorporated in the Republic of Zambia] Company registration number: 31824
Share Code: ZAMBEEF

ISIN: ZM0000000201

 

 

In accordance with the Lusaka Securities Exchange ("LuSE") Listings
Requirements, the Board of Directors of Zambeef Products Plc (the "Company" or
the "Group") hereby advises the shareholders of the Company that the Total
Basic Earnings per Share for the financial half year ended 31 March 2024 is
expected to be 233% and 143% (in Zambian Kwacha and US Dollar terms
respectively) more than that of the corresponding financial period ended 31
March 2023.

 

The Company reiterates the guidance provided in the Company's previous Trading
Update of 23 April 2024, and therefore there is no change to the most recent
market expectations as updated on 23 April 2024.

 

The Group posted the growth in earnings on the back of resilient demand for
our products, demonstrating positive growth compared to prior year (in ZMW).
The strategic initiatives put in place, including optimized pricing across all
divisions, have helped to mitigate the impact of rising input and overhead
costs.

 

Notwithstanding, the sustained macro-economic pressures the country has
experienced and the worst drought ever recorded, have continued to negatively
impact the business.

Nevertheless, we believe that our vertically integrated model serves as a
strong safeguard against these challenges. By focusing on affordability, we
aim to stimulate sales volumes and mitigate the effects of any adverse market
conditions.

We anticipate that Zambia's macroeconomic environment will stabilise in the
medium term, bolstered by enhanced investor confidence following the
successful resolution with the country's international bondholders regarding
debt restructuring.

 

 

For further information, please visit www.zambeefplc.com
(http://www.zambeefplc.com/) or contact:

 

 Zambeef Products plc                                          Tel: +260 (0) 211 369003
 Faith Mukutu, Chief Executive Office
 M'boo Mumba, Chief Financial Officer
 Cavendish Capital Markets Ltd (Nominated Adviser and Broker)  Tel: +44 (0) 20 7220 0500
 Ed Frisby/Abigail Kelly (Corporate Finance)
 Tim Redfern (ECM)
 Autus Securities Limited (Sponsoring Broker)                  Tel: +260 (0) 761 002 002
 Mataka Nkhoma (Sponsoring Broker)
 By order of the Board Mwansa Mutimushi Company Secretary

Notes to Editors

 

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

 

It has 236 retail outlets throughout Zambia and West Africa.

 

The Company is one of the largest suppliers of beef in Zambia. Five beef
abattoirs and three feedlots are located throughout Zambia, with a capacity to
slaughter 230,000 cattle a year. It is also one of the largest chicken
producers in Zambia, with a capacity of 8.8m broilers and 25.4 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 it's
dairy has a capacity of 120,000 litres per day.

 

The Group is also one of the largest cereal row cropping operations in Zambia,
with approximately 7,265 hectares of row crops under irrigation, which are
planted twice a year, and a further 8,000 hectares of rainfed/dry-land crops
available for planting each year.

 

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