REG - Zambeef Products PLC - Trading Statement

Zambeef ProductsAnnouncement

18/06/2025 09:00

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RNS Number : 3582N  Zambeef Products PLC  18 June 2025

 

 

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 half year ended 31 March 2025 is expected to
be 43% lower than that of the corresponding financial period ended 31 March
2024.

 

The Company also reiterates the guidance provided in the Company's previous
Trading Update of 7 May 2025, and therefore there is no change to the most
recent market expectations as updated on 7 May 2025.

 

The decline in Total Basic Earnings per Share for the half is primarily
attributed to a significant increase in financing costs, driven by the debt
levels and an escalation in the monetary policy rate, as well as increased
income tax charges. These factors eclipsed the growth in operating profit
recorded during the period.

 

The growth in operating profit year on year was driven by a materially
improved performance in cropping and the beef space in Q1 and Q2 respectively.

 

While the inflationary environment necessitated price adjustments in most
categories, the Group was unable to fully pass on rising input costs to
consumers, resulting in a margin squeeze and a decline in overall
profitability in some segments.

 

Despite headwinds, the Group continued to execute its strategic priorities
focused on revenue growth, cost efficiency, and volume expansion.

 

Looking ahead to the second half of the financial year, macroeconomic
pressures are expected to persist although inflation is projected to
stabilize.

 

On a more optimistic note, a forecast bumper harvest and improved summer crop
yields will enhance the profitability of the Cropping division, while also
injecting liquidity into the economy through increased earnings by small-scale
farmers. Furthermore, improved rainfall is expected to support better
electricity supply, offering a marginally improved economic outlook compared
to the first half.

 

However, disease outbreaks remain an inherent and ongoing risk within the
Group's livestock divisions, with the potential to materially impact
profitability.

 

The Group expects its results for the half year ended 31 March 2025 to be
released by the end of June 2025. Shareholders are advised that the
information contained in this Trading Statement has not been reviewed or
reported on by the Company's external auditors.

 

 

 

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 Officer
 Patrick Kalifungwa, Chief Financial Officer
 Cavendish Capital Markets Ltd (Nominated Adviser and Broker)  Tel: +44 (0) 20 7220 0500
 Ed Frisby/Isaac Hooper (Corporate Finance)
 Tim Redfern (ECM)
 Autus Securities Limited (Sponsoring Broker)                  Tel: +260 (0) 761 002 002
 Mataka Nkhoma (Sponsoring Broker)

 

 

 

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 250 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 10.6 million broilers and 31.2
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.

 

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