REG - Zambeef Products PLC - Trading Update

Zambeef ProductsAnnouncement

07/05/2025 10:15

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RNS Number : 6745H  Zambeef Products PLC  07 May 2025

 

 

ZAMBEEF PRODUCTS PLC

("Zambeef: of the "Group") [Incorporated in the Republic of Zambia] Company
registration number: 31824 Share Code: ZAMBEEF

ISIN: ZM0000000201

 

 

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

 

The Group now expects full financial year 2025 revenue and gross profit
(reported in USD) to be approximately 10% and 3% below current market
expectations respectively. This is due to both a weaker Zambian Kwacha
expected for the period, and due to softer volume performance, driven by
reduced consumer spending in an inflationary economic environment and the
continued implementation of tight monetary policy by the central bank. As a
result, reported profit before tax (reported in USD) is anticipated to be
around 20% below current market expectations, also reflecting the weaker
ZMW/USD reported earnings effect, revenue reduction and higher-than-expected
financing costs. Despite this reduction against expectations, and a weaker
earnings per share performance in the first half of this financial year
(compared to the corresponding financial period ended 31 March 2024), reported
profit before tax (reported in USD) for the full financial year ending 30
September 2025 is still expected to be ahead of the prior year.

 

For the half year ended 31 March 2025, the Group recorded a softer volume
performance, but with growth achieved in key cold chain product categories.
Overall performance fell short of expectations due to ongoing challenges in
the operational and economic environment. These included tight monetary
conditions aimed at curbing inflation, exchange rate volatility, the effects
of the worst ever drought experienced (resulted in a power deficit and high
commodity prices) and reduced government expenditure - all of which exerted
pressure on disposable incomes.

 

The inflationary climate led to input price increases across the board. The
Group was not able to fully pass on rising input costs to all our customers in
all areas of our business, however, notably our Cropping business has achieved
strong pricing, resulting overall in an increase to expectations for Group
gross margin and EBIT margin for the full current financial year.

 

The current macroeconomic challenges are expected to continue through to the
second half of the financial year. Although inflation is forecast to stabilize
at a single digit, the exchange rate volatility is likely to continue. Despite
the current outlook, we expect to drive strong production yields and continue
to enhance profitability in the cropping space. In addition, improved rainfall
is expected to stabilize electricity supply, which will slightly contribute to
a more favorable economic outlook compared to the first half of the financial
year.

 

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 Update has not been reviewed nor
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                                      Tel: +260 (0) 761 002 002
 Mataka Nkhoma, Sponsoring Broker

 

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 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 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 7,265 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. www.zambeefplc.com (http://www.zambeefplc.com/)

 

 

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