TIDMZAM
RNS Number : 1282P
Zambeef Products PLC
16 June 2022
Zambeef Products plc
("Zambeef", the "Company" or the "Group")
USD100m Investment Strategy
ZAMBEEF IS EXPANDING
Zambeef (AIM: ZAM), the fully integrated cold chain foods and
retail business with operations in Zambia, Nigeria and Ghana, is
pleased to announce that the Board has agreed on a USD100m
expansion strategy across its core operating divisions over the
next three to five years. Funding is expected to come from cashflow
generated from operations, subject to future financial performance
over the investment period, together with new debt facilities to be
agreed in due course.
This investment strategy is expected to increase Zambeef's
various value chain capacities, and deliver developmental impact to
the Zambian economy through job creation, increased tax revenue and
supporting ancillary businesses such as small-scale farmers and
small to medium-sized businesses.
The strategy is expected to double the Zambeef Mpongwe Farm row
cropping capacity, and also to deliver significantly improved
production efficiency and capacity through the downstream food
value chains. This investment is proof of the Company's commitment
and belief in the country's ambition of becoming the regional food
basket. The investment strategy could not have come at a better
time, as the world is grappling with significant food price
inflation and the risk of an imminent food crisis. The first crop
from the expanded cropping operations is expected to be planted in
the winter of 2023 with capacity upgrades to milling and processing
facilities being run in parallel.
This announced investment will also see the strengthening of the
Company's environmental and sustainability agenda through upgrading
and optimisation of existing facilities. This will see the
improvement in the Company's carbon footprint and livestock health
and welfare.
First investment under the new strategy is intended to commence
imminently, with up to USD10m of spending in the remainder of the
current financial year to 30 September 2022, funded from FY22
cashflow.
The Chairman of the Board, Mr Michael Mundashi SC, commented: "I
am excited to be announcing an investment strategy of this
magnitude, doubling the cropping capacity at a time when Zambia,
Africa and the world need investments of this nature. The intended
investment over the coming years entrenches our position as the
number one vertically integrated cold chain food products and
agribusiness company in Zambia and the region."
"The last two decades have seen the Group significantly grow in
the scale of our operations and I am excited at the next phase of
growth. The management team is elated, and I am confident in their
capacity to deliver the projects quickly and effectively."
At this time there is no certainty in relation to the
availability of debt funding for this investment strategy, and the
Company will make further announcements in relation to funding and
execution of the investment strategy in due course.
For further information, please visit www.zambeefplc.com or
contact:
Zambeef Products plc Tel: +260 (0) 211 369003
Walter Roodt, Chief Executive Office
Faith Mukutu, Chief Financial Officer
finnCap (Nominated Adviser and Broker) Tel: +44 (0) 20 7220 0500
Ed Frisby/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.
More information is available at 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.
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END
MSCMZGMVRVRGZZG
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June 16, 2022 04:30 ET (08:30 GMT)
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