TIDMZAM
RNS Number : 0236W
Zambeef Products PLC
07 December 2023
07 December 2023
Zambeef Products plc
("Zambeef" or the "Group")
Full-year results for the year ended 30 September 2023
Zambeef (AIM: ZAM), the fully integrated cold chain foods and
retail business with operations in Zambia, Nigeria and Ghana, today
announces its audited results for the year ended 30 September
2023.
Financial Highlights
Figures in 000's 2023 2022 % 2023 2022 %
ZMW ZMW USD USD
------------ ------------ ---------- ----------
Revenue 6,046,157 5,394,761 12% 331,478 314,014 6%
Change in fair value
of biological assets 643,198 349,462 84% 35,263 18,567 90%
Cost of sales (4,846,092) (4,111,037) 18% (265,685) (237,518) 12%
Gross profit 1,843,263 1,633,186 13% 101,056 95,063 6%
Administrative expenses (1,336,488) (1,236,762) 8% (73,272) (71,989) 2%
Distribution Expenses (96,287) (65,596) 47% (5,279) (3,818) 38%
Net impairment losses
on financial assets (2,713) (17,869) -85% (149) (1,040) -86%
Impairment of goodwill - (141,786) - - (8,253) -
Other (expenses)/
income (46,419) 2,491 -1963% (2,545) 145 -1855%
Operating profit 361,357 173,664 108% 19,811 10,108 96%
Share of loss equity
accounted investment (2,595) (3,503) -26% (142) (204) -30%
Finance costs (155,088) (118,538) 31% (8,503) (6,900) 23%
Finance income - 3,541 -100% - 206 -100%
Profit before taxation 203,673 55,164 269% 11,166 3,210 248%
Taxation charge (72,851) (63,283) 15% (3,994) (3,684) 8%
Group income for
the year from continuing
operations 130,822 (8,119) 1711% 7,172 (474) 1613%
(Loss)/Profit from
asset held for sale
after tax (10,604) 39,697 -127% (581) 2,311 -125%
Group income for
the period 120,218 31,578 281% 6,591 1,837 259%
EBITDA 554,662 514,791 8% 30,409 29,965 1%
Gross Profit Margin 30.5% 30.3% 30.5% 30.3%
EBITDA Margin 9.2% 9.5% 9.2% 9.5%
Debt/Equity (Gearing) 30.2% 20.2% 30.2% 20.2%
Debt-To-EBITDA 2.54 1.45 76% 2.21 1.57 40%
------------ ------------ ------- ---------- ---------- -------
PERFORMANCE OVERVIEW
The Zambian economy grappled with significant challenges,
creating a difficult operational and economic environment. Longer
than planned sovereign debt restructuring, subdued mining
production of copper, and the impact of climate change; affecting
crop yields and rainfall patterns, were primary drivers of this
adversity. High energy prices and currency depreciation further
impacted and worsened the operating conditions.
The local currency experienced notable volatility against the US
Dollar, with fluctuations of up to 35%. This fluctuation was
primarily driven by heightened demand for the USD, uncertainties
surrounding debt restructuring, and a sustained increase in global
interest rates, which affected offshore investor participation in
local bond auctions. The ZMW/USD exchange rate commenced at K15.9
and concluded at K21.31, representing a 35% surge. Inflation, a
critical economic indicator, concluded the financial year at 12%,
as opposed to the previous year's 9.9%. This was attributed to the
depreciation of the currency, along with escalating food and energy
prices, despite the persistent implementation of a stringent
monetary policy by the central bank.
However, despite a tough operating environment, demand for the
Group's products grew, bolstered by a customer focused approach to
pricing. The Group's management team, through a concerted effort,
prioritized both revenue maximisation, volume growth and cost
management, thereby, positioning the Group on the path to actualise
its strategic goals.
The Group's performance underscores its resilience within an
ever-evolving market and highlights the robustness of the
vertically integrated business model, the cornerstone in creating
enduring value for its shareholders.
KEY FINANCIAL HIGHLIGHTS
The Group achieved a revenue of ZMW 6.0 billion (USD 331.5
million), along with a gross profit of ZMW 1.8 billion (USD 101.0
million). This represents a year-on-year increase of 12.1% and
12.9% in kwacha terms, and 5.6% and 6.3% in US dollar terms,
respectively. The Group's performance was achieved on the back of
strong volumes performance in Stock feed and Cold Chain Food
Products.
Finance costs increased by 31% which can be attributed to the
extended utilisation of the overdraft and term loan facilities to
supplement business growth and financing escalating working capital
requirements.
Additionally, the Group delivered an operating profit of ZMW
361.4 million (USD 19.8 million), a significant increase of 108.1%
in kwacha terms (96.0% in US dollar terms) compared to the prior
year's ZMW 173.7 million (USD 10.1 million). Although prior year
was impacted by a one off impairment cost of ZMW 141.8 million,
this growth underscores the effectiveness of the Group's commercial
strategy and the successful execution of the key cropping
project.
The Group ultimately recorded a profit of ZMW120.2 million (USD
6.6 million) for 2023 compared to ZMW31.6 million (USD 1.8 million)
of value generated in the previous corresponding period.
The bottom line profitability was mainly driven by increased
volumes and margins in the Stock feed and Cold Chain Food products
segments.
Management continued to optimize top-line growth through
effective revenue management while upholding stringent cost control
measures, positioning the Group on the trajectory to actualize its
short to medium-term strategy.
The Group remains dedicated to fortifying its brand equity and
providing customers with high quality products. With its
diversified and vertically integrated business model, robust
brands, and effective management, the Group is well-equipped to
seize future opportunities and navigate potential threats.
Commenting on these results, Chairman Michael Mundashi said:
"Despite a tough operating environment, demand for our products
grew, bolstered by a customer focused approach to pricing. Our
management team, through a concerted effort, prioritized both
revenue maximisation, volume growth and cost management, thereby,
positioning the Group on the path to actualise its strategic
goals."
"The Group's performance underscores our resilience within an
ever-evolving market and highlights the robustness of our
vertically integrated business model, the cornerstone in creating
enduring value for our esteemed shareholders."
"The enduring stability of the economy hinges on the successful
resolution of the government's debt restructuring negotiations. We
foresee a positive trajectory for copper prices, a vital
contributor to our foreign exchange earnings, fuelled by a rising
global demand, notably from China and the burgeoning electric
vehicle market. The recently unveiled 2024 budget has instilled
optimism, as it signals an increase in government expenditure,
anticipated to infuse much-needed liquidity into the economy. This,
in turn, is expected to bolster consumer spending and subsequently
drive economic growth."
"Zambeef is strategically positioned to seize the forthcoming
opportunities and demonstrates adaptability in the face of an
otherwise challenging operating environment. This resilience and
strategic foresight underscore our commitment to navigating through
complexities and thriving in the ever-evolving economic
landscape."
Copies of Zambeef's Annual Report and Accounts for the year
ended 30 September 2023 and Notice of AGM will shortly be sent to
shareholders and made available on the Group's website and a
further announcement will be made at this time.
For further information, please visit www.zambeefplc.com
or contact:
Zambeef Products plc Tel: +260 (0) 211
369003
Faith Mukutu, Chief Executive Officer
M'boo Mumba, Chief Financial Officer
Cavendish Capital Markets Ltd (Nominated Tel: +44 (0) 20 7220
Adviser and Broker) 0500
Ed Frisby/Abigail Kelly (Corporate Finance)
Tim Redfern (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, dairy
products, fish, flour and stockfeed, throughout Zambia and the
surrounding region, as well as Nigeria and Ghana.
It has 269 retail outlets throughout Zambia and West Africa.
The Company is one of the largest suppliers of beef in Zambia.
Five beef abattoirs and five 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 9.4m broilers and 25 million-day-old chicks a year. It
is one of the largest pig abattoirs and pork processing plants in
Zambia, with a capacity to slaughter 102,000 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 7,924 hectares of rainfed/dry-land crops available for
planting each year.
CHAIRMAN'S REVIEW
Dear Shareholder,
Over the past financial year, we navigated an extremely
challenging operational landscape. The primary drivers midst the
ongoing economic headwinds in Zambia were other factors such as the
longer-than-planned foreign debt restructuring, subdued copper
mining activities, and the impact of climate change affecting crop
yields and rainfall patterns.
At the back of these adversities, the 2023 Government GDP growth
projection of 4.2% was revised downwards to 2.7%. Consequently, the
country saw a tightened monetary policy coupled with food and
energy inflation which led to a reduced liquidity situation and
limited consumer expenditure. The depreciation of the Kwacha
against major foreign currencies led to escalated costs in critical
inputs such as fuel and agricultural inputs, further putting
pressure on margins.
Despite the tough operating environment, our management team
remained focused on our strategy and through a concerted effort,
prioritising revenue maximisation, volume growth and cost
management, which positioned the group for the commendable results
achieved.
The Group's performance underscores our resilience within an
ever-evolving market and highlights the robustness of our
vertically integrated business model, the cornerstone in creating
enduring value for our esteemed shareholders.
Strategy
The Board maintains its unwavering commitment to realizing the
Group's strategic objectives, even in the face of seasonal market
dynamics and economic fluctuations. The five-year strategy focuses
on:
-- Strengthening our core business through targeted investments
and expanding market share.
-- Crafting a tailored human capital strategy to meet the
organizational needs.
-- Enhancing strategic partnerships to bolster our competitive
edge and market position.
-- Divestiture of non-core assets to allocate resources
effectively.
The three to five-year US$100 million expansion program,
announced last year, is poised to bolster various value chain
capacities within the Group. This initiative is anticipated to have
a transformative impact on the Zambian economy, fostering job
creation, augmenting tax revenues, and providing essential support
to ancillary enterprises, including small-scale farmers and
medium-sized businesses. The expansion of the Mpongwe Farm row
cropping capacity is advancing, with the inaugural 7,168 metric
tonnes of wheat crop harvested in the financial year under review.
This milestone is expected to bring about a substantial enhancement
in production efficiency and capacity throughout the downstream
food value chains. Concurrently, upgrades to the milling and
processing facilities are also making significant progress.
During the year, we had the honour of hosting His Excellency
Hakainde Hichilema, the President of the Republic of Zambia, who
inspected some of our strategic projects in Mpongwe. These include
the Cropping expansion, Hatchery expansion, and the new wheat mill.
This event also marked the official launch of the 2023 Wheat
harvest season.
The Economic Environment
Throughout the fiscal year, the local currency experienced
notable volatility against the US Dollar, with fluctuations of up
to 35%. This fluctuation was primarily driven by heightened demand
for the USD, uncertainties surrounding debt restructuring, and a
sustained increase in global interest rates, which affected
offshore investor participation in local bond auctions. The ZMW/USD
exchange rate commenced at K15.9 and concluded at K21.31,
representing a 35% surge. Inflation, a critical economic indicator,
concluded the financial year at 12%, as opposed to the previous
year's 9.9%. This was attributed to the depreciation of the
currency, along with escalating food and energy prices, despite the
persistent implementation of a stringent monetary policy by the
central bank.
Noteworthy was the resurgence in copper prices, which peaked at
USD 8,230/MT, fuelled by China's copper consumption. However,
subdued production levels continued to impede the realization of
full value, consequently impacting the economy's foreign exchange
earnings potential. These dynamics underscore the delicate balance
between global market forces and domestic production
capacities.
Outlook
The enduring stability of the economy hinges on the successful
resolution of the government's debt restructuring negotiations. We
foresee a positive trajectory for copper prices, a vital
contributor to our foreign exchange earnings, fuelled by rising
global demand, notably from China and the burgeoning electric
vehicle market. The recently unveiled 2024 National budget has
instilled optimism, as it signals an increase in government
expenditure, anticipated to infuse much-needed liquidity into the
economy. We are optimistic, that this will bolster consumer
spending and subsequently drive economic growth.
Zambeef is strategically positioned to seize the opportunities
ahead and demonstrates adaptability in the face of an otherwise
challenging operating environment. This resilience and strategic
foresight underscore our commitment to navigating through
complexities and thriving in the ever-evolving economic
landscape.
16 September 2024 will be the eighth anniversary of British
International Investment plc's (BII) investment in the Company.
After this date BII's conversion rights on their convertible
redeemable preference shareholding ("Preference Shares") will
increase materially, from currently one-for-one new ordinary share,
to one for 3.0833 (recurring) new ordinary shares. BII is the
Company's largest ordinary shareholder and also holds all
Preference Shares. The Company has the right to redeem all or part
of the Preference Shares at the redemption price, which would give
BII a 12% compounded annual return on their investment, subject to
a minimum of USD 0.77 per Preference Share (less dividends
received). However, the likelihood of such a repayment by the
Company in this new financial year, or in the medium term, is
currently considered by the Board to be extremely unlikely.
Acknowledgement
Since my last report, we welcomed two additional Non-Executive
Directors of the Board; Mr. Muyangwa Muyangwa and Dr. John Clifford
Rich. Their respective appointments and subsequent announcements
were on 21 April and 21 June 2023 respectively. We are confident
that their extensive experience will be instrumental in driving our
business forward, in line with our strategic objectives.
I am indebted to my fellow Board members for their devoted
leadership throughout the year and I convey my sincere appreciation
to our diligent management and staff for yet another year of
commendable performance. The steadfast tenacity and fortitude shown
in the face of challenges is a testament to the team. I take great
pride in our collective achievements thus far and I am eager for
the promising opportunities that will shape our future progress.
Together, we will continue to build upon this foundation of
success.
Michael Mundashi
Chairman
Chief Executive Officer's Report
Overview
During the financial year ending on September 30, 2023, Zambeef
exhibited agility resulting in strong financial performance.
Management continued to optimise top-line growth through effective
revenue management while upholding stringent cost control measures,
positioning the Group on the trajectory to actualize its short to
medium-term strategy.
Our achievements stand as a testament to the talent within our
organization and the enduring partnerships we've established with
customers, suppliers, and the communities in which we operate.
Reflecting on the past year, it is evident that our unwavering
dedication to commercial objectives, along with our commitment to
operational excellence and cost optimization, has not only spurred
us forward but also solidified our position in some of the sectors
in which we operate. This report offers a comprehensive overview of
our performance, spotlighting significant milestones, financial
performance, and ongoing initiatives aimed at sustaining growth and
creating long-term value.
Financial Performance
Despite a challenging trading environment marked by constrained
consumer spending and a tight monetary policy, the Group achieved
strong results for the year ending September 30, 2023. Escalating
costs of vital inputs and commodities, including fuel, electricity,
agricultural supplies, and grain, led to increased production costs
for our livestock and cropping divisions. Nevertheless, the Group
demonstrated volume growth in most divisions, capitalizing on the
momentum from the latter half of 2022. This was facilitated by a
meticulous approach to revenue management and effective sales and
operational execution.
The Group achieved a revenue of ZMW 6.0 billion (USD 331.5
million), along with a gross profit of ZMW 1.8 billion (USD 101.1
million). This represents a year-on-year increase of 12.1% and
12.9% in kwacha terms, and 5.6% and 6.3% in US dollar terms,
respectively.
Additionally, the Group delivered an operating profit of ZMW
361.4 million (USD 19.8 million), a significant increase of 108.1%
in kwacha terms (96.0% in US dollar terms) compared to the prior
year's ZMW 173.7 million (USD 10.1 million). Although the prior
year was impacted by a one-off impairment cost of ZMW 141.8
million, this growth underscores the effectiveness of our
commercial strategy and the successful execution of the cropping
expansion project.
The Group remains dedicated to fortifying its brand equity and
providing customers with high-quality products. With our
diversified and vertically integrated business model, robust
brands, and effective management, we are well-equipped to seize
future opportunities and navigate potential threats.
Strategic Focus
Our strategic focus remains to optimise our existing asset
utilisation and maximise returns. We remain committed to our
strategy of focussing on our core businesses, in which we strive to
be the best in class. The continued investment in key strategic
assets and divestiture of non-core assets will enable us to
increase cash generation and profitability and therefore continue
to deliver shareholder value. I am pleased to report that our $100
million medium-term expansion plans are proceeding as scheduled. We
have maintained our dedication to enhancing capacity and efficiency
in Cropping, Milling, Stockfeed, Dairy, and Poultry.
Our strategic focus in optimising costs and rationalising the
Group's operations continued throughout the financial year.
Management's proposal to restructure the Group was approved and an
announcement was made in September 2023. The Company is expected to
benefit from the restructuring as it will eliminate unnecessary
complexities and duplications of its business processes across the
six different entities, which have the same key decision-makers,
processes, ownership and senior Executive team. I am particularly
gratified that all the Executive positions have been filled,
positioning the Group for navigating forthcoming business growth
with a leadership team with the necessary ability to drive the
Group's future success.
Outlook
Looking ahead, our strong brand presence will continue to be a
cornerstone in maintaining customer loyalty. Additionally, our
vertically integrated business model places us in a favourable
position, ensuring a reliable supply chain and a market for our
products. We anticipate a stabilisation in the economic environment
once the process of debt restructuring concludes and there is an
upswing in Copper production. With these factors in mind, the Group
is poised to leverage the opportunities arising from a positive
economic outlook, strategically investing for the future in
anticipation of an upturn in consumer spending.
Our ongoing commitment to consolidating our balance sheet
through the disposal of low returning assets, optimising existing
assets and the expansion of capacity remains a central focus. These
measures are geared towards enhancing shareholder value, a goal we
remain dedicated to achieving. By fortifying our financial
foundation and strengthening our operational capabilities, we are
poised for sustained growth and prosperity in the years ahead.
Divisional Performance
Table 1 (ZMW) and Table 2 (USD) below provide a summary of the
consolidated performance of the key business divisions reported at
an operating profit level.
Table 1: Divisional financial summary in ZMW'000
Table 2: Divisional financial summary in USD'000
Retailing & Cold Chain Food Products
The year was marked with good sales volumes across all protein
categories, despite operating within a competitive and financially
constrained environment. Our ability to retain and increase volumes
was driven by meticulous sales execution and price optimization,
all of which had a direct impact on the overall revenue growth.
However, it's worth noting that despite achieving double-digit
volume growth, the beef division reported a decline in gross
profit, primarily attributed to expenses resulting from the
outbreak of Contagious Bovine Pleuropneumonia (CBPP), a disease
affecting cattle, whose effect continued from the previous
financial year into the current one. In addition, rising input
costs, specifically the high price of buying animals and increased
feeding costs, put pressure on profitability.
In the first half of the year, there was a sluggish demand for
chicken, which picked up in the latter half. This was largely due
to other protein categories becoming relatively more expensive.
This shift in consumer preference helped bolster sales of both feed
and Day-old chicks, contributing to the division's overall
performance and demonstrating the dynamic consumer behaviour and
the importance of adapting to market trends.
The Dairy segment's revenue realisation was on the back of
strong volume growth and is well positioned to capitalise on
further growth opportunities in the coming periods.
Despite the challenges, the division experienced a moderate
growth of 1.4% growth in gross profit in USD terms and 7.7% in
Kwacha terms over the prior year. This growth can be attributed to
effective pricing strategies, operational efficiency improvements,
and a favourable product mix.
The Retailing and Cold Chain Food Production segment is well
poised to build upon these achievements and continue its trajectory
of growth and profitability in the upcoming fiscal year. Through
strategic initiatives and a customer-centric approach, we aim to
further strengthen our position in the market.
Cropping and Milling
The Cropping segment delivered a notable revenue performance,
achieving a growth of 17.7% in Kwacha (10.9% in USD) compared to
the previous year. However, operating profit ended with a
significant reduction, primarily attributed to lower prices and
yields in the summer soya bean crop which was further compounded by
the escalating costs of critical inputs such as fertilizer and
fuel.
In the Stock Feed segment, there was an increase in demand
during the latter half of the year which translated into revenue
and volume maximization, ultimately contributing to profitability.
The positive performance underscores our capability to adapt to
changing market dynamics and meet customer needs effectively.
The Flour segment experienced double-digit growth in volumes
attributed to the implementation of good sales strategies and the
introduction of new product lines. This performance highlights our
commitment to innovation and our ability to execute sales
initiatives effectively, thereby driving growth in this
segment.
Acknowledgements
I would like to extend my gratitude to our Board of Directors
for their guidance and support. I am also indebted, to all our
dedicated staff and partners, for their invaluable contributions to
the ongoing success of the Group.
I eagerly anticipate what we will achieve in the coming year as
we continue to implement and execute our growth strategy.
Faith Mukutu
Chief Executive Officer
6 December 2023
Zambeef Products Plc and its Subsidiaries
Statement of profit or loss and other comprehensive income
Notes Group Company
Continuing operations 2023 2022 2023 2022
K'000 K'000 K'000 K'000
Revenue from contracts with
customers 5(ii) 6,046,157 5,394,761 3,384,408 3,361,428
Change in fair value of biological
assets 16 643,197 349,462 568,975 338,052
Cost of sales of goods 7 (4,846,092) (4,111,037) (3,046,883) (2,826,242)
------------ ------------ ------------ ------------
Gross profit 1,843,262 1,633,186 906,500 873,238
Other (expenses)/income 6 (46,419) 2,491 (18,064) 17,325
Net impairment losses on financial
assets 4(b) (2,713) (17,869) (1,768) (7,876)
Impairment of goodwill 13 - (141,786) - (141,786)
Distribution expenses 7 (96,287) (65,596) (1,302) (67,118)
Administrative expenses 7 (1,336,486) (1,236,762) (741,469) (658,635)
------------ ------------ ------------ ------------
Operating profit 361,357 173,664 143,897 15,148
Net Finance costs and income 8 (155,089) (114,997) (123,921) (87,475)
Share of loss from equity
investment 15(ii) (2,595) (3,503) (2,595) (3,503)
------------ ------------ ------------ ------------
Profit/(loss) before income
tax 203,673 55,164 17,381 (75,830)
Income tax expense - continuing
operations 10 (72,851) (63,283) (15,704) (27,799)
------------ ------------ ------------ ------------
Profit/(loss) from continuing
operations 130,822 (8,119) 1,677 (103,629)
(Loss)/profit from discontinued
operations after tax 20(i) (10,604) 39,697 (10,604) 39,697
Profit/(loss) from continued
and discontinued operations 120,218 31,578 (8,927) (63,932)
Profit/(loss) attributable
to:
Owners of Zambeef Products
PLC 118,612 29,152 (8,927) (63,932)
Non-controlling interests 1,606 2,426 - -
------------ ------------ ------------ ------------
120,218 31,578 (8,927) (63,932)
------------ ------------ ------------ ------------
Other comprehensive income:
Items that maybe reclassified
to profit or loss
Translation differences -
foreign operations 22 (40,617) (16,320) - -
Translation differences -
Mpongwe Farms 22 - (10,847) - (10,847)
Items not reclassified to
profit or loss
Revaluation surplus 23 1,003,412 - 977,426 -
Actuarial remeasurement losses 26(i) (768) (3,150) (425) (1,058)
Deferred income tax 25 (98,516) 6,394 (97,751) 3,018
------------ ------------
Other comprehensive income
for the year 863,511 (23,923) 879,250 (8,887)
------------ ------------ ------------ ------------
Total comprehensive income
for the year 983,729 7,655 870,323 (72,819)
============ ============ ============ ============
Statement of profit or loss and other comprehensive income
(continued)
Notes Group Company
2023 2022 2023 2022
K'000 K'000 K'000 K'000
Total comprehensive income
for the year is attributable
to:
Owners of Zambeef Products
Plc 990,425 4,970 870,323 (72,819)
Non-controlling interests (6,696) 2,685 - -
-------- ------- -------- ---------
983,729 7,655 870,323 (72,819)
-------- ------- -------- ---------
Basic earnings per share Ngwee Ngwee Ngwee Ngwee
Continuing operations 30 42.99 (3.51) 0.56 (34.46)
Discontinued operations 30 (3.53) 13.21 (3.53) 13.21
-------- ------- -------- ---------
Total basic earnings per share 39.46 9.70 (2.97) (21.25)
-------- ------- -------- ---------
Diluted earnings per share
Continuing operations 30 32.25 (2.63) 0.42 (25.85)
Discontinued operations 30 (2.65) 9.91 (2.65) 9.91
-------- ------- -------- ---------
Total diluted earnings per
share 29.60 7.28 (2.23) (15.94)
-------- ------- -------- ---------
Consolidated Statement of financial position
30-Sept-23 30-Sept-22
ASSETS Notes K'000 K'000
Non-current assets
Property, plant and equipment 11 4,818,533 3,167,000
Goodwill 13 25,015 25,015
Investment in associate 15 34,370 36,965
Biological assets 16 123,359 86,592
----------- -----------
5,001,277 3,315,572
----------- -----------
Current assets
Biological assets 16 285,039 234,104
Inventories 17 1,656,487 1,441,912
Trade and other receivables 18 332,703 289,300
Cash and cash equivalents 19 271,222 223,972
Assets classified as held for sale 20(iii) 157,640 170,091
Current income tax asset 10 - -
----------- -----------
2,703,091 2,359,379
----------- -----------
Total assets 7,704,368 5,674,951
=========== ===========
EQUITY
Share capital 21 3,006 3,006
Share premium 21 1,125,012 1,125,012
Preference share capital 21 1,000 1,000
Foreign currency translation reserve 22 660,390 692,705
Revaluation reserve 23 1,964,087 1,113,119
Retained earnings 930,262 758,489
----------- -----------
Attributable to owners of parent
entity 4,683,757 3,693,331
Non-controlling interests (NCI) (6,630) 66
----------- -----------
4,677,127 3,693,397
----------- -----------
LIABILITIES
Non-current liabilities
Lease liabilities 12(b) 15,622 12,597
Borrowings 24 687,679 426,222
Deferred income tax 25 302,017 223,217
Defined benefit obligations 26 1,631 3,654
1,006,949 665,690
----------- -----------
Current liabilities
Lease liabilities 12(b) 6,448 5,046
Borrowings 24 972,827 525,325
Trade and other payables 27 834,190 649,573
Contract liabilities 28 164,063 97,400
Current income tax 10 42,764 38,520
----------- -----------
2,020,292 1,315,864
----------- -----------
Total equity and liabilities 7,704,368 5,674,951
=========== ===========
Consolidated statement of changes in equity
Total
Foreign attributable
Preference currency to owners
Share Share share translation Revaluation Retained of parent Non-controlling
Capital premium capital reserve reserve earnings entity interests Total
Year ended 30 K'000 K'000 K'000 K'000 K'000 K'000 K'000 K'000
September
2022
At start of
year 3,006 1,125,012 1,000 720,131 1,160,653 678,559 3,688,361 (2,619) 3,685,742
Profit for the
year - - - - - 29,152 29,152 2,426 31,578
Other
comprehensive
income:
Transfer of
excess
depreciation - - - - (53,928) 53,928 - - -
Actuarial
remeasurement
losses - - - - - (3,150) (3,150) - (3,150)
Deferred
income tax
(Note
25) - - - - 6,394 - 6,394 - 6,394
Translation
differences
(Note 22) - - - (27,426) - - (27,426) 259 (27,167)
-------- ---------- ----------- ------------ ------------ --------- ------------- ---------------- ----------
- - - (27,426) (47,534) 50,778 (24,182) 259 (23,923)
-------- ---------- ----------- ------------ ------------ --------- ------------- ---------------- ----------
Total
comprehensive
income
for the year - - - (27,426) (47,534) 79,930 4,970 2,685 7,655
At end of year 3,006 1,125,012 1,000 692,705 1,113,119 758,489 3,693,331 66 3,693,397
======== ========== =========== ============ ============ ========= ============= ================ ==========
Year ended 30
September
2023
At start of
year 3,006 1,125,012 1,000 692,705 1,113,119 758,489 3,693,331 66 3,693,397
Profit for the
year - - - - - 118,612 118,612 1,606 120,218
Other
comprehensive
income:
Revaluation
surplus - - - - 1,003,412 - 1,003,412 - 1,003,412
Transfer of
excess
depreciation - - - - (53,928) 53,928 - - -
Actuarial
remeasurement
losses - - - - - (768) (768) - (768)
Deferred
income tax
(Note
25) - - - - (98,516) - (98,516) - (98,516)
Translation
differences
(Note 22) - - - (32,315) - - (32,315) (8,302) (40,617)
-------- ---------- ----------- ------------ ------------ --------- ------------- ---------------- ----------
- - - (32,315) 850,968 53,160 871,813 (8,302) 863,511
Total
comprehensive
income
for the year - - - (32,315) 850,968 171,772 990,425 (6,696) 983,729
At year end 3,006 1,125,012 1,000 660,390 1,964,087 930,262 4,683,757 (6,630) 4,677,127
======== ========== =========== ============ ============ ========= ============= ================ ==========
Statement of cash flows
Group Company
2023 2022 2023 2022
Notes K'000 K'000 K'000 K'000
Cash generated from/(used
in) operations 29(i) 316,758 308,323 (29,141) 153,025
Interest paid on borrowings 29(ii) (44,646) (53,473) (44,646) (53,473)
Interest paid on leases 29(ii) (2,676) (1,813) (1,312) (784)
Benefits paid 26(i) (3,422) (9,672) (238) (3,247)
Income tax paid 10 (88,323) (44,877) (34,233) (9,828)
----------
Net cash inflow from operating
activities 177,691 198,488 (109,570) 85,693
---------- ---------- ---------- ----------
Cash flows from investing
activities
Purchase of property, plant
and equipment 11 (817,295) (222,135) (504,998) (109,858)
Proceeds from disposal assets 4,025 2,819 6,165 -
----------
Net cash outflow from investing
activities (813,270) (219,316) (498,833) (109,858)
---------- ---------- ---------- ----------
Cash flows from financing
activities
Proceeds from borrowings 29(ii) 916,396 722,995 916,396 722,995
Principal repayments of borrowings 29(ii) (526,257) (526,205) (526,257) (526,205)
Principal elements of lease
payments 29(ii) (7,319) (14,965) (6,016) (7,322)
----------
Net cash inflow from financing
activities 382,820 181,825 384,123 189,468
---------- ---------- ---------- ----------
Net increase/(decrease) for
the year (252,759) 160,997 (224,280) 165,303
---------- ---------- ---------- ----------
Movement in cash and cash
equivalents
At start of year (127,708) (288,665) (27,876) (193,224)
Net increase /(decrease) (252,759) 160,997 (224,280) 165,303
Exchange differences - (40) - 45
----------
At year end 19 (380,467) (127,708) (252,156) (27,876)
========== ========== ========== ==========
Extracted from the Supplementary Information within the 2023
Annual Report. This information presented in USD does not form part
of the Financial Statements and is therefore unaudited
Statement of profit or loss and other comprehensive income
Group Company
2023 2022 2023 2022
US$'000 US$'000 US$'000 US$'000
Revenue from contracts with
customers 331,478 314,014 185,549 195,659
Change in fair value of biological
assets 35,263 18,567 31,194 17,903
Cost of sales of providing
goods (265,685) (237,518) (167,044) (162,734)
---------- ---------- ---------- ----------
Gross profit 101,056 95,063 49,699 50,828
Other income/(expenses) (2,545) 145 (1,892) 1,008
Net impairment losses on financial
assets (149) (1,040) (97) (458)
Impairment of goodwill - (8,253) - (8,253)
Distribution expenses (5,279) (3,818) (71) (3,907)
Administrative expenses (73,272) (71,989) (40,651) (38,337)
---------- ---------- ---------- ----------
Operating profit 19,811 10,108 6,988 881
Share of loss from equity
investment (142) (204) (142) (204)
Finance income/(expenses) (1,133) 206 (222) 206
Finance costs (7,370) (6,900) (5,670) (5,297)
Profit before income tax 11,166 3,210 954 (4,414)
Income tax expense (3,994) (3,684) (861) (1,618)
---------- ---------- ---------- ----------
(Loss)/profit from continuing
operation 7,172 (474) 93 (6,032)
Profit from asset held for
sale (581) 2,311 (581) 2,311
---------- ---------- ---------- ----------
Profit for the year 6,591 1,837 (488) (3,721)
Profit attributable to:
Owners of Zambeef Products
PLC 6,503 1,696 (488) (3,721)
Non-controlling interests 88 141 - -
---------- ---------- ---------- ----------
6,591 1,837 (488) (3,721)
---------- ---------- ---------- ----------
Other comprehensive income:
Items that maybe reclassified
to profit or loss
Translation losses on foreign
operations (2,227) (946) - -
Translation losses on Mpongwe
Farms - (631) - (631)
Items not reclassified to
profit or loss
Revaluation surplus 55,012 - 53,587 -
Actuarial remeasurement losses (42) (183) (23) (62)
Deferred income tax (5,401) 368 (5,359) 176
---------- ----------
Other comprehensive income
for the year 47,342 (1,392) 48,205 (517)
---------- ---------- ---------- ----------
Total comprehensive income
for the year 53,933 445 47,717 (4,238)
========== ========== ========== ==========
Statement of profit or loss and other comprehensive income
(continued)
Group Company
2023 2022 2023 2022
US$'000 US$'000 US$'000 US$'000
Total comprehensive income
for the period is attributable
to:
Owners of Zambeef Products
Plc 54,300 289 47,717 (4,238)
Non-controlling interests (367) 156 - -
-------- -------- -------- --------
53,933 445 47,717 (4,238)
-------- -------- -------- --------
Basic earnings per share
Continued operations 2.36 (0.19) 0.03 (2.01)
Discontinued operations (0.19) 0.77 (0.19) 0.77
-------- -------- -------- --------
Total basic earnings per share 2.16 0.58 (0.16) (1.24)
-------- -------- -------- --------
Diluted earnings per share
Continued operations 1.77 (0.15) 0.02 (1.50)
Discontinued operations (0.15) 0.58 (0.15) 0.58
-------- -------- -------- --------
Total diluted earnings per
share 1.62 0.43 (0.12) (0.92)
-------- -------- -------- --------
Consolidated statement of financial position
30-Sept-23 30-Sept-22
ASSETS US$'000 US$'000
Non-current assets
Property, plant and equipment 229,236 198,393
Right of use assets - 2,050
Goodwill 1,190 1,583
Investment in associate 1,635 2,340
Biological assets 5,869 5,480
----------- -----------
237,930 209,846
----------- -----------
Current assets
Biological assets 13,560 14,817
Inventories 78,805 91,260
Trade and other receivables 15,828 18,310
Cash and cash equivalents 12,903 14,175
Assets classified as held for
sale 7,500 10,765
Current income tax asset - -
----------- -----------
128,596 149,327
----------- -----------
Total assets 366,526 359,173
=========== ===========
EQUITY
Share capital 449 449
Share premium 185,095 185,095
Preference share capital 100 100
Foreign currency translation
reserve 49,843 42,945
Revaluation reserve 51,360 65,256
Retained earnings (64,023) (60,091)
----------- -----------
Attributable to owners of parent
entity 222,824 233,754
Non-controlling interests (315) 4
----------- -----------
222,509 233,758
----------- -----------
LIBILITIES
Non-current liabilities
Borrowings 32,715 26,976
Lease liabilities 743 797
Deferred income tax 14,368 14,128
Defined benefit obligations 78 231
47,904 42,132
----------- -----------
Current liabilities
Borrowings 46,281 33,248
Lease liabilities 307 319
Trade and other payables 39,686 41,113
Contract liabilities 7,805 6,165
Current income tax 2,034 2,438
----------- -----------
96,113 83,283
----------- -----------
Total equity and liabilities 366,526 359,173
=========== ===========
Statement of cash flows Group Company
2023 2022 2023 2022
$'000 $'000 $'000 $'000
Cash generated from/(used in) operations 17,366 17,947 (1,598) 8,907
Interest paid on borrowings (2,448) (3,113) (2,448) (3,113)
Interest paid on leases (147) (106) (72) (46)
Benefits paid (188) (563) (13) (189)
Income tax paid (4,842) (2,612) (1,877) (572)
----------- ----------- ------------ -----------
Net cash inflow from operating activities 9,742 11,553 (6,007) 4,988
----------- ----------- ------------ -----------
Cash flows from investing activities
Purchase of property, plant and equipment (44,808) (12,930) (27,686) (6,395)
Proceeds from disposal assets 221 164 338 -
----------- ----------- ------------ -----------
Net cash outflow from investing activities (44,587) (12,766) (27,348) (6,395)
----------- ----------- ------------ -----------
Cash flows from financing activities
Proceeds from borrowings 50,241 42,084 50,241 42,084
Principal repayments of borrowings (28,852) (30,629) (28,852) (30,629)
Principal elements of lease payments (401) (871) (330) (426)
----------- ----------- ------------ -----------
Net cash inflow from financing activities 20,988 10,584 21,059 11,028
----------- ----------- ------------ -----------
Net increase/(decrease) for the year (13,857) 9,371 (12,296) 9,622
----------- ----------- ------------ -----------
Movement in cash and cash equivalents
At start of year (8,083) (17,244) (1,764) (11,543)
Net increase /(decrease) (13,857) 9,371 (12,296) 9,622
Exchange differences 3,839 (210) 2,063 157
----------- ----------- ------------ -----------
At year end (18,101) (8,083) (11,997) (1,764)
----------- ----------- ------------ -----------
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"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
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END
FR UPGQPPUPWURM
(END) Dow Jones Newswires
December 07, 2023 04:00 ET (09:00 GMT)
Zambeef Products (AQSE:ZAM.GB)
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