RNS Number : 6459A

Zambeef Products PLC

03 June 2021

Zambeef Products Plc

("Zambeef" or the "Group")

Trading Statement

Zambeef (AIM: ZAM, LuSE: ZAMBF), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana stated on 6 May 2021, that the Group was pleased to announce that for the year ending 30 September 2021, revenue (reported in USD) is expected to be inline with current market expectations, and EBITDA, EBIT and adjusted Profit Before Tax* are now expected to end 20% - 30% ahead of current market expectations (all reported in USD). The Group is pleased to confirm this remains the case.

In accordance with the Lusaka Securities Exchange ("LuSE") Listings Requirements, the Board of Directors of Zambeef Products plc hereby advises the Shareholders of the Group that the Earnings per Share (EPS) for the half-year period ended 31 March 2021 is expected to be 3290% higher in Kwacha (2167% higher in USD) than that for the half-year period ended 31 March 2020.

The increase in earnings is predominantly due to the strong start that the Company had to the financial year, delivering results of pre-pandemic levels. The cost containment embarked on by management also continues to yield significant savings and contributed positively to the earnings. Improvements in the load shedding situation, following the good regional rains, resulted in reduced generator fuel expenditure and improved production efficiencies.

Notwithstanding, the half year period continued to present challenges in the operating environment, resulting from the Covid-19 pandemic and the previous 2020 economic uncertainties, despite greater stability compared to the second half of the 2020 financial year. The rising inflation put pressure on consumer disposable incomes and reduced the share of wallet going towards food spend. Supply constraints on some of Zambeef's product lines further put pressure on cost of inputs. Despite the challenges, demand for products, particular poultry products, remained strong allowing the Company to remain inline with revenue expectations.

Shareholders are advised that the information contained in this Trading Statement has not been reviewed nor reported on by the external auditors of the Group.

The Group intends to announce its results for the half-year period ended 31 March 2021 in June 2021. The results are expected to report revenue of ZMW 2,150,473,000 (USD 102,501,000) and a reported Profit After Tax for the period of ZMW 53,934,000 (USD 2,570,000). Accordingly, Shareholders are advised to exercise caution when dealing with the Company's securities until the publication of results.

*adjusted Profit Before Tax (PBT) is defined as being adjusted for any unrealised foreign exchange gains or losses and any losses or gains made from asset disposals.

Lusaka, Zambia - 02/06/2021

 For further information, please contact: 
 Zambeef Products plc           Tel: +260 (0) 211 369003 
 Walter Roodt 
  Faith Mukutu 
   finnCap Limited (Nominated Adviser and Broker) Tel: +44 (0) 
   20 7220 0500 
   Ed Frisby/Kate Bannatyne/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 stock feed, 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 22.4m 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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(END) Dow Jones Newswires

June 03, 2021 02:00 ET (06:00 GMT)

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