Zambeef Products PLC Year End Trading Update
RNS Number : 8510P
Zambeef Products PLC
21 October 2021
21 October, 2021
Zambeef Products plc
("Zambeef" or the "Group")
Year End Trading Update
Zambeef (AIM: ZAM), the fully integrated cold chain foods and
retail business with operations in Zambia, Nigeria and Ghana, is
pleased to provide the following update on trading.
The Group announces that for the year ended 30 September 2021,
revenue (reported in USD) is expected to be between 10% - 15% ahead
of current market expectations, with EBITDA and EBIT being ahead by
10% - 12%. Adjusted Profit Before Tax* is expected to be 65 - 75%
ahead of current market expectations.
Despite the rising input costs and global food prices, and a
difficult operating environment resulting from the 2020 economic
and Covid-19 related uncertainties, the positive full year
performance has been driven by sustained consumer demand for our
products. The macroeconomic fundamentals remained relatively stable
during the financial year in the context of the previous
comparative year. The local currency depreciated at a much slower
rate in the first half and experienced steep appreciation in the
second half. Increased consumer spending stemming from the Covid-19
economic stimulus package resulted in increased demand for our
products. The good rainfall season helped alleviate load shedding
and therefore positively impacted on the financial performance.
The continued focus on cost management across the business has
maintained profitability with exchange gains and lower interest
costs resulting in a higher Adjusted Profit Before Tax*.
The Group has taken appropriate actions to restructure debt,
with an increased percentage of facilities now denominated in
Kwacha. Net debt** position as at 30 September 2021 is expected to
close at USD42.7 million (2020: USD39 million) and ZMW714.8 million
(2020: ZMW790.1 million) in Kwacha terms. The ZMW/USD exchange rate
for the period closed at ZMW16.74 (2020:ZMW20.14).
The Group expects its audited results for the year ended 30
September 2021 to be released in December 2021. Shareholders are
advised that the information contained in this Trading Statement
has not been reviewed nor reported on by the external auditors.
*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.
**Net debt is defined as cash and cash equivalents less bank
loans and excludes IFRS16 right of use lease liabilities.
For further information, please contact:
Zambeef Products plc Tel: +260 (0) 211
Walter Roodt, Chief Executive Office
Faith Mukutu, Chief Financial Officer
finnCap Limited (Nominated Adviser and Tel: +44 (0) 20 7220
Ed Frisby/Kate Bannatyne/Tim Harper (Corporate
Tim Redfern/Barney Hayward (ECM)
Autus Securities Limited Tel: +260 (0) 761
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
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.
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) Dow Jones Newswires
October 21, 2021 09:00 ET (13:00 GMT)
Zambeef Products (LSE:ZAM)
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