Zambeef Products PLC Year End Trading Update (4567D)
October 28 2020 - 02:30AM
UK Regulatory
TIDMZAM
RNS Number : 4567D
Zambeef Products PLC
28 October 2020
28(th) October, 2020
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 its trading.
The Group announces that, based on work undertaken to date, it
expects to report, for the year ended 30 September 2020, audited
dollar denominated revenue and EBITDA that are in line with current
market expectations, with EBIT and adjusted Profit Before Tax* that
are over 25% ahead of current market expectations.
Despite the uncertainty caused by the COVID-19 pandemic,
consumer demand for Zambeef's products in-country has, to date,
stood up well, and trading performance has been satisfactory.
The Zambian economy has been under significant pressure over the
last six months owing to weak macroeconomic fundamentals
exacerbated by the onset of the COVID-19 pandemic. This has led to
a sharp depreciation of the local currency which has increased
certain input costs into the business, and foreign exchange losses
on our foreign currency-denominated debt. Despite a convincing
performance in the first half of the year, the Group saw a slowdown
in profitability growth in the second half, mainly because of
foreign exchange losses.
The Group has taken appropriate actions to rationalise costs and
preserve balance sheet flexibility. The conclusion of the sale of
Sinazongwe farm in April 2020 was a key milestone with the proceeds
of the sale going towards further debt reduction. The Group's
unaudited net debt position as at 30 September 2020 was US$39
million (2019: US$67 million).
The Group expects its audited results for the year ended 30
September 2020 to be released in early December 2020. Shareholders
are advised to exercise caution when dealing in the securities
until publication of the results.
*Adjusted Profit Before Tax is defined as excluding any
unrealised foreign exchange gains or losses and any losses or gains
made from asset disposals.
For further information, please contact:
Zambeef Products plc Tel: +260 (0) 211 369003
Walter Roodt, Chief Executive Officer
Faith Mukutu, Chief Financial Officer
Strand Hanson Limited (Nominated & Financial Adviser) Tel: +44 (0) 20 7409 3494
James Spinney
Ritchie Balmer
Rob Patrick
Finncap (Broker) Tel: +44 (0) 20 7220 0500
Christopher Raggett
Powerscourt (Financial PR) Tel: +44 (0) 20 7250 1446
Nick Dibden
Bethany Johannsen
Pangaea Securities Tel: +260 (0) 211 220 707
Ceaser Siwale
Wendy Tembo
Notes to the editors
The Zambeef Group is one of the largest integrated cold chain
food producers in Zambia, involved in the production, processing,
distribution and retailing of beef, chicken, pork, milk, eggs,
fish, stock feed, flour and leather. The Group also has large
cereal row cropping operations, principally soya beans and wheat,
with approximately 6099 hectares of row crops under irrigation,
which are planted twice a year and a further 8,735 hectares of
rain-fed crops available for planting each year.
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.
-Ends-
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END
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