Zambeef Products PLC Trading Statement (6195G)
November 26 2020 - 4:00AM
UK Regulatory
TIDMZAM
RNS Number : 6195G
Zambeef Products PLC
26 November 2020
("Zambeef" or the "Group")
[Incorporated in the Republic of Zambia]
Company registration number 2557
Share Code: ZAMBEEF
ISIN: ZM0000000201
TRADING STATEMENT
As stated on 28 October 2020, the Group was pleased to announce
that it expected to report audited dollar denominated revenue and
EBITDA that is in line with current market expectations, with EBIT
and adjusted Profit Before Tax* that are over 25% ahead of current
market expectations. The Group is pleased to confirm this remains
the case.
However, as explained below, and 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 Total Earnings per Share for the financial
year ended 30th September 2020 is expected to be 665% lower (in
Kwacha terms) than the corresponding period last year for the
Group.
The financial year ended 30th September 2020 was characterised
by a difficult operating environment, particularly in the second
half of the year, due to adverse macro-economic fundamentals
worsened by the Covid-19 pandemic. The significant depreciation of
the Zambian Kwacha against the US Dollar had an adverse impact on
the pricing of imported production inputs and financing costs on
the Group's dollar denominated loans. The combined effects of
depressed customer spending and a weakening currency impacted the
Group results.
Despite the challenges noted above, Zambeef achieved significant
revenue and operating profit (EBIT) growth compared to the previous
financial period. This achievement, in the face of adverse economic
and market conditions, demonstrates the Group's fundamental
strength as a diversified and therefore resilient business.
Unadjusted profit before tax reduced due to increased financing
costs and exchange losses on the Group's dollar denominated debt.
Further, the impairment charge on a deferred tax asset of ZMW
107,785,000, resulted in the Group posting a loss after tax.
The Group intends to announce its results for the financial year
ended 30th September 2020 on 30 November 2020. The results expect
to report revenue of ZMW 3,875,104,000 (US$239,648,000), EBIT of
ZMW 210,531,000 (US$13,020,000) and a Group loss after tax for the
period of ZMW 102,195,000 (US$6,320,000).
*Adjusted Profit Before Tax is defined as excluding any
unrealised foreign exchange gains or losses and any losses or gains
made from asset disposals.
Lusaka, Zambia - 26/11/2020
For further information, please contact:
Zambeef Products plc Tel: +260 (0) 211 369003
Walter Roodt
Faith Mukutu
Strand Hanson Limited Tel: +44 (0) 20 7409 3494
James Spinney
Ritchie Balmer
finnCap Tel: +44 (0) 20 7220 0500
Chris Raggett
Powerscourt Tel: +44 (0)20 7250 1446
Nick Dibden
Bethany Johannsen
Notes to 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,
dairy products, fish, flour and stock feed. The Group also has
large cereal row cropping operations (principally maize, soya beans
and wheat), with approximately 7,973 hectares of row crops under
irrigation, which are planted twice a year and a further 8,776
hectares of rain-fed/dry-land crops available for planting each
year.
Further information can be found on www.zambeefplc.com
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END
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