ZAM Zambeef Products Plc

TIDMZAM

RNS Number : 6968X

Zambeef Products PLC

06 May 2021

06 May 2021

Zambeef Products Plc

("Zambeef" or the "Group")

Half Year 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 ending 30 September 2021, revenue (reported in USD) is expected to be inline with current market expectations. However, EBITDA, EBIT and adjusted Profit Before Tax* are now expected to end 20% - 30% ahead of current market expectations (all reported in USD).

Despite the difficult operating environment resulting from the 2020 economic and Covid-19 related uncertainties, the encouraging first half period performance has been driven by a focus on revenue optimisation. The macroeconomic relative stability witnessed in the first half year period is expected to continue during the second half. The exchange rate has depreciated at a much slower rate while monetary supply in the economy has steadily improved. The good rainfall season and the commissioning of power projects is expected to help alleviate the load shedding situation and positively impact on performance in the second half of the financial year.

The continued focus on improved production efficiencies and overhead cost management across the business has delivered EBITDA for the first half ahead of previous management expectations. Inline revenue expectations reflect no material variances to previous expectations for sales volumes, sales pricing, and currency exchange rates.

The Group's net debt** position as at 31 March 2021 was circa USD45 million (31 March 2020: USD55 million, 30 September 2020: USD39 million).

The Group expects its results for the six month period ended 31 March 2021 to be released by the end of June 2021. Shareholders are advised that the information contained in this Trading Update 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 lease liabilities

For further information, please contact:

 
 Zambeef Products plc                                         Tel: +260 (0) 211 369003 
 Walter Roodt, Chief Executive Office 
 Faith Mukutu, Chief Financial Officer 
 
 finnCap (Nominated Adviser and Broker)                      Tel: +44 (0) 20 7220 0500 
 Ed Frisby/Kate Bannatyne/Tim Harper (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, 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 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.

www.zambeefplc.com

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.

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