Zambeef Products PLC Trading Update (0310G)
November 10 2022 - 9:00AM
UK Regulatory
TIDMZAM
RNS Number : 0310G
Zambeef Products PLC
10 November 2022
Zambeef Products plc
("Zambeef" or the "Group")
Full-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 ended 30 September 2022
(all in USD), revenue, adjusted* EBITDA and reported profit before
tax are expected to be in line with current market expectations.
Adjusted* profit before tax is expected to be c.10% ahead of
current market expectations due to higher than expected profits at
assets held for sale/discontinued operations. A higher taxation
charge is expected to result in reported profit after tax below
current market expectations, but ahead of the prior year.
The year ended 30 September 2022 saw macroeconomic fundamentals
stabilise. The exchange rate remained largely stable and the
inflation rate steadily reduced. However, constrained consumer
spending negatively impacted volume growth in our Retail and Cold
Chain Food Products, particularly in the first half of the
financial year. The period saw an escalation in key input prices
such as fuel, chemicals, and fertiliser which impacted margins. In
addition, the Group saw outbreaks of contagious bovine
pleuropneumonia and African swine fever, both of which were
successfully managed, in line with government guidelines. Despite
these headwinds, performance in Cropping, Milling, and Stockfeed
enabled the Group to achieve adjusted* EBITDA in line with market
expectations owing to high grain prices, market share gains, and
cost containment.
The Russo - Ukraine conflict and its impact on input raw
material costs remain a concern. Coupled with that is the
uncertainty around the global economy, which could have an effect
on the local economy. Group performance is expected to remain
resilient owing to the strength of our brands and the diversified
portfolio of businesses in which we operate.
The Group expects its results for the year ended 30 September
2022 to be released by the end of November 2022. Shareholders are
advised that the information contained in this Trading Update has
not been reviewed nor reported on by its external auditors.
* Adjusted to exclude loss of approximately USD1.4m on disposal
of fixed assets in FY22
For further information, please visit www.zambeefplc.com or
contact:
Zambeef Products plc Tel: +260 (0) 211 369003
Faith Mukutu , Chief Executive Officer
Mulwanda Sichula, Acting Chief Financial Officer
finnCap Ltd (Nominated Adviser and Broker) Tel: +44 (0) 20 7220 0500
Ed Frisby/Abigail Kelly (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, 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 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.
-Ends-
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