Zambeef Products Plc has released its full-year trading statement for the financial year ended September 30, 2023. The company expects its Total Basic Earnings per Share to be 306% higher in Kwacha terms and 272% higher in US Dollar terms compared to the previous financial year. This is in line with the guidance provided in the company's previous trading update, which stated that revenue, gross profit, and adjusted EBITDA are expected to be between 5-15% higher than market expectations.
The company attributes its strong performance to increasing demand for its products, supported by a price moderation approach and volume growth across most product categories. However, lower than expected selling prices and higher input costs, including fuel and electricity, put pressure on gross margins, which moderated in the second half of the year. The company also highlighted better overall cost control in the second half, contributing to its strong performance.
The exchange rate depreciation was a factor affecting the company's financials, with the exchange rate starting the financial year at K15.9/USD and ending at K21.31/USD. The company expects to release its full-year results on December 6, 2023. Shareholders are advised to exercise caution when dealing in the company's securities until the publication of results.
Zambeef Products Plc is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the region. It is involved in the primary production, processing, distribution, and retailing of various food products, including beef, chicken, pork, milk, dairy products, fish, flour, and stockfeed. The company operates 269 retail outlets throughout Zambia and West Africa and has a significant presence in Nigeria and Ghana. It is one of the largest suppliers of beef, chicken, and pork in Zambia and has a substantial cereal row cropping operation.