Zambeef Products PLC has released its financial results for the half-year period ended 31 March 2024. The company operated in an unstable macroeconomic environment characterized by elevated inflation and exchange rate volatility. Despite these challenges, the Group achieved volume and revenue growth in most divisions, driven by effective revenue management and operational execution. The Group showcased significant profitability growth, demonstrating agility and adaptability in navigating the evolving market and economic conditions.
Looking ahead, the company anticipates a stabilization in the economic environment following the recent understanding reached by the government with international bondholders regarding debt restructuring. The Group is well-positioned to capitalize on the opportunities arising from a positive economic outlook, strategically investing for the future in anticipation of an upturn in consumer spending.
Key financial highlights include a revenue of ZMW 3.4 billion (USD 144.1 million) and a gross profit of ZMW 1.1 billion (USD 47.1 million), representing a year-on-year increase in kwacha terms. The Group delivered an operating profit of ZMW 193.1 million (USD 8.2 million), marking a significant increase compared to the prior year. The Board expectations for trading performance reported in kwacha for the full year to 30 September 2024 remain unchanged.
The company's strategic focus remains on optimizing existing asset utilization and maximizing returns. Zambeef is committed to focusing on core businesses, investing in key strategic assets, and divesting non-core assets to increase cash generation and profitability. The $100 million medium-term expansion plans are proceeding as scheduled, with continued dedication to enhancing capacity and efficiency in Cropping, Milling, Stockfeed, Dairy, and Poultry.
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 throughout Zambia, West Africa, Nigeria, and Ghana. The company has 236 retail outlets throughout Zambia and West Africa and is one of the largest suppliers of beef in Zambia, with five beef abattoirs and three feedlots located throughout the country.
The Interim Report for the half-year ended 31 March 2024 will be available on the Group's website. For further information, visit www.zambeefplc.com or contact the provided individuals.