Zambeef Products PLC has announced its financial results for the year ended September 30, 2023. The company faced challenges due to the difficult operational and economic environment in Zambia, including longer than planned sovereign debt restructuring, subdued mining production of copper, and the impact of climate change on crop yields and rainfall patterns. High energy prices and currency depreciation further worsened the operating conditions. Despite these challenges, demand for the company's products grew, supported by a customer-focused approach to pricing. The company's management team prioritized revenue maximization, volume growth, and cost management to achieve its strategic goals.
Looking ahead, Zambeef Products PLC expects a stabilization in the economic environment once the debt restructuring process concludes and there is an upswing in copper production. The company's robust brand presence and vertically integrated business model position it well to leverage opportunities arising from a positive economic outlook. The company remains committed to consolidating its balance sheet through the disposal of low-returning assets and the expansion of capacity to enhance shareholder value.
In terms of financial highlights, Zambeef Products PLC achieved a revenue of ZMW 6.0 billion (USD 331.5 million), representing a year-on-year increase of 12.1% in kwacha terms and 5.6% in US dollar terms. The company delivered an operating profit of ZMW 361.4 million (USD 19.8 million), a significant increase compared to the previous year. Finance costs increased by 31% due to the extended utilization of overdraft and term loan facilities. Lower soya yields and prices negatively impacted the results in the cropping segment. The company's management focused on optimizing top-line growth through effective revenue management and stringent cost control measures.
Zambeef Products PLC remains dedicated to fortifying its brand equity and providing customers with high-quality products. The company's strategic focus areas include strengthening its core business, crafting a tailored human capital strategy, enhancing strategic partnerships, divesting non-core assets, and enhancing shareholder value.