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) and a gross profit of ZMW 1.8 billion (USD 101.0 million), representing year-on-year increases of 12.1% and 12.9% in kwacha terms, and 5.6% and 6.3% in US dollar terms, respectively. The company delivered an operating profit of ZMW 361.4 million (USD 19.8 million), a significant increase compared to the prior 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.
Zambeef Products PLC remains focused on strengthening its core business, investing in capacity, and growing market share. The company also aims to enhance its human capital strategy, forge strategic partnerships, divest non-core assets, and enhance shareholder value. With its diversified and vertically integrated business model, robust brands, and effective management, the company is well-equipped to seize future opportunities and navigate potential threats.