9th Jun 2023 14:22
Zambeef Products PLC - Lusaka-based cold chain foods and retail business with operations in Zambia, Nigeria and Ghana - Says total basic earnings per share for the financial half-year that ended March 31 is expected to be significantly lower than a year prior. EPS for all of financial 2022 was ZMW9.70, down from ZMW56.17 in financial 2021. Zambeef said it expects basic EPS to be down 113% in local currency and 112% in dollars, suggesting it expects to swing to loss in the half-year.
In financial 2022, which ended September 30 last year, Zambeef reported pretax profit of ZMW55.1 million, or around GBP2.6 million. Revenue rose 8.5% to ZMW5.39 billion from ZMW4.97 billion.
Says during the recent half-year, it saw demand for its products increase, supported by a price moderation approach, resulting in volume growth across most product categories. However, Zambeef says lower-than-expected selling prices and higher input costs put pressure on gross margins. "The cropping division was adversely impacted by a 71% drop in the price of soya beans, exacerbated by reduced yields, which was partially offset by the higher maize price," Zambeef explained.
Current stock price: 7.00 pence each, down 3.5% on Friday afternoon in London; unchanged over past 12 months
By Xindi Wei, Alliance News reporter
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