11th Jun 2021 14:03
Zambeef Products PLC - Zambia-focused cold chain foods and retail business - Interim pretax profit improves sharply to USD2.6 million from USD898,000 the year before. Revenue in six months to March 31 drops 21% year on year to USD102.5 million from USD129.2 million. Administrative expenses in first half fall to USD27.9 million from USD36.0 million a year before. Exchange losses halve to USD2.0 million from USD4.5 million.
"The group had a strong start to the financial year, delivering results ahead of pre-pandemic levels. Demand for products, particularly poultry products, remained strong allowing the group to remain in line with revenue expectations," company says.
It adds: "The cost containment embarked on by management also continued to yield significant savings and contributed positively to the results. Improvements in the load shedding situation, following the good regional rains, resulted in reduced generator fuel costs and improved production efficiencies."
Notes rising inflation put pressure on consumer disposable income and reduced the share of wallet going towards food spend. Adds supply constraints on some product lines further put pressure on cost of inputs.
Chair Michael Mundashi adds: "The board remains committed to achieving the group's strategic priorities while navigating the seasonal market and economic challenges. The focus will be on optimising the assets of core businesses to pay down debt and to invest for the future. The macroeconomic climate is expected to remain challenging for Zambia in 2021, characterised by high national debt levels and continued foreign currency supply constraints which could negatively affect business activity across the economy."
Current stock price: 8.35 pence
Year-to-date change: up 63%
By Paul McGowan; [email protected]
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