15th Jun 2022 16:52
Zambeef Products PLC - Zambia-focused cold chain foods and retail business - For the six months ended March 31, pretax profit rises fourfold to USD10.5 million from USD2.6 million, on revenue which grows 45% year-on-year to USD148.1 million from USD102.5 million.
Revenue growth is attributed to a strong performance in Cropping and Stockfeed, through higher grain prices, stockfeed market share gains and positive farming interventions, allowing for a boost in profitability.
Looking ahead, Zambeef expects macroeconomic stability for Zambia to continue over the medium term through improved investor sentiment, elevated copper prices and the potential for an International Monetary Fund supported debt management program.
"The group faced margin pressure arising from a rise in input costs such as Soya and energy across our value chains. However, our diversified portfolio of brands and vertically integrated businesses ensured the impact is balanced across the divisions, thereby enabling the overall growth in group profitability," says Chair Michael Mundashi.
"The board believes the key to sustainable growth lies in remaining committed to its strategic priorities, while mitigating the effects of dynamic economic and climate cycles. As such, the focus remains to invest in growth and optimisation opportunities and invest in our core businesses and the divestiture of non-core businesses," Mundashi adds.
Current stock price: 6.98 pence
12-month change: down 13%
By Dayo Laniyan; [email protected]
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