23rd Apr 2024 16:11
(Alliance News) - Zambeef Products PLC on Tuesday said it will not meet profit and revenue market expectations for its financial year ending September 30.
The Lusaka-based cold chain foods and retail business with operations in Zambia, Nigeria and Ghana said it expects its revenue and gross profit for the year ending September 30 to be around 15% below current market expectations.
Revenue and gross profit in financial 2023 were USD331.5 million and USD101.0 respectively.
Zambeef also expects pretax profit to be around 30% below current market consensus due to higher than expected financing costs and an impairment of the investment in an associate," it said.
The company explained that in the six months to March 31, it has endured a "tough market and operating environment amidst continued constrained consumer spending exacerbated by the ongoing tight monetary policy of Zambia's Central Bank put in place to address inflation and exchange risk, and constrained government spending."
Earlier this month, Zambeef announced the appointment of Monica Musonda as interim chair following the death of Michael Mundashi in March.
Musonda has been an independent non-executive director to Zambeef's board since March 2021.
Mundashi, who died on March 26 due to an unspecified illness, had held the role of chair since December 2019. Commenting on his passing, Zambeef had said: "We mourn with and pass our condolences to his family. A further announcement will be made in due course."
Shares in Zambeef were flat at 6.00 pence per share in London on Tuesday.
By Sabrina Penty, Alliance News reporter
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