10th Jun 2015 07:59
LONDON (Alliance News) - Zambeef Products PLC Wednesday reported a narrowed pretax loss in the first half of its financial year, which it said would have been a profit if the Zambian kwacha had not depreciated by 22% in the period, although revenue declined in half of its business areas.
Zambeef produces and sells meat and dairy products in Zambia, Nigeria and Ghana. It said its pretax loss in the six months to March 31 narrowed to USD3 million from USD6.5 million in the same period the prior year. Adjusted to exclude unrealised foreign exchange differences, Zambeef made a pretax profit of USD0.1 million, compared with USD3.2 million loss the year before.
However, revenue was down 6.8% to USD130.7 million from USD140.2 million at actual exchange rates, as a sales decline in the Cropping, Beef, Edible Oils, Chicken & Egg and Mill divisions, offset sales growth in the Stock Feed, Milk & Dairy, West Africa, Pork and Fish & Leather divisions.
"Operating in some of the fastest growing parts of the world, where both populations are increasing and real incomes growing rapidly, Zambeef has a clear intention to be an important player in meeting this increased demand for food products. Our strong platform now enables Zambeef to focus on driving the core business, the retailing of cold chain meat and dairy products delivered through the group's extensive processing, distribution and retail network," Chairman Jacob Mwanza said in a statement.
Shares in Zambeef were trading up 4.6% at 11.90 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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