30th Sep 2015 10:29
LONDON (Alliance News) - Zambeef Products PLC Wednesday said it expects revenue for its full financial year to be lower than market expectations, although operating profit will exceed expectations, resulting in its adjusted pretax profit being in line with the market consensus.
The company, which produces and sells meat and dairy products in Zambia, Nigeria and Ghana, said that while the cold chain food products division and cropping division performed well in the year ended September 30, the depreciation of the Zambian kwacha against the US dollar means that revenue will be lower than market expectations.
However, an improvement in its gross profit margin will lead to its operating profit exceeding expectations, which in turn will result in adjusted pretax profit being in line with the consensus.
"In line with the group's strategy, it is pleasing to note that gearing has reduced significantly following the disposal of Zamanita Limited. Furthermore, driving the cold chain food products through the retail network will continue to be a key focus," Joint Chief Executive Carl Irwin said in a statement.
Shares in Zambeef were trading down 7.7% at 10.50 pence following the announcement Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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