10th Dec 2024 14:41
(Alliance News) - Zambeef Products PLC on Tuesday reported lower annual profit due to rising costs and economic instability, but remained optimistic about future growth.
The Lusaka, Zambia-based cold food chain products producer and agribusiness said pretax profit declined 5.4% to ZMW192.7 million, or GBP5.50 million, from ZMW203.7 million in the 12 months to September 30.
Annual revenue rose 21.0% to ZMW7.32 billion from ZMW6.05 billion the year prior, Zambeef noted.
The company highlighted higher costs of fuel, electricity, farming inputs and grain, alongside Zambia's economic challenges, as contributors to profit decline. Zambeef was nonetheless confident in its growth prospects.
"Despite operating within a challenging trading environment characterised by a countrywide energy crisis, subdued crop yields, constrained consumer spending and a tight monetary policy, the group delivered robust results", the company said.
Zambeef expects copper prices to continue trending upward, and to boost foreign exchange earnings. The company said it would continue to dispose of non-core assets, optimise existing assets and expand capacity, with its USD100 million medium-term expansion plan progressing as planned.
"Zambeef's vertically integrated model and trusted brands position us well to seize emerging opportunities. We remain committed to navigating these complex conditions and reaffirm our commitment to long-term growth and sustainability", the firm said.
Zambeef shares were down 6.7% at 3.50 pence each on Tuesday afternoon in London.
By Holly Munks, Alliance News reporter
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