Business
Trading Update
Trading Update.
About this update from Zambeef Products Plc
[{"type":"text","content":"\n\n \n\n \nZAMBEEF PRODUCTS PLC\n(\"Zambeef: of the \"Group\") [Incorporated in the Republic of Zambia] Company registration number: 31824 Share Code: ZAMBEEF\nISIN: ZM0000000201\n \n\n\n\n\n\n\n\n\n\n\n\n\n \nZambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana provides the following update on trading.\n \nThe Group now expects full financial year 2025 revenue and gross profit (reported in USD) to be approximately 10% and 3% below current market expectations respectively. This is due to both a weaker Zambian Kwacha expected for the period, and due to softer volume performance, driven by reduced consumer spending in an inflationary economic environment and the continued implementation of tight monetary policy by the central bank. As a result, reported profit before tax (reported in USD) is anticipated to be around 20% below current market expectations, also reflecting the weaker ZMW/USD reported earnings effect, revenue reduction and higher-than-expected financing costs. Despite this reduction against expectations, and a weaker earnings per share performance in the first half of this financial year (compared to the corresponding financial period ended 31 March 2024), reported profit before tax (reported in USD) for the full financial year ending 30 September 2025 is still expected to be ahead of the prior year.\n \nFor the half year ended 31 March 2025, the Group recorded a softer volume performance, but with growth achieved in key cold chain product categories. Overall performance fell short of expectations due to ongoing challenges in the operational and economic environment. These included tight monetary conditions aimed at curbing inflation, exchange rate volatility, the effects of the worst ever drought experienced (resulted in a power deficit and high commodity prices) and reduced government expenditure - all of which exerted pressure on disposable incomes.\n \nThe inflationary climate led to input price increases across the board. The Group was not able to fully pass on rising input costs to all our customers in all areas of our business, however, notably our Cropping business has achieved strong pricing, resulting overall in an increase to expectations for Group gross margin and EBIT margin for the full current finan...