Business
Year End Trading Update
Year End Trading Update.
About this update from Zambeef Products Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8510P\n Zambeef Products PLC\n 21 October 2021\n \n \n \n \n \n \n 21 October, 2021\n Zambeef Products plc\n \n (\"Zambeef\" or the \"Group\")\n \n \n \n \n Year End Trading Update\n Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana, is pleased to provide the following update on trading.\n \n The Group announces that for the year ended 30 September 2021, revenue (reported in USD) is expected to be between 10% - 15% ahead of current market expectations, with EBITDA and EBIT being ahead by 10% - 12%. Adjusted Profit Before Tax* is expected to be 65 - 75% ahead of current market expectations.\n \n Despite the rising input costs and global food prices, and a difficult operating environment resulting from the 2020 economic and Covid-19 related uncertainties, the positive full year performance has been driven by sustained consumer demand for our products. The macroeconomic fundamentals remained relatively stable during the financial year in the context of the previous comparative year. The local currency depreciated at a much slower rate in the first half and experienced steep appreciation in the second half. Increased consumer spending stemming from the Covid-19 economic stimulus package resulted in increased demand for our products. The good rainfall season helped alleviate load shedding and therefore positively impacted on the financial performance.\n \n The continued focus on cost management across the business has maintained profitability with exchange gains and lower interest costs resulting in a higher Adjusted Profit Before Tax*.\n \n The Group has taken appropriate actions to restructure debt, with an increased percentage of facilities now denominated in Kwacha. Net debt** position as at 30 September 2021 is expected to close at USD42.7 million (2020: USD39 million) and ZMW714.8 million (2020: ZMW790.1 million) in Kwacha terms. The ZMW/USD exchange rate for the period closed at ZMW16.74 (2020:ZMW20.14).\n \n The Group expects its audited results for the year ended 30 September 2021 to be released in December 2021. Shareholders are advised that the information contained in this Trading Statement has not been reviewed nor reported on by the external auditors.\n \n *Adjusted Prof...