Zambeef Products Plc · LSE:ZAM
Zambeef Products — FY2024 Earnings Presentation
17 slides from Zambeef Products's earnings presentation, Sep 30, 2024
Slide 1: Results Presentation for the year ended 30th September 2024
Results Presentation for the year ended 30th September 2024
Slide 2: Table Of Contents
Table Of Contents Zambeef at a Glance 3 Operating Environment 4 Macro-Economic Highlights 5 Key Measures of Performance 6 Financial Highlights 7 Divisional Analysis 8 Group Profit Analysis 9-10 Financial Overview 11 Divisional Reviews 12-13 Abridged Financials 14-15 Strategic and Operational Highlig
Slide 3: Feeding a growing region
Feeding a growing region Zambeef Brands A robust business model of vertical integration Cropping One of the largest row cropping operations in Zambeef Network Zambia; Double cropping of irrigated land means Zambeef plants 22,356 ha p.a Stockfeed The leading stockfeed producer in Zambia, operating tw
Slide 4: Operating Environment
Operating Environment ECONOMY INPUTS PRODUCTS ZMW / USD Standard Beef (K) Beef (All) 35% FY-24: 25.14 1% FY-24: 41.72 /Kg 8% FY-24: K56.93 /Kg FY-23: 18.61 FY-23: 42.13 /Kg FY-23: K52.93 /Kg Inflation Poultry Outgrower (K) Whole Chicken (K) 39% FY-24: 14.10% 16% FY-24: 33.6 /Kg 16% FY-24: K47.6 /Kg
Slide 5: Macro-Economic Highlights
Diesel Price & USD Spot (ZMW) Oct-23 20.0 22.0 24.0 26.0 28.0 30.0 32.0 34.0 21.08 Oct-23 Nov-23 Nov-23 Dec-23 Dec-23 Jan-24 Jan-24 Feb-24 Feb-24 Crude Oil (US$/barrel) Mar-24 Mar-24 Apr-24 Apr-24 USD USD Mid Rate May-24 +25% May-24 Spot Rate (ZMW) 27.32 Jun-24 Jun-24 Crude Oil & Pump Price Volatili
Slide 6: Key Measures of Performance
Key Measures of Performance Slow Growth amid expansionary efforts Daily Revenue Capital Employed (K'000s) (K'000s) Capital Employed ROCE 20,043.41 10.3% 16,610.32 9.0% 14,820.77 13,665.80 10,616.72 5.5% 4.9% 3.5% 4,903,901 5,042,548 5,009,261 3,994,328 4,720,119 2020 2021 2022 2023 2024 2020 2021 20
Slide 7: Financial Highlights
Financial Highlights Resilience during macro-economic headwinds ZMW ‘000 USD ‘000 Revenue +21% -11% • Revenue growth on the previous corresponding period was driven by volume growth as demand for products held. 7,315,845 295,113 331,478 • (FY - 2024 USD Average – 24.79, FY - 2023 USD Average – 18.23
Slide 8: Divisional Highlights (ZMW'000)
Divisional Highlights (ZMW’000) Retailing and Food Production Cropping & Milling Revenue Revenue +49% +28% 4,875,996 5,349,141 3,799,233 3,579,502 2024 2023 2024 2023 • We experienced notable • The outbreak of the anthrax • The Cropping segment • The Stockfeed segment sales volume growth across viru
Slide 9: Group Profit Analysis (ZMW'000)
Group Profit Analysis (ZMW’000) GP Growth Retailing & Retailing & Retailing & Food Production 20.9% Food Food Cropping & Milling 49.2% Production Production 1,172,392 969,955 47% 53% Gross Profit Gross Profit Cropping & 2024 2023 Milling 2,475,118 Cropping & 1,843,262 1,302,726 Milling 53% 873,307 4
Slide 10: Group Profit Analysis (USD'000)
Group Profit Analysis (USD’000) Retailing & Retailing & GP Growth Food Retailing & Food Production -11.1% Food Production, Production Cropping & Milling 9.8% 47,293, 53,177 47% 53% Gross Profit Gross Profit 2024 2023 99,843 Cropping & 101,056 Milling Cropping 47,879 & Milling, 47% 52,550, 53% OP Gro
Slide 11: Financial Overview – Income Statement
Financial Overview – Income Statement 2024 2023 2024 2023 ZMW’000 ZMW’000 %∆ USD’000 USD’000 %∆ Revenue 7,315,845 6,046,157 21.0% 295,113 331,478 -11.0% Change in fair value of biological assets 1,005,832 643,197 56.4% 40,574 35,263 15.1% Cost of Sales (5,846,559) (4,846,092) 20.6% (235,844) (265,68
Slide 12: Divisional Review - Retailing & Food Production
Divisional Review - Retailing & Food Production 2024 2023 2024 2023 Highlights ZMW'000 ZMW'000 USD'000 USD'000 ❑ Volume growth across all protein Revenue 5,349,141 3,579,502 49.4% 215,778 196,245 10.0% categories except pork, despite Gross Profit 1,172,392 969,955 20.9% 47,293 53,177 -11.1% operatin
Slide 13: Divisional Review - Cropping & Milling
Divisional Review - Cropping & Milling 2024 2023 2024 2023 Highlights ZMW'000 ZMW'000 USD'000 USD'000 ❑ High grain prices for the Summer Revenue 4,875,996 3,799,233 28.3% 196,692 208,291 -5.6% Crop helped enhance the segments Gross Profit 1,302,726 873,307 49.2% 52,550 47,879 9.8% financial position
Slide 14: Abridged Balance Sheet
Abridged Balance Sheet 2024 2023 2024 2023 ZMW'000s ZMW'000s USD '000s USD '000s Non – current assets 5,746,252 5,001,277 216,514 237,930 Current assets 3,066,246 2,703,091 115,533 128,596 Total assets 8,812,498 7,704,368 332,047 366,526 Capital and reserves 4,957,940 4,677,126 186,810 222,509 Non –
Slide 15: Debt Analysis
Debt Analysis 2024 2023 ZMW'000 ZMW'000 % Highlights Borrowings 2,382,033 1,660,506 43.45% ❑ The increase in debt reflects Obligations under finance lease 21,928 22,070 -0.64% the seasonal working capital Cash & Cash Equivalents 334,415 271,222 23.30% requirements for farming Net Debt 2,069,546 1,41
Slide 16: Strategic and Operational Highlights
Strategic and Operational Highlights Focus and strengthen our core business by investing in capacity and grow market share • We are on course with our US$100 million expansion plan that will double our Mpongwe Farms crop production while adding associated value and capacity to the company’s stock fe
Slide 17: Operating Environment | Outlook
Operating Environment | Outlook Indicators 2020 2021 2022 2023 2024 *2025 GDP Growth % -2.8 4.6 5.2 4.3 2.3 3.7 Source: Bank of Zambia MPC % 8 8.5 9 11 13.5 14 Source: Bank of Zambia Inflation % 15.70% 22.08% 15.1% 10.9% 15.6% 12% Source: ZamStats ZMW per $ 20 21.1 17.2 20.23 26.3 30 Source: Bank of