SENS ANNOUNCEMENT
("the notice" or "the announcement")
THE ISSUER
Zambeef Products Plc.
Incorporated in the Republic of Zambia
Company Registration Number: 31824
Share code: ZAMBEEF
ISIN: ZM0000000201
THE SPONSORING BROKER
Contact: Mataka Nkhoma |Tel: +260 840 513 info@autussecurities.com
APPROVALS
The captioned Notice or Announcement has been approved by:
- The Lusaka Securities Exchange Plc.
- The Securities and Exchange Commission
- Zambeef Products Plc
RISK WARNING
The Notice or Announcement contained herein contains information that may be of a price sensitive nature.
Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.
Issued on 10 December 2024
Zambeef Products PLC
("Zambeef" or the "Group")
[INCORPORATED IN THE REPUBLIC OF ZAMBIA] COMPANY REGISTRATION NUMBER: 31824
SHARE CODE: ZAMBEEF
ISIN: ZM0000000201
FULL YEAR 2024 FINANCIAL RESULTS
In accordance with the requirements of the Securities and Exchange Act No. 41 of 2016, Zambeef Products PLC announces its results for the year ended 30 September 2024.
STATEMENT OF
COMPREHENSIVE INCOME
Revenue
Change in fair value of biological assets Cost of sales
Gross profit
Administrative expenses Distribution Expenses Impairment of investment
Net impairment losses on financial assets Other income/(expenses)
Operating profit
Share of loss equity accounted investment Net Finance costs and income
Profit/(loss) before taxation Taxation charge
Profit/(loss) for the period from continued operations
Profit from discontinued operations
Total profit/(loss) for the period
Group profit/(loss) attributable to: Owners of Zambeef Products PLC Non-controllinginterests
Total comprehensive income for the period
Equity holders of the parent
Non-controlling interest
Earnings per share
Continued operations
Discontinued operations
Total basic earnings per share
Group | Company | ||
30-Sep-24 | 30-Sep-23 | 30-Sep-24 30-Sep-23 | |
Audited | Audited | Audited | Audited |
ZMW'000S | ZMW'000S | ZMW'000S | ZMW'000S |
7,315,845 | 6,046,157 | 6,939,511 | 3,384,408 |
1,040,358 | 643,197 | 933,588 | 568,975 |
(5,881,085) | (4,846,092) | (5,861,282) | (3,046,883) |
2,475,118 | 1,843,262 | 2,011,817 | 906,500 |
(1,682,765) | (1,336,486) | (1,431,766) | (741,469) |
(208,395) | (96,287) | (190,771) | (1,302) |
(34,370) | - | (34,370) | - |
(1,264) | (2,713) | 1,802 | (1,768) |
(61,132) | (46,419) | (74,116) | (18,064) |
487,192 | 361,357 | 282,596 | 143,897 |
- | (2,595) | - | (2,595) |
(294,531) | (155,089) | (294,188) | (123,921) |
192,661 | 203,673 | (11,592) | 17,381 |
(12,565) | (72,851) | 18,228 | (15,704) |
180,096 | 130,822 | 6,636 | 1,677 |
- | (10,604) | - | (10,604) |
180,096 | 120,218 | 6,636 | (8,927) |
179,840 | 118,612 | 6,636 | (8,927) |
256 | 1,606 | - | - |
180,096 | 120,218 | 6,636 | (8,927) |
286,575 | 990,425 | 132,568 | 870,323 |
(5,761) | (6,696) | - | - |
280,814 | 983,729 | 132,568 | 870,323 |
Ngwee | Ngwee | Ngwee | Ngwee |
59.83 | 42.99 | 2.21 | 0.56 |
- | (3.53) | - | (3.53) |
59.83 | 39.46 | 2.21 | (2.97) |
Group | Company | |||
ABRIDGED STATEMENT OF | 30-Sep-24 30-Sep-23 30-Sep-24 30-Sep-23 | |||
FINANCIAL POSITION | ||||
Audited | Audited | Audited | Audited | |
ASSETS | ZMW'000S | ZMW'000S | ZMW'000S | ZMW'000S |
Property, plant and equipment | 5,577,265 | 4,818,533 | 4,791,182 | 3,595,380 |
Biological assets | 440,895 | 408,398 | 362,780 | 355,755 |
Inventories | 2,088,778 | 1,656,487 | 1,929,536 | 1,104,477 |
Trade and other receivables | 346,130 | 332,703 | 472,287 | 1,277,442 |
Assets held for disposal | - | 157,640 | - | 157,640 |
Cash and cash equivalents | 334,415 | 271,222 | 292,763 | 209,854 |
Other Assets | 25,015 | 59,385 | 93,087 | 138,390 |
Total Assets | 8,812,498 | 7,704,368 | 7,941,635 | 6,838,938 |
Equity | 4,957,940 | 4,677,126 | 3,890,600 | 4,138,333 |
Long-Term Interest-bearing liabilities | 856,362 | 687,679 | 856,362 | 687,679 |
Long-Term leases | 13,350 | 15,622 | 13,350 | 7,403 |
Short-Term Interest-bearing liabilities | 1,525,671 | 972,827 | 1,525,671 | 783,148 |
Short-Term leases | 8,578 | 6,448 | 8,578 | 6,288 |
Trade and other payables | 917,674 | 834,191 | 1,172,966 | 886,026 |
Other equity and liabilities | 532,923 | 510,475 | 474,108 | 330,061 |
Total Equity and Liabilities | 8,812,498 | 7,704,368 | 7,941,635 | 6,838,938 |
ABRIDGED GROUP STATEMENT OF | Group | Company | ||
CASH FLOW | ||||
30-Sep-24 30-Sep-23 30-Sep-24 30-Sep-23 | ||||
Audited | Audited | Audited | Audited | |
ZMW'000S | ZMW'000S | ZMW'000S | ZMW'000S | |
Net cash inflow from operating activities | 171,351 | 177,691 | (117,747) | (109,570) |
Net cash (outflow) on investing activities | (805,971) | (813,270) | (529,387) | (498,833) |
Net cash inflow from financing activities | 622,097 | 382,820 | 622,097 | 384,123 |
Group restructuring transfer | - | - | (164,222) | - |
Effects of exchange differences | 5,125 | 11,898 | ||
Cash at the beginning of the period | (380,467) | (127,708) | (252,156) | (27,876) |
Cash at the end of the period | (387,865) | (380,467) | (429,517) | (252,156) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2024 | |||||||||||||||||||
Issued | Share | Preference | Foreign | Revaluation | Retained | Total attributable to | Minority | Total | |||||||||||
Group | ZMW' 000 | share | Share | exchange | owners of the | ||||||||||||||
premium | reserve | earnings | interest | equity | |||||||||||||||
capital | Capital | reserve | parent | ||||||||||||||||
At start of year | 3,006 | 1,125,012 | 1,000 | 660,390 | 1,964,087 | 930,261 | 4,683,756 | (6,630) | 4,677,126 | ||||||||||
Profit for the year | - | - | - | - | - | 179,840 | 179,840 | 256 | 180,096 | ||||||||||
Revaluation surplus | - | - | - | - | 5,734 | - | 5,734 | - | 5,734 | ||||||||||
Transfer of excess depreciation | - | - | - | - | (49,059) | 49,059 | - | - | - | ||||||||||
Deferred income tax | - | - | - | - | 133,328 | - | 133,328 | - | 133,328 | ||||||||||
Actuarial remeasurement losses | - | - | - | - | - | (2,523) | (2,523) | - | (2,523) | ||||||||||
Translation losses on foreign operations | - | - | - | (26,950) | - | - | (26,950) | (8,871) | (35,821) | ||||||||||
Total comprehensive income for the year | - | - | - | (26,950) | 90,003 | 226,376 | 289,429 | (8,615) | 280,814 | ||||||||||
At year ended 30 September 2024 | 3,006 | 1,125,012 | 1,000 | 633,440 | 2,054,090 | 1,156,637 | 4,973,185 | (15,245) | 4,957,940 | ||||||||||
Company | ZMW' 000 | Issued | Share | Preference | Foreign | Revaluation | Retained | ||||||||||||
share | Share | exchange | Total equity | ||||||||||||||||
premium | reserve | earnings | |||||||||||||||||
capital | Capital | reserve | |||||||||||||||||
At start of year | 3,006 | 1,125,012 | 1,000 | 687,048 | 1,561,799 | 760,468 | 4,138,333 | ||||||||||||
Reserves from business combination | - | - | - | - | 197,599 | (577,900) | (380,301) | ||||||||||||
Profit for the year | - | - | - | - | - | 6,636 | 6,636 | ||||||||||||
Transfer of excess depreciation | - | - | - | - | (40,170) | 40,170 | - | ||||||||||||
Deferred income tax | - | - | - | - | 128,455 | - | 128,455 | ||||||||||||
Actuarial remeasurement losses | - | - | - | - | - | (2,523) | (2,523) | ||||||||||||
Total comprehensive income for the year | - | - | - | - | 88,285 | 44,283 | 132,568 | ||||||||||||
At year ended 30 September 2024 | 3,006 | 1,125,012 | 1,000 | 687,048 | 1,847,683 | 226,851 | 3,890,600 |
Performance Overview
- The year ended 30th September 2024 saw the group achieve profitability growth with volume growth in key categories compared to the prior year, highlighting the Group's agility and adaptability in an ever-evolving market and economic landscape. The management team's relentless focus on optimizing top-line growth through effective revenue management, alongside rigorous cost control measures, has played a vital role in driving this performance success.
- In a challenging operating and economic environment, the company's relative successes underscore the strength of our organization's talent and the value of our enduring partnerships with customers, suppliers, and local communities. Reflecting on the period under review, it is evident that our focus on achieving commercial objectives, maintaining operational excellence, and driving cost optimization has propelled the business forward and strengthened our position across key sectors of operation
- The financial period saw considerable fluctuations in the Kwacha, with a depreciation of 26% against the USD. This volatility was driven by high USD demand, reduced mining activity, and sustained global interest rate hikes, impacting foreign investment in local bond auctions. Inflation closed the period at 15.6%, up from 12% the previous year, driven by currency depreciation and rising food and energy prices
Outlook
- Looking ahead, our strong brand presence will continue to serve as a cornerstone in maintaining customer loyalty. Additionally, our vertically integrated business model positions us favourably, ensuring a dependable supply chain and market for our products. We anticipate a stabilization in the economic environment following the recent understanding reached by the government with international bondholders regarding debt restructuring, coupled with the expected upswing in copper production and prices over the medium to long term. With these factors in mind, the Group is well- positioned to capitalize on the opportunities arising from a positive economic outlook, strategically investing for the future in anticipation of an upturn in consumer spending.
- Our ongoing commitment to consolidating our balance sheet through the disposal of non-core assets, optimising existing assets and the expansion of capacity remains a central focus. These measures are geared towards enhancing shareholder value, a goal we remain dedicated to achieving. By fortifying our financial foundation and strengthening our operational capabilities, we are poised for sustained growth and prosperity in the years ahead
Key Financial Highlights
- Escalating costs of vital inputs and commodities, such as fuel, imported inputs, and grain, resulted in increased production costs for our production divisions. However, the Group demonstrated volume growth in most divisions, leveraging the momentum from the performance at the half-way point of this financial year.
- The Group delivered a strong operating profit of ZMW 487.2 million (USD 19.7
million), reflecting a 35% increase in kwacha terms despite a marginal decline of
1% in US dollar terms compared to the prior year's ZMW 361.4 million (USD 19.8 million). This performance underscores the effectiveness of our cost optimization initiatives and the resilience of our operations amidst a challenging environment - Volume growth was recorded across most divisions, driven by disciplined revenue management and the successful execution of sales and operational strategies, building on the momentum established at the mid-point of the financial year.
- However, escalating costs of key inputs and commodities-such as fuel, imported materials, and grain-placed upward pressure on production costs across the Group. Additionally, interest expenses doubled, primarily due to increased debt to fund expansion activities, coupled with rising market interest rates.
- The Group ultimately recorded a profit of ZMW180.1 million (USD 7.4 million) for 2024 compared to ZMW130.8 million (USD 7.2 million) of value generated in the previous corresponding period.
- Despite these challenges, the Group remains steadfast in its commitment to delivering high-quality products, strengthening brand equity, and driving value creation. With a diversified and vertically integrated business model, strong brands, and a capable management team, we are well-positioned to capitalize on future opportunities and navigate potential risks with resilience and agility.
Strategic Focus
- Our strategic focus remains to optimise our existing asset utilisation, maximise return and drive profitability. We remain committed to our strategy of focussing on our core businesses, in which we strive to be the best in class. The continued investment in key strategic assets and divestiture of non-core assets will enable us to increase cash generation and profitability and therefore continue to deliver shareholder value. I am pleased to report that our $100 million medium-term expansion plans are proceeding as scheduled. We have maintained our dedication to enhancing capacity and efficiency in Cropping, Milling, Stockfeed, Dairy, and Poultry.
- Our strategic focus in optimising costs and rationalising the Group's operations continued throughout the period.
For further information, please visit www.zambeefplc.comor contact:
Zambeef Products plc | Tel: +260 (0) 211 369003 |
Faith Mukutu, Chief Executive Office | |
Patrick Kalifungwa, Chief Financial Officer | |
Cavendish Capital Markets Ltd (Nominated | Tel: +44 (0) 20 7220 0500 |
Adviser and Broker) | |
Ed Frisby/Abigail Kelly (Corporate Finance) | |
Tim Redfern (ECM) | |
Autus Securities Limited (Sponsoring Broker) | Tel: +260 (0) 211 840 513 |
Mataka Nkhoma (Sponsoring Broker) |
About Zambeef Products plc
Zambeef Products plc is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the region, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, fish, flour and stockfeed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana.
It has 236 retail outlets throughout Zambia and West Africa.
The Company is one of the largest suppliers of beef in Zambia. Five beef abattoirs and three feedlots are located throughout Zambia, with a capacity to slaughter 230,000 cattle a year. It is also one of the largest chicken producers in Zambia, with a capacity of 10.6m broilers and 31.8 million-day-old
chicks a year. It is one of the largest piggeries, pig abattoirs and pork processing plants in Zambia, with a capacity to slaughter 75,000 pigs a year, while it's dairy has a capacity of 120,000 litres per
day.
The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 7,787 hectares of row crops under irrigation, which are planted twice a year, and a further 8,694 hectares of rainfed/dry-land crops available for planting each year.
Mwansa M Mutimushi
COMPANY SECRETARY
Issued in Lusaka, Zambia on 10 December 2024
SPONSORING BROKER
Tel: +260 840 313, +260 761 002 002 | info@autussecurities.comwww.autussecurities.com
Autus Securities Limited is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia.
First issued on 10 December 2024