ZAMBEEF | 2015 Interim results

By Published On: June 10th, 2015Categories: Corporate announcement

In accordance with the requirements of the Securities and Exchange Act No. 38, Zambeef Products PLC announces its unaudited results for the six months ended 31 March 2015

Key Points

  • Overall, financial performance for the Group improved on the same period in the previous financial year, with gross profits up 25.3% to ZMW323.5m.
  • Gross margins increased from 32.7 per cent. for March 2014 to 38.3 per cent. for March 2015.
  • EBITDA increased by 91.9% to ZMW92.3m.
  • Net cash inflow from operating activities increased by 165% to ZMW168.2m; and net cash inflow before financing increased by 171% to ZMW61.0m.
  • Gross profits from core cold chain food product divisions increased by 47.7% to ZMW137.8m.
  • Administrative expenses continued to be tightly controlled with administrative costs (including depreciation) increasing by 7% in ZMW and decreasing by 6% in USD terms.
  • Zambian Kwacha depreciated by 21.5% against the US Dollar, resulting in exchange losses of ZMW51.6m (USD8.0m); and also adversely impacting divisions with USD denominated inputs.
  • Zamanita disposal completed on 1 June 2015, for USD26.4m (with third party debt of USD11.1m remaining in Zamanita), allowing the Group to unlock value/capital gain and reduce gearing.

Commenting on the results, Chairman Dr. Jacob Mwanza, said:

“We are pleased to announce that the financial performance for the first half of 2015 is up on 2014. In addition, the completion of the Zamanita disposal on 1 June 2015 has allowed Zambeef to unlock value, capital gains and reduce gearing for the Group.

“Operating in some of the fastest growing parts of the world, where both populations are increasing and real incomes growing rapidly, Zambeef has a clear intention to be an important player in meeting this increased demand for food products. Our strong platform now enables Zambeef to focus on driving the core business, the retailing of cold chain meat and dairy products delivered through the Group’s extensive processing, distribution and retail network.”

For further information, please download the full results on the link below:
Download the 2015 half year results (ZAMBIA)

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