ZAMBEEF | Press Release – 2015 full year results (Zambia) and annual report

By Published On: November 25th, 2015Categories: Corporate announcement

In accordance with the requirements of the Securities and Exchange Act No. 38, Zambeef Products PLC announces its results for the year ended 30 September 2015.

Key Operational Highlights

  • Strong performance from our core cold chain food products division, achieved through a market-driven strategy involving retail outlet upgrades and the introduction of new macro outlets.
  • Further progress in West Africa with Shoprite opening an additional three stores during the period and a further eight expected to open in the current financial year.
  • Progress made with our two joint venture agreements with RCL Foods Ltd with the new hatchery coming into production before the year end and Zamchick continuing to expand.
  • Disposal of our edible oils business, Zamanita Ltd, to Cargill for a cash consideration of USD27 million, which has also led to the establishment of a strategic partnership with Cargill.

Key Financial Highlights

  • Despite significant macro-economic challenges, the Group has had an excellent operational performance for the year with operating profits increasing by 140% in USD and 189% in ZMW.
  • Profit before tax excluding exchange losses increased by 590% in USD and 728% in ZMW.
  • Unfortunately these excellent operational results have been severely impacted by the rapid depreciation of the Zambian Kwacha during the year resulting in exchange losses of USD20.2m (ZMK142m).
  • The Group has generated significant cash during the period with net cash inflow from operating activities increasing by 171% in USD and 223% in ZMK.
  • The Group’s core cold chain food product divisions performed particularly well, with gross profits increasing by 29.1 per cent. in ZMW terms and 7.6 per cent. in USD terms.
  • Exchange losses for the year of USD20.2 million have reduced a pre-tax profit of USD15.1 million into a pre-tax loss of USD5.0 million.
  • The large cash inflow from operations as well as the disposal of Zamanita have resulted in the Group reducing term debt by US$21.2m and its working capital facilities by USD25.0m while the total net debt in USD terms has reduced by USD46.2 million, from USD118.5 million (2014) to USD72.3 million.
  • The Group converted a significant amount of its USD denominated debt into ZMW in order to mitigate future currency exchange risks/losses.

For further information, please contact:

Zambeef Products PLC
Carl Irwin, Joint Chief Executive Officer
Francis Grogan, Joint Chief Executive Officer
Tel: +260 (0) 211 369003
Pangaea Securities Limited
Ceasar Siwale, Chief Executive Officer
Wendy Tembo, Head Brokerage and Trading
Tel: +260 (211) 220707
or 238709/10

Download full reports

Download the 2015 full year results (ZAMBIA)
Download the 2015 annual report

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