Zambia Forestry & Forest Industries Corporation Reports Decline in Half-Year Profit, with a Profit After Tax of ZMW137.49 Million

What led to the significant rise in the Corporation's total assets and shareholder's fund in the first half of 2023?
The significant increase largely attributes to the gain in the fair valuation of biological assets, revaluation of property, plant, and equipment, as well as the acquisition of more assets.

Financial Results Summary

  • The Zambia Forestry & Forest Industries Corporation made a profit after tax of ZMW137.49 million in the half-year ending June 2023, a decline compared to ZMW428.71 million the same period in 2022.
  • A ZMW156.41 million gain in the fair value of biological assets largely contributed to the profit.
  • The Corporation made total sales of ZMW213.96 million compared with ZMW 135.12 million the previous year.
  • A newly introduced fair-trading process for allocating timber increased cash flow and sales during the period under review.
  • Total operating expenses were at ZMW173.11 million, less than ZMW 197.60 million incurred the same period in 2022.
  • As of 30 June 2023, total assets increased to ZMW 6,513 million, a substantial increase from ZMW 3,718 million from the same period in the previous year.
  • Shareholders’ funds increased to ZMW5,721 million, up from ZMW3,292 million in 2022.
  • The cash balance at the close of the period under review was ZMW73.33 million, higher than the ZMW12.49 million the same period in 2022.

Company Outlook

  • The Corporation projects revenue growth in the second half of the year, driven by expected increased sales from timber consumers and anticipated contracts with utility companies.
  • The Corporation plans to boost its value addition through projects like setting up a Kiln dryer and an additional creosote treatment processing line. Both projects are set for commissioning in the second half of the year.
  • A focus on the mechanization of plantation management activities, staff rationalization, and cost optimization could improve operations, productivity, and morale.
  • The Corporation plans to launch a capital raising program to facilitate expansion in 2024 onwards.

Useful links

About The Zambia Forestry & Forest Industries Corporation (

The Zambia Forestry and Forest Industries Corporation (ZAFFICO) is a leading forest and wood products company on the Lusaka Securities Exchange. With operations across Zambia, ZAFFICO is one of the country’s largest employers and is committed to sustainable forestry management. ZAFFICO’s core business is logging and trading timber, producing a variety of lumber, logs, plywood and firewood for sale. The company also produces paper and cardboard products, as well as bio-energy and charcoal.

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