Zambeef registers growth and shows resilience in the face of adversity

 

30 December 2024, Lusaka, Zambia: Zambeef Products Plc (Zambeef) recorded growth in the financial year ended 30 September 2024, achieving revenue growth (in Zambian Kwacha) alongside volume growth in key categories compared to the prior year. These results highlight the Group’s resilience, agility, and adaptability in an ever-evolving market and economic landscape.

 

At Zambeef’s Annual General Meeting, which coincided with the company’s 30th anniversary, the Chief Executive Officer, Ms. Faith Mukutu, acknowledged the Group’s growth and emphasized that Zambeef is well-positioned to capitalize on emerging opportunities in sectors including retail, food products, and animal feeds.

“We are confident that our continued strategic focus on optimizing cost efficiency and expanding capacity, alongside the disposal of non-core assets, will further strengthen our operational foundation and shareholder value, as well as mitigate some of the risks associated with the current difficult trading environment,” concluded Ms. Mukutu.

 

Ms. Mukutu, further commended the collective efforts of the Zambeef team in delivering strong financial results. “These results are a testament to the creativity, dedication, and innovation of our people. As we celebrate 30 years of feeding and nourishing the nation, we also look ahead to a future defined by sustainable growth and shared prosperity,” said Ms. Mukutu.

 

The Group delivered robust results, evident in its revenue of ZMW 7.3 billion (USD 295.1 million) and gross profit of ZMW 2.5 billion (USD 99.8 million), reflecting a 21% increase in Kwacha terms.

 

This is despite significant challenges faced in the year, including high inflation and volatile exchange rates that impacted operations early in the period. The climate crisis continued to affect crop yields and energy generation. Additional challenges, such as energy deficits, led to rising costs of critical inputs like electricity, grain, and imported materials. Local currency depreciation and El Niño weather effects further pressured margins during the financial year.

 

The outbreak of anthrax in some parts of the country also restricted cattle movement and negatively impacted public perception, leading to reduced beef volumes in the first quarter. However, Zambeef saw a recovery in beef volumes as bans on animal movement were lifted from the second to the fourth quarter, improving availability. Despite these challenges, Zambeef’s management remained focused on its strategy of revenue maximization, volume growth, and cost optimization.

 

Zambeef continues to make progress on its five-year, $100 million expansion plan announced in 2022. The Mpongwe Farm expansion has advanced substantially, with the first phase significantly improving production efficiency across the food value chain. The successful harvest of an additional 9,460 metric tonnes of wheat in 2023 marked a key milestone in the company’s operational capabilities. These initiatives demonstrate Zambeef’s commitment to addressing Zambia’s critical food security needs while enhancing operational capacity.

 

Ms. Mukutu also outlined the Group’s sustainability initiatives, which remain central to Zambeef’s strategy. Key achievements included optimizing energy use, advancing renewable energy exploration, and prioritizing water conservation to minimize environmental impact while supporting broader community development. “At Zambeef, we continue to create jobs, foster local enterprise, and uplift communities, especially in rural Zambia. We have been able to supplement nutrition with protein in hospitals, orphanages, schools, and hospices with an investment of over ZMW 3 million,” said Ms. Mukutu.

 

Speaking earlier, the Zambeef Board Chairperson, Mr. Patrick Wanjelani, highlighted the Group’s tenacity in an evolving market, stating. “This year, we demonstrated our ability to adapt and thrive, focusing on strategic investments and operational efficiency in the region to drive measurable growth and deliver value to our stakeholders. This is critical to achieving our business objectives and contributing to the well-being of the communities we serve.

 

Throughout its 30-year existence, Zambeef has remained committed to achieving long-term business sustainability. This includes ongoing efforts toward medium-term expansion plans, increasing capacity, and enhancing efficiency across its divisions. The company maintains ethical practices, the highest quality operational standards, effective animal disease prevention and control measures, and the provision of high-quality, affordable, and nourishing products for the nation.

 

Issued by: Ezekiel Sekele- Executive – Corporate Affairs and Sustainability

 

About Zambeef Products PLC

Zambeef Products PLC (“Zambeef”) is the largest integrated diversified food producer and agri-business company in Zambia and one of the largest in the southern Africa region. Zambeef is listed on both the Lusaka Securities Exchange and the AIM market of the London Stock Exchange. It is involved in the primary production, processing, distribution and retailing of beef, chicken, pork, dairy, fish, flour, stock feed and day-old chicks throughout Zambia and the surrounding region.  Zambeef also has one of the largest row cropping operations in Zambia, growing wheat, soya beans and maize.

For updates, promotions, and the latest news, please visit:

ZAMBEEF Products PLC (ZAMBEEFplc.com)

Follow ZAMBEEF on LinkedIn and Facebook:

https://www.linkedin.com/company/zambeef-products-plc

https://www.facebook.com/ZAMBEEF

For media inquiries and further information, please contact:

ZAMBEEF Corporate Affairs – Group Communications Manager

Mwamba Chasaya- Siame

Email: media@zambeef.co.zm