Zambeef (AIM: ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce its results for the six month period ended 31 March 2013.

Financial Highlights

** excludes the USD9.7m provision for the tax assessment, of which USD6.7m was charged to cost of sales issued on Zamanita Ltd. (“Zamanita”) See below for a full explanation
⁺ adjusted to exclude unrealised foreign exchange differences

Highlights

• Significant growth in revenue and gross profit, up 20 per cent. and 24 per cent. respectively; and EBITDA growth up eight per cent.
• Gross margins increased from 35 per cent. for March 2012 (excluding the Zamanita tax provision) to 36.3 per cent. for March 2013
• Adjusted pre-tax profit declined 7 per cent. due to increases in overhead costs, increased finance costs and higher depreciation costs due to increased capital expenditure and realised exchange losses due to the depreciation of the Zambian Kwacha against the USD
• Strongest divisional growth seen in cropping (up 76 per cent.), edible oils (up 70 per cent.), stock feed (up 36 per cent.), and West Africa (up 30 per cent.)
• Oil seed crushing recommenced at Zamanita
• Increased crop yield performance at farming operations
• Disposal of 49 per cent. of Zam Chick Limited (“Zam Chick”) to Rainbow Farms Investments (Pty) Limited (“Rainbow”) for USD14.25 million – effective date of completion of the transaction was 31 March 2013
• Recently announced hatchery partnership with Rainbow.

Commenting on the results, Chairman Dr. Jacob Mwanza, said:
“We have been very encouraged by the good growth in turnover, gross margins, gross profit and EBITDA. Adjusted pre-tax profit was lower than last year’s strong comparative period, largely due to increased costs, which is being actively addressed by management. However, the successful integration at Mpongwe Farm and subsequent excellent crop production, the doubling of capacity at Zamanita, the increase in capacity of our broiler and layer operations and capacity improvements at Master Pork, all leave Zambeef in a strong position to take advantage of growing demand for food products in Zambia. As such, as we return the chicken and egg, pork, and dairy divisions to expected levels of profitability, we anticipate a stronger performance in the second half of FY 2013 and the Board expects the Company to start paying dividends from 2014 onwards.”

For further information, please contact:

Notes to Editors
The Zambeef Group is one of the largest integrated agri-businesses in Zambia, involved in the primary production, processing, distribution and retailing of beef, chickens, pork, milk, eggs, dairy products, fish, flour, bread, edible oils and stock feed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana. The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 8,350 Ha of irrigated land and approximately 8,650 Ha of rain-fed/dry land, available for planting each year.

The Group employed an average of 5,579 employees in the period.

Further information can be found on www.zambeefplc.com

This publication is in line with standard practice for London Stock Exchange.

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