Zambeef – Full Year Trading Update

November 8th, 2023

Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana, is pleased to provide the following update on trading.

The Group’s forward guidance on financial trading performance for the year ended 30 September 2023 is expected to be above market expectations, despite a challenging operating environment with revenue, gross profit and adjusted EBITDA* (all in USD) expected to be between 5-15% higher than market expectations.

Reported profit before tax (USD) is estimated to be 30% higher than current market expectations. A higher taxation charge is expected to result in reported profit after tax below current market expectations but above the previous financial year.

The Group continued to see increasing demand for its products, supported by a price moderation approach, resulting in volume growth across most product categories. Lower than expected selling prices and higher input costs (which couldn’t fully be passed on to the consumer), including fuel and electricity, put pressure on gross margins which moderated in the second half. During H2, the Group had strong performance enhanced by better overall cost control.

The exchange rate depreciated steadily in H1 however, was more turbulent in H2, beginning the financial year at K15.9/USD and ending the period at K21.31/USD.

The Group is targeting the release of its financial results for the year ended 30 September 2023 by the end of November 2023. Shareholders are advised that the information contained in this Trading Update has not been reviewed nor reported on by the Company’s external auditors.

* Adjusted EBITDA is defined as earnings before interest, tax, depreciation, amortisation, impairments, loss on equity accounted investments, loss on disposal and net unrealised foreign exchange losses.

For further information, please visit or contact:

Zambeef Products plc
Faith Mukutu, Chief Executive Officer
Mboo Mumba, Chief Financial Officer
Tel: +260 (0) 211 369003
Cavendish Capital Markets Ltd (Nominated Adviser and Broker)
Ed Frisby/Abigail Kelly (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Tel: +44 (0) 20 7220 0500
Autus Securities Limited
Mataka Nkhoma
Tel: +260 (0) 761 002 002

About Zambeef Products plc

Zambeef Products plc is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the region, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, fish, flour and stockfeed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana.

It has 236 retail outlets throughout Zambia and West Africa.

The Company is one of the largest suppliers of beef in Zambia. Five beef abattoirs and three feedlots are located throughout Zambia, with a capacity to slaughter 230,000 cattle a year. It is also one of the largest chicken producers in Zambia, with a capacity of 8.8m broilers and 22.4 million day-old chicks a year. It is one of the largest piggeries, pig abattoirs and pork processing plants in Zambia, with a capacity to slaughter 75,000 pigs a year, while its dairy has a capacity of 120,000 litres per day.

The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 7,265 hectares of row crops under irrigation, which is planted twice a year, and a further 7,924 hectares of rainfed/dry-land crops available for planting each year.

Issued in Lusaka, Zambia on 07 November 2023

2023 FY Trading Update (LuSE).pdf