Zambeef Half Year Trading Update May 2021

May 6th, 2021

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 announces that for the year ending 30 September 2021, revenue (reported in USD) is expected to be in line with current market expectations. However, EBITDA, EBIT and adjusted Profit Before Tax* are now expected to end 20% – 30% ahead of current market expectations (all reported in USD).

Despite the difficult operating environment resulting from the 2020 economic and Covid-19 related uncertainties, the encouraging first half period performance has been driven by a focus on revenue optimisation. The macroeconomic relative stability witnessed in the first half year period is expected to continue during the second half. The exchange rate has depreciated at a much slower rate while monetary supply in the economy has steadily improved. The good rainfall season and the commissioning of power projects is expected to help alleviate the load shedding situation and positively impact on performance in the second half of the financial year.

The continued focus on improved production efficiencies and overhead cost management across the business has delivered EBITDA for the first half ahead of previous management expectations. Inline revenue expectations reflect no material variances to previous expectations for sales volumes, sales pricing, and currency exchange rates.

The Group’s net debt** position as at 31 March 2021 was circa USD45 million (31 March 2020: USD55 million, 30 September 2020: USD39 million).

The Group expects its results for the six-month period ended 31 March 2021 to be released by the end of June 2021. Shareholders are advised that the information contained in this Trading Update has not been reviewed nor reported on by the external auditors.

*Adjusted Profit Before Tax (PBT) is defined as being adjusted for any unrealised foreign exchange gains or losses and any losses or gains made from asset disposals.
**Net debt is defined as cash and cash equivalents less bank loans and excludes IFRS16 lease liabilities

For further information, please contact:

Zambeef Products plc
Walter Roodt, Chief Executive Office
Faith Mukutu, Chief Financial Officer
Tel: +260 (0) 211 369003
finnCap (Nominated Adviser and Broker)
Ed Frisby/Kate Bannatyne/Tim Harper (Corporate Finance)
Tim Redfern (ECM)
Tel: +44 (0) 20 7220 0500
Autus Securities Limited (Sponsoring Broker)
Mataka Nkhoma
Tel: +260 (0) 761 002 002

By order of the Board

Mwansa Mutimushi
Company Secretary