In accordance with the requirements of the Securities and Exchange Act No. 38, Zambeef Products PLC announces its unaudited results for the six months ended 31 March 2014.

Key Points

• Financial performance adversely impacted by macro-economic challenges, increased competition and external events.
  • Revenue down 2% to ZMW 789.5m (2013: ZMW 809.2m)
  • Gross Profit down 12% to ZMW 258.1m (2013: ZMW 293.4m)
  • EBITDA down 45% to ZMW 48.1m (2013: ZMW 87.3m)
  • Pre Tax Profit/ Loss ZMW 36.8m loss (2013: ZMW 33.8m profit)
  • Net Cash Inflow Before Financing ZMW 22.5m inflow (2013: ZMW 24.8m outflow)
• Gross margins decreased from 36.3 per cent. for March 2013 to 32.7 per cent. for March 2014.
• Good performances from the cropping, milk/dairy and West Africa divisions.
• The two JVs with Rainbow (Zam Chick and Zamhatch) are progressing smoothly and we expect to see the full benefits over the next 12 months, when Zamhatch becomes operational.
• Export sales grew 27.8 per cent. to ZMW 123.4 million (USD 20.2 million) in H1 – now represent 15.6 per cent. of revenues.
• Net Cash Inflow Before Financing of ZMW 22.5 million (USD 4.0 million).
• Acceleration of longer term strategy to position Zambeef as a regional food producer – to generate geographically diversified revenue streams and leverage significant growth opportunity.

Commenting on the results, Chairman Dr. Jacob Mwanza, said:

“Our financial performance has been adversely impacted by macro-economic challenges and external events. These factors, together with increased competition, have resulted in the Group recording a loss before tax for the first half of the year. This is despite tight controls on costs. However, it was encouraging to see a positive net cash inflow before financing of ZMW 22.5 million. With the operational platform which we have established over the last few years and the demographic drivers for growth in Southern Africa, we believe that Zambeef is well placed to become a regional food player. With this goal in mind, we are actively looking at forging strategic alliances and partnerships with global industry players, as well as unlocking value and capital gains from within the Group.”

For further information, please contact:

Accordingly, investors in Zambeef Products PLC are advised to exercise caution when trading in the Company’s shares and should seek the professional advice of a broker or investment advisor for guidance.

Further information can be found on www.zambeefplc.com.

Download the 2014 interim results

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