Zambeef (AIM: ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce its results for the year ended 30 September 2014.

Financial Performance Summary

* adjusted to exclude unrealised foreign exchange differences

Key Points

• 2014 financial year has been a year two very different halves.
• In H1 2014, the Group recorded a loss before tax of USD6.3 million; however, in H2 2014, the Group recorded a profit before tax of USD2.7 million.
• H1 2014 performance adversely impacted by macro-economic challenges and external influences, however, H2 2014 saw a strong turnaround of the business, led by the Group’s core cold chain food product divisions.
• Gross margin decreased from 34.7 per cent. for September 2013 to 33.8 per cent. for September 2014; however, robust cost control measures resulted in the cost/income ratio improving from 26.6 per cent. (2013) to 26.3 per cent. (2014).
• Net cash inflow from operating activities was a creditable USD13.8 million.
• 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.
• Acceleration of our strategic priorities, which include: the retailing of cold chain food products; forging strategic alliances and partnerships with acknowledged industry players; unlocking value and capital gains from within the Group (and to reduce debt/gearing); and developing the business into a regional food supplier.

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

“We are pleased to say that following a difficult year in 2013, which continued into the first half of the current financial year, the business has moved forward strongly in the second half of 2014, and we are hopeful that this situation will continue throughout the 2015 financial year.

We believe that the continued execution of our strategy will position us strongly to take advantage of the growth opportunities available. There remain a number of key long-term growth drivers for our business which present significant and tangible opportunities: a rapidly expanding consumer base, fuelled by an emerging middle class, increasing per capita income, rapid population growth and high levels of urbanisation.

Therefore we look forward to making continued progress towards our aim of becoming a leading regional food supplier.”

For further information, please contact:

Zambeef Products plc
Carl Irwin, Joint Chief Executive Officer – Tel: +260 (0) 977 999002
Francis Grogan, Joint Chief Executive Officer – Tel: +260 (0) 211 369000

Strand Hanson Limited – Tel: +44 (0) 20 7409 3494
Angela Hallett
James Spinney

Panmure Gordon (UK) Limited – Tel: +44 (0) 20 7886 2500
Tom Salvesen
Hugh Morgan
Peter Steel

Buchanan- Tel: +44 (0) 20 7466 5000
Mark Edwards
Sophie McNulty
Robbie Ceiriog-Hughes

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, 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 8,120 Ha of irrigated land and approximately 8,480 Ha of rain-fed/dry land, available for planting each year.

The Group employed an average of 5,861 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.

• Download the 2014 full year results
• Download the 2014 annual report

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