Zambeef Plc | Results for the year ended 30 September 2011

November 28th, 2011

The Board of Directors of Zambeef Products PLC is pleased to announce the release of the Group’s 2011 annual report.

Below is a brief extract from the 2011 full year results:-

“Strong performance aided by the growth of the Zambian economy”

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 2011.

In June of this year, the Group raised approximately US$54.97 million by way of both a rights issue of new ordinary shares to existing investors via the Lusaka Stock Exchange (“LuSE”) (the “Rights Issue”), at K2,975 per share and a placing of new ordinary shares to institutional investors on admission to AIM (the “Placing”) at 38.06p per share.

Financial Highlights

  • Revenue up by 28% to US$ 206.8 million
  • Operating Profit up by 108% to US$ 14.8 million
  • Profit Before Tax up by 225% to US$ 10.6 million
  • Earnings Per Share up by 95% to USc 5.10
  • Proposed Dividend (to be approved by shareholders at AGM) of USc 0.45

Operational Highlights

  • Growth in revenue of 28 per cent. across the business
  • Gross margins improved from 31.4% (2010) to 34.1% (2011)
  • Profit after tax up 125% to US$9.4 million
  • Acquisition of Mpongwe farms in Zambia for US$4 6million consisting of 46,876 Ha (of which 2,994 Ha is irrigated and 7,667 Ha is rainfed land))
    • Increases capacity to produce soya beans in a soya bean deficient region for throughput to the growing and high margin edible oils division, Zamanita Ltd.
    • Zambeef now owns total hectarage of 8,000 Ha of irrigated and 9,000 Ha of rainfed arable, developed land
  • Dramatic turnaround in performance of Zamanita Ltd. with gross profit increasing 73 per cent. to US$13.1million
  • Expansion and upgrade of Zambian retail network; seven new retail outlets opened, eight existing retail outlets refurbished and first two wholesale stores established
  • Continued expansion in West Africa in partnership with Shoprite with gross profits of West African operations increasing by 54 per cent. to US$2.4million
    • Further development of our leased land in Nigeria to supply Shoprite’s increasing footprint in the area
    • Currently 4 Zambeef own stores in Nigeria
    • Currently 3 outlets in Shoprite stores in Nigeria; 2 in Ghana
    • Commencement of stock feed exports to Zimbabwe which, during the year, totaled over 3,000 MT

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

“We are delighted to report a strong performance of our business, aided by continued growth of the Zambian economy, a higher level of disposable income among our customers, stability of the Zambian Kwacha and single digit inflation. We have a strong infrastructure in place and we believe that, combined with our vertically integrated business model, this will enable us to realise our objective of becoming the leading food provider in both Zambia and the surrounding region.”

  • Read full results press release

To download the full 2011 annual report please click on the link below.