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 2013.

Financial Key Points

* excludes the USD9.7m provision for the tax assessment, of which USD6.7m was charged to cost of sales issued on Zamanita Ltd. (“Zamanita”)

+ adjusted to exclude unrealised foreign exchange differences

^ includes USD14.25m proceeds from the sale of 49.0 per cent. of Zam Chick Ltd to Rainbow Chickens Ltd (“Rainbow”)

Operational Key Points

• Both sales and profitability impacted by the concerns surrounding imported beef products (which resulted in sales being approximately USD7.8m lower than expected, and one-off cost of USD1.4 million relating to the beef stock write off); USD2.4 million relating to the increase in finance cost and USD4 million due to lower wheat prices
• Increase in the Group’s overhead expenditure, impacted by the removal of the Zambian fuel subsidy together with higher labour costs due to an increase in the statutory minimum wage
• Despite the above challenges, it was encouraging to see the business return to cash generation
• In our key divisions, strongest gross profit growth seen in cropping (up 42 per cent.), edible oils (up 96 per cent.) and stock feed (up 16 per cent.)
• Continuation of the upgrading of Zambeef’s retail outlets, with 20 being refurbished during FY 2013
• Crushing resumed at Zamanita’s refurbished plant, with an increased annual capacity of 100,000 M.T.
• Crop yields continued to improve across Zambeef’s farms, led by Mpongwe
• Joint venture arrangements put in place with Rainbow to facilitate future expansion of the Group’s poultry operations

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

“2013 was a challenging year for Zambeef as the Group sought to respond to, and address the consequences arising from concerns surrounding imported beef products together with upward pressure on general overhead expenditure. Notwithstanding these challenges, it is heartening to see revenues continue to increase at the same time as the directors prepare the business for future growth across a number of divisions. A key financial highlight this year has been to return the business to positive cash generation, which is in line with the strategy set out when Zambeef listed on the AIM Market of the London Stock Exchange in June 2011. The focus on managing controllable costs continues to drive efficiency savings where possible, leaving the business well positioned to target future bottom line growth.”

For further information, please contact:

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, bread, 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 8,350 Ha of irrigated land and approximately 8,650 Ha of rain-fed/dry land, available for planting each year. The Group is also in the process of rolling out its West Africa expansion in Nigeria and Ghana, as well as developing a palm project in Zambia.

The Group employed an average of 5,715 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.

To download a copy of the annual report and abridged results for the year ended 30 September 2013 please click on the links below.

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Zambeef 2013 annual report
Zambeef FY2013 abridged results

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