In accordance with the requirements of the Securities and Exchange Act No. 38, Zambeef Products PLC announces its results for the year ended 30 September 2015.

Key Operational Highlights

• Strong performance from our core cold chain food products division, achieved through a market-driven strategy involving retail outlet upgrades and the introduction of new macro outlets.
• Further progress in West Africa with Shoprite opening an additional three stores during the period and a further eight expected to open in the current financial year.
• Progress made with our two joint venture agreements with RCL Foods Ltd with the new hatchery coming into production before the year end and Zamchick continuing to expand.
• Disposal of our edible oils business, Zamanita Ltd, to Cargill for a cash consideration of USD27 million, which has also led to the establishment of a strategic partnership with Cargill.

Key Financial Highlights

• Despite significant macro-economic challenges, the Group has had an excellent operational performance for the year with operating profits increasing by 140% in USD and 189% in ZMW.
• Profit before tax excluding exchange losses increased by 590% in USD and 728% in ZMW.
• Unfortunately these excellent operational results have been severely impacted by the rapid depreciation of the Zambian Kwacha during the year resulting in exchange losses of USD20.2m (ZMK142m).
• The Group has generated significant cash during the period with net cash inflow from operating activities increasing by 171% in USD and 223% in ZMK.
• The Group’s core cold chain food product divisions performed particularly well, with gross profits increasing by 29.1 per cent. in ZMW terms and 7.6 per cent. in USD terms.
• Exchange losses for the year of USD20.2 million have reduced a pre-tax profit of USD15.1 million into a pre-tax loss of USD5.0 million.
• The large cash inflow from operations as well as the disposal of Zamanita have resulted in the Group reducing term debt by US$21.2m and its working capital facilities by USD25.0m while the total net debt in USD terms has reduced by USD46.2 million, from USD118.5 million (2014) to USD72.3 million.
• The Group converted a significant amount of its USD denominated debt into ZMW in order to mitigate future currency exchange risks/losses.

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