Zambeef Products 2021 September FY Results Presentation
December 21st, 2021
Financial Highlights
Operational Growth Driven by Revenue growth and cost efficiencies
Revenue
- Revenue growth of 28% in Kwacha terms on prior year driven by pricing as demand for products held, despite supply challenges and input cost pressures across most products
- USD revenues declined as growth metrics observed in Kwacha terms were eroded by the depreciation of the local currency
Gross Profit
- Gross Profit margins in the cropping division came under pressure due to the increase in the cost of USD priced inputs
- A high inflationary and supply constrained environment increased cost of sales figures significantly leading to reduced leveraged growth on revenue
Operating Profit
- Operating profit growth of 27% on prior year in kwacha terms owing to efficient management of overhead costs and effective pricing mechanisms
- Decline in USD Gross Profits were mitigated by lower central overheads as well as USD denominated transactions in the Cropping divisions
Revenue
- Revenue growth of 28% in Kwacha terms on prior year driven by pricing as demand for products held, despite supply challenges and input cost pressures across most products
- USD revenues declined as growth metrics observed in Kwacha terms were eroded by the depreciation of the local currency
Gross Profit
- Gross Profit margins in the cropping division came under pressure due to the increase in the cost of USD priced inputs
- A high inflationary and supply constrained environment increased cost of sales figures significantly leading to reduced leveraged growth on revenue
Operating Profit
- Operating profit growth of 27% on prior year in kwacha terms owing to efficient management of overhead costs and effective pricing mechanisms
- Decline in USD Gross Profits were mitigated by lower central overheads as well as USD denominated transactions in the Cropping divisions
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