Zambeef records 43 percent revenue increase
July 21st, 2012
ZAMBEEF Products PLC has recorded an increase of 43 per cent in revenue representing K652 billion in the last six months.
The company said the growth in revenue posted excludes the provision of Zamanita’s tax liability, adding that the business performed well with significant improvement in gross margins up from 31.5 per cent in 2011 to 35 per cent in 2012.
Zambeef Product chairperson Jacob Mwanza said the company recorded a reduction in the cost to income ratio from 25.7 per cent in 2011 to 25 per cent in 2012 leading to the operating profit increasing by 150 per cent in Zambian Kwacha terms and 131 per cent in United States dollar term.
Dr Mwanza said revenue increased by 43 per cent to K652 billion excluding the provisions of Zamanita’s tax liability due to the key challenges encountered by Zambia Revenue Authority (ZRA).
Speaking in Lusaka when he announced the interim result for six month period ended March 31, 2012 in Lusaka yesterday, Dr Mwanza said during the period under review, ZRA imposed a tax liability on Zamanita Limited with respect to the importation of oil in the previous financial year.
In a speech read for him by Board director Irene Muyenga, Dr Mwanza explained that in 2010, ZRA undertook an audit of Zamanita and advised of an incorrect tariff code being used for importation of palm oil.
Dr Mwanza said following subsequent discussions with ZRA, anassessment of K56.5 billion was issued by the ZRA in 2010.
In light of the assessment, Zamanita made an appeal to the ZRA which resulted in the assessment set aside as incorrect and in December 2010, ZRA Commissioner General issued a full and final settlement of K8.7 billion which was paid and Zamanita considered the matter closed.
“However, in January 2012, the ZRA issued a notice overturning the full and final settlement decision of the Commissioner General and issued in its place an assessment of K54.6 billion which is theoriginal assessment plus accrued interest and VAT less the settlement paid to ZRA,” Dr Mwansa said.
He said Zambeef had been in on-going discussions with the ZRA to reach an appropriate settlement and has since referred the matter to the revenue appeals tribunals.
Dr Mwanza said the acquisition and integration of Mpongwe Farms into Zambeef’s operations had gone well.
Speaking at the same function, Zambeef Products chief executiveofficer Francis Grogan said the cropping section of the company had contributed 15 per cent of the revenue and 19 per cent of grossprofitability.
Mr Grogan said 15,946 hectares was planted for summer crops with the majority of the land dedicated to soya beans and harvested over 35,000 tonnes of soya beans.
Source: allAfrica.com
