Zambeef | Trading Update

April 27th, 2022

Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana, is pleased to provide the following trading update.

The Group announces that for the full year ending 30 September 2022, revenue (reported in USD) is expected to be 10% above current market expectations, with EBITDA, EBIT and adjusted Profit Before Tax* being 15% – 25% ahead of current market expectations.

The half year period ended 31 March 2022 saw macroeconomic fundamentals stabilise. The exchange rate remained relatively stable and inflation steadily reduced. The delayed payment of non-interest- bearing government domestic arrears and a tight monetary policy resulted in constrained consumer spending, thereby impacting the Retail and Cold Chain Food business. Despite these headwinds, the Group is expected to post results ahead of market expectations, driven by a strong focus on cost control and favourable commodity pricing, particularly from higher soya bean prices from which the Cropping division is benefiting from.

In addition, a renewed focus in the financial year on price moderation, innovation, channel development and a sales execution strategy is expected to stimulate volume performance and, therefore, profitability during the second half of the financial year. Full year financial performance is also expected to benefit from the diversified portfolio of businesses in which we operate.

Notwithstanding our expectations, the Russia – Ukraine conflict and its impact on input raw material costs remain of concern.

The Group’s net debt** position as at 31 March 2022 was circa USD33million (31 March 2021: USD45million, 30 September 2021: USD42.7million).

The Group expects its results for the six-month period ended 31 March 2022 to be released by the end of June 2022. Shareholders are advised that the information contained in this Trading Statement has not been reviewed nor reported on by the external auditors.

*Adjusted Profit Before Tax (PBT) is defined as being adjusted for any unrealised foreign exchange gains or losses and any losses or gains made from asset disposals.
**Net debt is defined as cash and cash equivalents less bank loans and asset financing and excludes IFRS16 right of use lease liabilities.

For further information, please contact:

Zambeef Products plc
Walter Roodt, Chief Executive Officer
Faith Mukutu, Chief Financial Officer
Tel: +260 (0) 211 369003
finnCap Limited (Nominated Adviser and Broker)
Ed Frisby/Kate Bannatyne/Tim Harper (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Tel: +44 (0)207220 0500
Autus Securities Limited
Mataka Nkhoma (Broker)
Tel: +260 (0) 761 002 002

By Order of the Board

Mwansa M Mutimushi

Lusaka, Zambia 27 April 2022

Zambeef Products Trading Update (LuSE).pdf