Zambeef Products PLC’s turnover increased by 14 .2 percent from K2.4 billion to K2.8 billion representing a 9.6 per cent increase for the financial year ended 30th September, 2018.
The company’s gross profit margins also increased from 32.8 percent to 34.5 percent, resulting in gross profit increase of 20.1 percent of K798.6 million to K959.2 million representing a 15.3 percent increase.
In its Revised Financial Statement posted on Lusaka Securities Exchange (LuSE), Zambeef’s operating profit increased by 36.5 percent from K87 million to K118 million representing a 31 per cent.
“Adjusted Profit Before Tax from continuing operations (after adjusting for unrealised exchange gains and losses) of K51.1 million compared with an Adjusted Profit Before Tax of K1 million in the previous year. Profit After Tax of K23.8 million, compared with Profit After Tax of K4.4 million for the same period last year,” the company said.
Zambeef said Retail and Cold Chain Foods Products division delivered a very satisfactory EBITDA of K193.5 million, versus a prior year comparative of K132.7 million.
“EBITDA margin increased by 9.7 per cent. The finance costs of the Group decreased by 20.1 percent from K87.9 million to K70.2 million. The reduction was a result of a reduction in net debt following the receipt of US$16 from IDC on the completion of the Zampalm transaction,” said Zambeef.
The company stated that Group net debt at year end was US$56 million, versus a prior year comparative of USD 64 million and that no additional tern finance was sourced.
And Commenting on the results, Zambeef Chairman Dr. Jacob Mwanza says the macro – economic climate is anticipated to be more challenging for Zambia in 2019, including high national debt levels and an increasingly volatile Kwacha exchange rate, which he says can impact on the growth of the Zambian economy.
Dr. Mwanza says despite these macro concerns, the new financial year has started well for Zambeef with continued revenue, margin and volume growth.
“The Group expects to continue to grow US$ earnings in 2019, and generate positive free cash in the financial year. It remains committed to employing EBITDA to fund working capital, capital expenditure for the financially viable projects, and to service debt and, as a result, the Group does not intend to raise further debt in the near future,” he said.
“In line with its stated strategic objectives, it plans to continue to reduce its debt levels in the medium term, which will help mitigate foreign exchange and interest rate risk.”

_________________________________________________________________________________________________

MONEY FM IS ZAMBIA’S FIRST AND ONLY BUSINESS & PERSONAL FINANCE RADIO STATION. WE FOCUS ON BUSINESS AND MONEY-RELATED TOPICS, AS WELL AS GENERAL NEWS AND DISCUSSION OF WIDER SOCIAL TOPICS SUCH AS HEALTH, EDUCATION, FOOD, MUSIC, FITNESS AND MORE.

________________________________________________________________________________________________