Agriculture, Finance, Zambia Sugar PlcNovember 16, 2017

Zambia Sugar at Full Year 2017
On the 9th of November 2017, Mwansa Mutimushi (Company Secretary) released through SENS announcement, the 5 month audited financials by order of the Zambia Sugar Board. FiZ has been monitoring the performance of the company post project PAAR. Although shareholders would have been anxious to hear news of a dividend, we believe patience will have […]

Agriculture, British American TobaccoOctober 3, 2017

BAT Re-positions, with cash in mind
When news of the BAT extra ordinary meeting (EGM) reached our desks through SENS announcement of 29th September, we were worried that the firm had finally given up and was now considering exit (following recent statements from the firm following their impending loss in excess of K100million, you cannot blame us). However, much to our […]

Agriculture, Zambeef Products PlcSeptember 28, 2017

Profit in sight – Zambeef
SENS announcement of 28 September 2017 will bring much delight to investors in Zambeef shares. Carl Irwin and Francis Grogan, the dual CEOs of the company announced that the effects of fungal disease that they believed would wipe out a substantial amount of value (projecting negative earnings), was in fact not as bad as they […]

Agriculture, British American TobaccoSeptember 18, 2017

Tobacco in peril in Zambia
The Tobacco value chain in Zambia is in peril. Last week, the CEO of BAT Zambia Godfrey Machanzi stated that the company had recorded a K100m loss in what has now becoming a downward trend in their performance. He indicates that the continued existence of the competitive force of illicit cigarettes has continuously and consistently […]

AgricultureSeptember 8, 2017

ZAMPALM: The prodigal son that never was
The story of biological assets can often be a long one for premier companies. We trailed the history of ZAMBEEF’s prodigal child who was recently sold to IDC. The story dates back to the epilogue of the last decade. According to the 2009 Annual Report, Zambeef secured a US25m term loan from DEG in order […]

Agriculture, Strategy, Zambeef Products PlcSeptember 7, 2017

Zambeef loses taste for oil
When the news hit our desk that Zambeef was to sell a 90% stake in Zampalm, its oil producing wing, we asked the question why? Although there were indications that the division was loss making in the recent results, looking at the capacity and potential the division had, it was surprising that the company had […]

AgricultureSeptember 7, 2017

IDC Bites Big in Move for Palm Oil
IDC’s recent acquisition of Zampalm makes interesting analysis. But before we get into the mechanics of the deal, a reminder on who IDC are is required. They are the investment holding company for Zambia’s State-Owned Enterprises (SOEs). The one of the duties of IDC is to ensure all new investments that ultimately generate earnings are able […]

Agriculture, MiningAugust 29, 2017

Competitive Forces:  How ZNFU and Mopani make a classic Porters Model
Warren Buffet once said that “anything that can’t go on forever will end”. This is true for businesses that over time face the economic reality of buyer and supplier forces that are external and exert pressure on the firm’s ability to sustain profits. We have been following closely the debacle at the firms ZNFU and […]

Agriculture, Zambia Sugar PlcAugust 3, 2017

ZamSugar: The Anatomy of a “PAAR” Deal
In their 2016 Annual Report (AR), ZamSugar (of the Illovo fame) reported commencement of an important project that would turnaround the fortunes of the company. The Product Alignment and Refinery (PAAR) project was the company’s signal to the market that they intended to reinforce their resources and enhance their capabilities. However, for a project of […]

Strategy, Zambia Sugar PlcAugust 2, 2017

Why Zambian Premier Companies Need Core Competences to Survive
There are companies on the Lusaka Stock Exchange that continue to generate increased revenue year on year. Of those companies, the manufacturing and vertically integrated companies have been the most impressive. Few have speculated that size does matter hence why these companies continue to produce increasing revenue records amidst challenging macro conditions that have been […]