When listed food processing company ZAMBEEF reports its 2021 full year financial results in Q3 2021, it expects a performance that is in the range of 20% to 30%, according to a SENS statement issued by the company.
“The Group announces that for the year ending 30 September 2021, revenue (reported in USD) is expected to be in line with current market expectations”, read a statement issued on 6 May 2021 by Board Secretary Mwansa Mutimushi. “However, EBITDA, EBIT and adjusted Profit Before Tax* are now expected to end 20% – 30% ahead of current market expectations (all reported in USD)”.
The forecast results are on the back of what has been a difficult period for many companies in agri-business. “Despite the difficult operating environment resulting from the 2020 economic and Covid-19 related uncertainties, the encouraging first half period performance has been driven by a focus on revenue optimization”.
ZAMBEEF however notes there has been subtle stability in key macro indicators compounded with better than expected rainfall patterns. “The macroeconomic relative stability witnessed in the first half year period is expected to continue during the second half. The exchange rate has depreciated at a much slower rate while monetary supply in the economy has steadily improved. The good rainfall season and the commissioning of power projects is expected to help alleviate the load shedding situation and positively impact on performance in the second half of the financial year”.
The company continues to run an efficient enterprise whose key focus in optimizing operations and minimizing costs. “The continued focus on improved production efficiencies and overhead cost management across the business has delivered EBITDA for the first half ahead of previous management expectations. Inline revenue expectations reflect no material variances to previous expectations for sales volumes, sales pricing, and currency exchange rates”.
As part of their strategic agenda, debt reduction has been a priority for the company. “The Group’s net debt** position as at 31 March 2021 was circa USD45 million (31 March 2020: USD55 million, 30 September 2020: USD39 million)”.
According to the released SENS announcement, “the Group expects its results for the six-month period ended 31 March 2021 to be released by the end of June 2021. Shareholders are advised that the information contained in this Trading Update has not been reviewed nor reported on by the external auditors”.