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 update on trading.
The Group announces that for the year ended 30 September 2022 (all in USD), revenue, adjusted* EBITDA and reported profit before tax are expected to be in line with current market expectations. Adjusted* profit before tax is expected to be c.10% ahead of current market expectations due to higher than expected profits at assets held for sale/discontinued operations. A higher taxation charge is expected to result in reported profit after tax below current market expectations, but ahead of the prior year.
The year ended 30 September 2022 saw macroeconomic fundamentals stabilise. The exchange rate remained largely stable and the inflation rate steadily reduced. However, constrained consumer spending negatively impacted volume growth in our Retail and Cold Chain Food Products, particularly in the first half of the financial year. The period saw an escalation in key input prices such as fuel, chemicals, and fertiliser which impacted margins. In addition, the Group saw outbreaks of contagious bovine pleuropneumonia and African swine fever, both of which were successfully managed, in line with government guidelines. Despite these headwinds, performance in Cropping, Milling, and Stockfeed enabled the Group to achieve adjusted* EBITDA in line with market expectations owing to high grain prices, market share gains, and cost containment.
The Russo – Ukraine conflict and its impact on input raw material costs remain a concern. Coupled with that is the uncertainty around the global economy, which could have an effect on the local economy. Group performance is expected to remain resilient owing to the strength of our brands and the diversified portfolio of businesses in which we operate.
The Group expects its results for the year ended 30 September 2022 to be released by the end of November 2022. Shareholders are advised that the information contained in this Trading Update has not been reviewed nor reported on by its external auditors.
* Adjusted to exclude loss of approximately USD1.4m on disposal of fixed assets in FY22
For further information, please visit www.zambeefplc.com or contact:
Zambeef Products plc Tel: +260 (0) 211 369003
Faith Mukutu, Chief Executive Officer
Mulwanda Sichula, Acting Chief Financial Officer
finnCap Ltd (Nominated Adviser and Broker) Tel: +44 (0) 20 7220 0500
Ed Frisby/Abigail Kelly (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Autus Securities Limited Tel: +260 (0) 761 002 002