In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Zambeef Products Plc (the “Company” or the “Group”) hereby advises the shareholders of the Company that the Total Basic Earnings per Share for the financial half year ended 31 March 2023 is expected to be 113% and 112% lower (in Zambian Kwacha and US Dollar terms respectively) than that of the corresponding financial period ended 31 March 2022.
During the half year period to 31 March 2023, the Group has seen demand for its products increase, supported by a price moderation approach, resulting in volume growth across most product categories. However, lower than expected selling prices and higher input costs (which could not be passed on to the consumer), including higher genset diesel costs in the first quarter of 2023, put pressure on gross margins. The cropping division was adversely impacted by a 71% drop in the price of soya beans, exacerbated by reduced yields, which was partially offset by the higher maize price. The higher maize price further exerted pressure on stockfeed margins. The operating environment was characterised by increased competition, no real growth in consumer spending and unstable macroeconomic fundamental effects, largely driven by delayed finalisation of the country’s debt restructuring.
The Group expects its results for the half year period ended 31 March 2023 to be released by the end of June 2023. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s Securities until the publication of results. The shareholders are further advised that the information contained in this Trading Statement has not been reviewed nor reported on by the external auditors.