Zambeef FY earnings set to beat expectations

Beef producer Zambeef Products said on Thursday that full-year earnings looked set to beat expectations despite the "difficult operating environment" resulting from the Covid-19 pandemic.

Zambeef stated revenues were expected to be in line with current market expectations, while underlying earnings and pre-tax profits were now expected to come in 20-30% ahead of current market expectations.

The AIM-listed group said it had put on an "encouraging" first-half performance, driven by a focus on revenue optimisation, and added that the relative macroeconomic stability witnessed in the first half of the year was expected to continue during the second.

Zambeef said: "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. In-line revenue expectations reflect no material variances to previous expectations for sales volumes, sales pricing, and currency exchange rates."

As of 0940 BST, Zambeef shares had surged 12.94% to 7.20p.