Zambeef operations do well in first half

Africa-focussed cold chain foods and retail business Zambeef issued its unaudited interim results for the six months ended 31 March on Wednesday, reporting revenue of $123.85m, up from $118.38m year-on-year.

The AIM-traded firm said gross profit rose to $46.58m from $38.49m, with operating profit rising to $6.3m from $4.5m.

Its profit before tax was $2.76m, compared to $0.59m a year ago, while profit after tax more than doubled to $1.18m from $0.53m.

EBITDA for the period stood at $11.11m, compared to $8.9m last year, with the company’s EBITDA margin improving to 8.97% from 7.51%.

Its operating profit margin was 5.08%, compared to 3.8% at the same time last year.

“The volatile economic conditions in Zambia over the previous two years, including sharp depreciation of the Kwacha against the US Dollar and relatively high inflation, presented challenges for the business,” said chairman Dr Jacob Mwanza

“.I am pleased to say that this period of uncertainty appears to be behind us.

“We are entering a period of relative stability in the economy, supported by tight fiscal and monetary control by Zambia's Ministry of Finance and the Bank of Zambia.”

Dr Mwanza said volume and margin growth in the company’s retail and cold chain food products division and stockfeed division indicated that the worst of the economic hardship had dissipated.

“The group will maintain its focus on expanding the retailing and distribution footprint and on improving margins and increasing profitability.

“We will continue to expand the cold chain food production capacity to meet increasing consumer demand; complete the build out of the new stock feed plant at Mpongwe and continue to strengthen our balance sheet, through the disposal of non-core assets.”