LUSAKA - Zambeef Products PLC (AIM: ZAM), a prominent cold chain food products and agribusiness company, has released its full-year results for the period ending September 30, 2024. The company, with operations in Zambia, Nigeria, and Ghana, reported a revenue increase of 21% in Zambian Kwacha. However, this growth was offset by an 11% decline in revenue when measured in US dollars, reflecting the impact of currency fluctuations and challenging economic conditions.
The company’s year-end financials showed a gross profit increase of 34% in local currency terms, but a slight decrease of 1.2% in US dollars. Operating profit saw a 34.8% rise in Kwacha, but remained nearly flat in USD comparison. Despite these mixed results, Zambeef achieved a profit after tax of ZMW 180.1 million (USD 7.4 million), a 37.7% increase from the previous year in Kwacha terms, though this was a marginal decrease in US dollar terms.
Zambeef’s performance was influenced by significant currency depreciation, with the Kwacha falling by 26% against the US dollar, high inflation rates, and increased costs for key inputs such as fuel and imported materials. These factors were compounded by global interest rate hikes that affected foreign investment and reduced mining activity.
According to Chairman Patrick Wanjelani, the company faced high inflation and volatile exchange rates that impacted operations early in the financial year. He acknowledged the challenges, including energy deficits leading to rising costs, and emphasized management's focus on revenue maximization, volume growth, and cost optimization.
Despite the economic headwinds, Zambeef's vertically integrated business model and strategic focus on its core businesses allowed it to navigate the challenges. The company recorded volume growth across most divisions, underpinned by disciplined revenue management and effective execution of sales and operational strategies.
The company's financial report is based on a press release statement and provides a comprehensive overview of its performance, underscoring the resilience of its business model in a complex economic landscape. Looking forward, Zambeef remains committed to delivering value to shareholders and is positioned to navigate potential business threats while capitalizing on profitable opportunities.
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