Zambeef records over K200 million operating profit
ZAMBEEF Products Plc has generated an operating profit of K299.3 million for financial year ended September 30 this year compared to K212.1 million in the prior year.
This includes income from asset held for sale.
The operating profit, excluding profit from asset held for sale, was K267.3 million compared to K210.5 million achieved in the previous financial year.
This is according to the financial results for the year ended September 30, 2021 posted on the Lusaka Security Exchange (LuSE).
It indicated that profit before tax was K203.9 million compared to a loss before tax of K22.7 million recorded in the previous financial year.
“The Group’s performance in the face of headwinds illustrates the strength of our vertically integrated business model, the strength of our brands and a good management team,” it stated.
The report indicated that macroeconomic fundamentals remained relatively stable during the financial year in the context of the previous period.
It stated that the local currency depreciated at a much slower rate in the first half and experienced steep appreciation in the second half.
“Increased consumer spending stemming from government dismantling of local arrears and Covid-19 economic stimulus package resulted in increased demand for our products,” it indicated.
Revenue and gross profit increased by 28 per cent and 21per cent respectively in Kwacha terms for the group due to the focus on revenue optimisation across most product lines.
However due to the depreciation of the Zambian Kwacha, the metrics in United States reduced by two per cent and seven per cent respectively in comparison to 2020.
“Despite an inflationary environment and exceptional costs in the numbers, Managements continued focus on cost control measures ensured administration and distribution expenses were contained within inflationary levels and only increased by 20 per cent from K1 billion in the previous corresponding period to K1.2 billion in the period under review,’ it indicated.