Zambeef half year earning soar 360%
London Alternative Market (AIM: ZAM) and Lusaka Stock Exchange (LUSE: ZAMBEEF) listed Zambeef Plc recorded bullish half year headline earnings 360% stronger than a year ago exactly.
According to the half - year financial report released on June 5, 2018, the group recorded a...
By James Nyirenda
London Alternative Market (AIM: ZAM) and Lusaka Stock Exchange (LUSE: ZAMBEEF) listed Zambeef Plc recorded bullish half year headline earnings 360% stronger than a year ago exactly.
According to the half - year financial report released on June 5, 2018, the group recorded a profit after tax (excluding discontinued operations) of ZMW23million (USD2.3million) representing a 360% rally in earnings compared to same period a year ago when the entity recorded a ZMW5.2 million (USD0.5 million). Zambeef volumes and gross margins also widened in its core divisions of retail and cold chain food products (CCFP).
Zambeef ’s gross revenues rose 5.17% to ZMW1.22billion during the six-month period under review, from ZMW1.16billion in the prior corresponding period, according to its unaudited results.
Board Chairman Dr. Jacob Mwanza in a statement said, “I am pleased to say that this period of uncertainty appears to be behind us and 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.”
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.
Dr. Mwanza charged that Zambeef spent USD7.5million on capital investment for continuing operations in the first half of the year. USD2.9million was spent on the continued roll-out of new modern macro retail outlets across Zambia, with four (4) stores opened in the six months. The company plans to open a further four (4) macro retail outlets in the second half of the year. Heroes macro is the first of these and opened in the month of May 2018.
He also thanked Co-founder and former Joint Chief Executive Officer Dr. Carl Irwin, who retired from the Group on 31 March 2018 after 23 years of service, during which time he and Francis Grogan grew the company to the impressive heights it has reached today.
Zambia’s GDP is expected to grow by 5.1% in 2018. The clearance of government arrears and continued close attention to monetary policy conditions are likely to strengthen the position of the financial sector and spur confidence in consumption and investment lending. Equally, firm international copper prices and improved domestic production from newer and recently refurbished mines are expected to support exports.
“We expect this economic strengthening to continue to boost consumer demand across all sectors, with a firm trickle-down to our core target consumers in lower-income markets,” he cited.
Zambeef is the largest beef producer in Zambia. The company also provides feedlot services, and manufactures milk, chicken, eggs, leather and shoes. The company operates a fast food restaurant chain and a trucking company, including a fleet of refrigerated trucks. Zambeef grows crops, including wheat, maize, lucerne and soybeans, produces feed, and operates feed processing plants. Its subsidiaries include Master Meats Production Company, of Nigeria. The company's export business is active, especially throughout southern Africa.