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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Zambeef Products | AQSE:ZAM.GB | Aquis Stock Exchange | Ordinary Share | ZM0000000201 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 5.50 | 5.00 | 6.00 | 5.50 | 5.50 | 5.50 | 0.00 | 06:56:49 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2022 to Apr 2024
TIDMZAM
RNS Number : 6363I
Zambeef Products PLC
05 December 2022
Zambeef Products plc
("Zambeef", the "Company" or the "Group")
Full-year results for the year ended 30 September 2022
Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana, today announces its audited results for the year ended 30 September 2022.
Financial Highlights
Hot Features
Premium
Figures in 000's 2022 2021 % 2022 2021 %
ZMW ZMW USD USD
------------ ------------ ---------- ----------
Revenue 5,394,761 4,974,351 8% 314,014 235,528 33%
Cost of sales (3,761,575) (3,503,635) 7% (218,951) (165,891) 32%
Gross profit 1,633,186 1,470,716 11% 95,063 69,637 37%
Administrative expenses (1,234,271) (1,154,163) 7% (71,843) (54,648) 31%
Distribution Expenses (65,596) (66,848) -2% (3,818) (3,165) 21%
Impairment of goodwill (141,786) - 100% (8,253) - 100%
Net impairment losses
on financial assets (17,869) (3,306) 441% (1,040) (156) 564%
Operating profit 173,664 246,399 -30% 10,108 11,667 -34%
Share of loss equity
accounted investment (3,503) (3,358) 4% (204) (160) 28%
Net finance costs (114,997) (71,019) 62% (6,694) (3,363) 99%
Profit before taxation 55,164 172,022 -68% 3,210 8,145 -61%
Taxation charge (63,283) (31,953) 98% (3,684) (1,513) 143%
Group income for
the year from continuing
operations (8,119) 140,069 -106% (474) 6,481 -107%
Profit/(Loss) from
discontinued operations* 39,697 28,754 38% 2,311 1,364 70%
Group income for
the year 31,578 168,823 -81% 1,837 7,994 -77%
Normalised EBITDA** 514,791 456,619 13% 29,965 21,620 39%
Gross Profit Margin 30.27% 29.57% 30.27% 29.57%
EBITDA Margin 9.54% 9.18% 9.54% 9.18%
Debt/Equity (Gearing) 20.18% 19.39% 20.18% 19.39%
Debt-To-EBITDA 1.45 1.56 -7% 1.57 1.97 -20%
---------------------------- ------------ ------------ ------ ---------- ---------- ------
*Profit from discontinued operations relate to profits from the Chiawa farm assets that are currently held for held forsale
** Normalised EBITDA is defined as Earnings before interest, tax, depreciation, amortisation, fair value adjustments, loss from equity accounted investments, loss on disposal and net unrealised foreign exchange losses.
PERFORMANCE OVERVIEW
The financial year ended 30 September 2022 saw macroeconomic fundamentals stabilise. The exchange rate remained largely stable and the inflation rate steadily reduced. However, constrained consumer spending negatively impacted volume growth in our Retail and Cold Chain Food Products, particularly in the first half of the financial year. In addition, the period saw the outbreaks of animal diseases such as contagious bovine pleuropneumonia(CBPP) and african swine fever(ASF), which respectively impacted our beef and pork divisions.
Despite these headwinds, performance in Cropping, Milling, and Stockfeed enabled the Group to achieve normalised EBITDA** in line with market expectations. This was mainly due to high grain prices, market share gains, and cost containment. The Group's performance demonstrates its ability to remain resilient in the evolving market and illustrates the strengths of its vertically integrated business model which is key to creating sustainable long-term shareholder value.
Despite the myriad of country and global deterrents directly affecting the business, through resilient financial and operational performance, Zambeef established itself, once again, as a dependable asset for our shareholders.
The Group remains committed to its strategic imperatives of focussing on core business and divestment from non-core assets to free up resources. As such, the Group exited pig and layer farming during the financial year.
KEY FINANCIAL HIGHLIGHTS
Revenue and gross profit increased by 8.5% and 11% respectively, in Kwacha. The marginal top line growth was mainly on account of volume pressures in Retail and cold chain food products.
The period saw a rise in input commodity prices, particularly crude oil, fertilisers and grain, escalated as a consequence of the Russia - Ukraine conflict. The resultant increase in input costs in the Cold chain business was offset by higher grain prices in Cropping. The higher grain prices in Cropping coupled with strong margins in the Stockfeed business drove the Group's performance.
The Group delivered a profit before tax of ZMW55 million (USD3 million), representing a decline of 68% in Kwacha (61% in US dollar terms), compared to ZMW172 million (USD8 million) in the prior year. The above results posted are after the recognition of goodwill impairment amounting to ZMW141.8 million on the fair value of Zamchick Limited's asset. Adjusting for this non-cash impairment, the Group delivered a profit before tax of ZMW197 million (USD11.5 million) representing a growth of 15%.
A higher tax expense and goodwill impairment loss resulted in profit after tax being K31.5 million (2021: K168.8 million).
STRATEGY
The Board remains committed to achieving the Group's strategic priorities while navigating the seasonal market and economic challenges. The following are the pillars on which the five-year strategy is underpinned:
-- Focus and strengthen our core business by investing in capacity and growing market share
-- Divestiture of non-core assets to free up resources
-- Develop a human capital strategy that aligns with business objectives
-- Strengthen our strategic partnerships
-- Enhancement of shareholders' value
Copies of Zambeef's Annual Report and Accounts for the year ended 30 September 2022 and Notice of AGM are now being sent to those shareholders registered to receive hard copies, and will also shortly today be available on the Group's website. The AGM will be held virtually on Tuesday 27 December 2022 at 10:00 a.m. CAT. The Notice of AGM includes instructions for virtual attendance at the meeting.
For further information, please visit www.zambeefplc.com or
contact: Zambeef Products plc Tel: +260 (0) 211 369003
Faith Mukutu , Chief Executive Officer
M'boo Mumba, Chief Financial Officer
finnCap Ltd (Nominated Adviser Tel: +44 (0) 20 7220 0500
and Broker)
Ed Frisby/Abigail Kelly (Corporate
Finance)
Tim Redfern/Barney Hayward (ECM)
Autus Securities Limited Tel: +260 (0) 761 002
002
Mataka Nkhoma
About Zambeef Products PLC
Zambeef Products plc is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the region, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, fish, flour and stockfeed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana.
It has 236 retail outlets throughout Zambia and West Africa.
The Company is one of the largest suppliers of beef in Zambia. Five beef abattoirs and three feedlots are located throughout Zambia, with a capacity to slaughter 230,000 cattle a year. It is also one of the largest chicken producers in Zambia, with a capacity of 8.8m broilers and 22.4 million-day-old chicks a year. It is one of the largest piggeries, pig abattoirs and pork processing plants in Zambia, with a capacity to slaughter 75,000 pigs a year, while its dairy has a capacity of 120,000 litres per day.
The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 7,787 hectares of row crops under irrigation, which are planted twice a year, and a further 8,694 hectares of rainfed/dry-land crops available for planting each year.
CHAIRMAN'S REVIEW
Dear Shareholder,
I have the pleasure of presenting my report to you for the financial year ending 30(th) September 2022.
The financial year saw an improvement in economic sentiment following the successful holding of the general election in August 2021 and the peaceful transition of government. The Kwacha appreciated significantly and remained stable during the period. However, global economic headwinds contributed to the disruption of an otherwise positive trajectory for Zambia's macroeconomic environment. T he spill - over effects of the Covid -19 pandemic related supply disruptions on international trade , added layers of production complexities to the business as lead times for imported goods increased . C ommodity prices, particularly crude oil, fertilisers and grain, escalated as a result of the Russia - Ukraine conflict. In addition, the period saw the outbreak of animal diseases such as, the African Swine Fever and Contagious Bovine Pleuropneumonia (CBPP) which respectively impacted our pork and beef businesses.
Despite the headwinds, management worked tirelessly to keep the business performing by focusing on enhanced bio-security risk, cost management, revenue maximisation and market share growth. As a result, the business posted positive financial results and is well-positioned on the path to actualising its short to medium-term strategy.
The Group's performance demonstrates its ability to remain resilient in the evolving market and illustrates the strengths of its vertically integrated business model, which is key to creating sustainable long-term shareholder value.
Strategy
T he Group's medium-term strategy is centred around optimising existing assets and investing in capacity for the future. It is with this in mind that the Group announced a US$100 million expansion programme during the year. This investment strategy is expected to increase the Groups various value chain capacities, and deliver developmental impact to the Zambian economy through job creation, increased tax revenue and supporting ancillary businesses such as small-scale farmers and small to medium-sized businesses. The expansion is expected to double the Mpongwe Farm row cropping capacity, and also to deliver significantly improved production efficiency and capacity through the downstream food value chains. The first crop from the expanded cropping operations is expected to be planted in the 2023/2024 financial with capacity upgrades to milling and processing facilities being run in parallel.
As part of the $100m expansion plan, we remain committed to maintaining a responsible business by building on the Environmental, Social and Governance (ESG) agenda. Therefore, the investment will see an improvement in the Group's carbon footprint and livestock health and welfare.
As part of the divesture of non-core and low-returning assets, the Group exited from pig farming, pullet rearing and egg production during the year. Chiawa farm remains an asset held for sale. These divestitures will enable the business to focus on becoming best in class and improve the Group's profitability.
The Board remains committed to achieving the Group's strategic priorities while navigating the seasonal market and economic challenges. The following are the pillars on which the five-year strategy is underpinned:
-- Focus and strengthen our core business by investing in capacity and growing market share
-- Divestiture of non-core assets to free up resources
-- Develop a human capital strategy that aligns with business objectives
-- Strengthen our strategic partnerships
-- Enhancement of shareholders' value
The Economic Environment
Despite the year 2022 being the second year since the outbreak of Covid-19, its impact on the economy compared to the prior year reduced tremendously due to the success of governments vaccination campaigns and the public's adherence to public health measures.
The economy rallied in comparison to the corresponding period under review and saw stability in macroeconomic fundamentals. The ZMW/USD exchange rate averaged 17.18 down by 19% compared to 21.12 averaged in the previous corresponding period. The local currency has seen a steady appreciation since the start of the financial year despite moments of volatility. A tight monetary policy which saw the Monetary Policy Rate remain stable at 9%, relatively high copper prices and market confidence arising from the peaceful transition of power have been key in keeping the currency stable.
Inflation reduced significantly during the period under review, closing at 9.9% compared to 22.1% in the previous year. This drop came as a result of currency appreciation and a reduction in food inflation despite the escalation in diesel and petrol pump prices. Customers disposable income remained under stress as the effect of stable macroeconomic fundamentals had not yet fully trickled down to the consumers. Inflation for the period under review averaged 13.4% compared to 21.7% for the previous corresponding period.
Outlook
We anticipate macro-economic stability to continue, supported by improved investor sentiment leading to increased foreign direct investment. The Kwacha is also expected to remain stable across the 2023 financial year. The copper prices, which is a major foreign exchange earner for the country, is expected to stabilise at current levels as the worst effects of the manufacturing slowdown have tapered off. The inflation rate is expected to remain stable, although the outcome of the Russia - Ukrainian tensions could lead to further rises in global food and energy prices which still pose a risk of higher inflation locally. Of key concern is the emergence of escalating cost of funding as foreign currency liquidity migrates to the United States of America and the United Kingdom, where interest rates are rising.
Executive Management Changes
I am pleased to advise that on 1 July 2022, Ms Faith Mukutu was appointed Chief Executive Officer. She succeeded Mr Walter Roodt who served as Chief Executive Officer since January 2020. Mr Roodt will continue full-time with the Company focussing on Large livestock and Strategic Projects in an executive capacity to support the expansion programme referred to above. To ensure a smooth transition, Walter remained on the Board until 1(st) December, 2022.
The appointment of Faith represents the confidence the Board has in her ability to lead the business through the new phase. Since joining the Group in September 2019, as the Chief Financial Officer, Faith has been instrumental in driving the realisation of commercial value from our business having introduced a cost control culture, restructuring the group balance sheet and streamlining finance operations and reporting.
I am delighted that at the date of this report, the Board had announced the appointment of M'boo John Mumba as Chief Financial Officer, Mboo has also been appointed as an Executive Director of the Board.
M'boo takes on the role, following the promotion of Faith Mukutu, to Chief Executive Officer (CEO) on 1 July 2022. He joined the Zambeef Group in May 2020 as Project Manager before he took up the role of Group Head of Treasury and Administration. He has brought to the Company skills which combine industry, financial and banking experience of more than 16 years. His established professional background and valuable expertise is an asset to the Group.
Acknowledgement
On behalf of the Company and the Board, I would like to express my sincere gratitude to Messrs; Yollard Kachinda and Frank Braeken who resigned from the board on 14 April 2022 and 27 May 2022, respectively. Their dedication and contributions to the business during the period they served as Directors will be greatly missed. I am also indebted to Walter Roodt who, after his reassignment to a new role remained on the Board for a smooth transition. He has played a significant role in the Group and we all wish him all the very best in his new role.
I also thank my fellow board members for steering the Group through the year and positioning it for the next phase of growth. To our management and staff, I express my gratitude for another solid performance, dedicated efforts, and resilience in the face of challenges. I am proud of our achievements to date and I am excited by the potential opportunities upon which we will build our future progress.
Michael M Mundashi
Chairman
CHIEF EXECUTIVE OFFICER'S REVIEW
Overview
It is my pleasure to give my inaugural report as Chief Executive Officer, to you, our esteemed shareholders. I wish to thank the Board for their confidence in my abilities to lead your Company through the next exciting phase of our growth strategy. I also wish to thank Mr Walter Roodt, my predecessor, for steering the Group through the challenging times of the last two years.
Without a doubt, this was another challenging year characterised by a difficult trading environment driven largely by reduced consumer spending and increased production and input costs, despite the stabilisation of the macroeconomic environment. Notwithstanding the headwinds, the Group's results exceeded market expectations, particularly the outstanding performance in the Cropping and Milling division.
Pressure on volumes and margins in the Retail and Cold Chain Food Products (CCFP) division on the back of reduced consumer spending negatively impacted performance, particularly in the first half of the year. An increase in raw material input costs, such as soya beans, precipitated a rise in feed prices, which affected production costs in our livestock business. In addition, the outbreak of African Swine Fever, over six weeks in Lusaka and in other parts of the country, affected the pork business negatively. Further, the outbreak of Contagious Bovine Pleuropneumonia (CBPP), a disease affecting cattle negatively affected our Beef business; with a cost to Company of K20.7 million.
The second half of the year saw volume recovery in volumes in the Retail and CCFP segments driven by price moderation. This coupled with cost control, enabled a recovery from the subdued first-half year performance.
Despite the challenges noted above, the Group posted strong results during the year in line with expectations mainly due to buoyed performance in our Cropping and Milling division.
The Group delivered a profit before tax of ZMW55 million (USD3 million), representing a decline of 68% in Kwacha (61% in US dollar terms), compared to ZMW172 million (USD8 million) in the prior year. The above results posted are after the recognition of goodwill impairment amounting to ZMW142 million (USD8.3m) on the fair value of Zamchick Limited assets. Adjusting for this non-cash impairment, the Group delivered a profit before tax of ZMW197 million (USD11.5 million) representing a growth of 15%.
The Group generated revenue of ZMW5.4 billion (USD314 million) and achieved a gross profit of ZMW1.6 billion (USD95 million), representing 8% and 11% above the prior year in kwacha terms, and up by 33% and 37% in US dollars, respectively.
Our diversified and vertically integrated business with strong brands, supportive partners and an experienced management team helped deliver encouraging results.
Strategic focus
Our strategic focus is to optimise existing assets and invest in the future. We remain committed to our strategy of focussing on our core businesses, in which we strive to be the best in class. The continued divestiture of non-core assets enables us to free up cash to invest in core businesses and therefore, deliver shareholder value. As part of delivering on our strategic imperatives and as announced during the financial year under review, our $100M expansion strategy will see increased profitability in the medium to long term, thus delivering increased value to our shareholders and positively impacting the communities in which we operate. As of 30(th) September 2022, a total of $7.3m out the $100m expansion plan was either spent or committed by the business.
Outlook
Our strong brands will help us maintain customer loyalty while the vertically integrated business model positions us well to secure both supply and a market for our products. The anticipated future recovery in the economy and a strong management team have positioned us well for shareholder value maximisation in the coming years. The Group will capitalise on the positive economic outlook and invest for the future in anticipation of improved consumer spending.
The Russia-Ukraine conflict poses risks but at the same time presents opportunities for our business. The consequent rise in input costs such as fertiliser and energy could negatively impact our profitability while the rise in commodity prices, such as wheat and soya, will benefit our Cropping and Milling division. Higher soya and maize prices would translate into higher stock feed costs which would negatively impact the profitability of our Retail and Cold Chain Food products business.
Consolidating our balance sheet through disposals of low-returning assets and expanding capacity remains a key focus to enhance shareholder value. In the coming years, the Group is set to make significant strides in our US$100 million expansion program with the Cropping and Milling segment set for expansion in the 2022/2023 financial year.
Divisional Performance
Table 1 (ZMW) and Table 2 (USD) below provide a summary of the consolidated performance of the key business divisions reported at an operating profit level.
Table 1: Divisional financial summary in ZMW'000
Table 2: Divisional financial summary in USD'000
Taking the performance of each of our key business areas in turn:
Retail and Cold Chain Food Products (CCFP)
Sales volumes came under pressure on the back of reduced consumer spending on proteins and oils, resulting from the trading down to cheaper nutritional alternatives. A price moderation strategy across all protein categories led to volume recovery in the second half of the year. The period saw the outbreak of African Swine Fever in Lusaka and other Provinces, which resulted in our pork processing operation being shut down and consequently impacted operations during the period of the animal movement ban. The year also saw the outbreak of CBPP which negatively impacted our beef business. Chicken sales volumes struggled as the price of chicken products remained relatively high compared with other proteins due to sustained high stock feed prices.
Given the above challenges, the Retail and CCFP business registered a revenue decline of 4% compared to the prior year. Higher input prices, particularly feed and fuel, resulted in a reduction of gross profit by 13% from the prior year.
The Retail and CCFP division generated an EBIT margin of 2.8% which decreased by 6.6% from the previous financial year to ZMW88 million (2021: ZMW216 million) in Kwacha terms.
Cropping and Milling (Cropping, Stockfeed, and Wheat Milling)
The division registered strong results owing to growth in stock feed revenues and higher grain prices in Cropping, despite lower soya bean yields across the country due to sporadic rainfall patterns.
The stockfeed business registered good growth due to improved supply chain planning. The export ban that existed in the first quarter of the year impacted export sales with an increase in demand for feed being noticeable in the period after the lifting of the ban.
The Cropping business saw margins improve on the back of higher grain prices despite an escalation in input costs, particularly fertiliser.
Revenue in the Cropping and Milling division grew by 18% in Kwacha terms and 46% in USD terms, while the operating profit grew by 70% to ZMW 449 million (2021: ZMW265 million) and by over 100% to USD26 million (2021: USD13 million) in dollar terms.
Finally, I would like to thank our Board of Directors and all staff and partners of Zambeef for their contribution to the continued success of the Group. I look forward to what we will be able to achieve in the coming year as we continue to implement our growth strategy.
Faith Mukutu
Chief Executive Officer
Zambeef Products Plc and its Subsidiaries
Statement of profit or loss and other comprehensive income
Notes Group Company
2022 2021 2022 2021
K'000 K'000 K'000 K'000
Revenue from contracts with
customers 5(ii) 5,394,761 4,974,351 3,361,428 2,880,062
Change in fair value of biological
assets 16 349,462 828,361 338,052 545,343
Cost of sales of goods 7 (4,111,037) (4,331,996) (2,826,242) (2,630,914)
------------ ------------ ------------ ------------
Gross profit 1,633,186 1,470,716 873,238 794,491
Other income/(expenses) 6 2,491 (8,445) 17,325 (10,410)
Net impairment losses on financial
assets 4(b) (17,869) (3,306) (7,876) (1,188)
Impairment of goodwill 13 (141,786) - - -
Impairment of investment in
subsidiary 14(a) - - (141,786) -
Distribution expenses 7 (65,596) (66,848) (67,118) -
Administrative expenses 7 (1,236,762) (1,145,718) (658,635) (636,152)
------------ ------------ ------------ ------------
Operating profit 173,664 246,399 15,148 146,741
Share of loss from equity
investment 15(ii) (3,503) (3,358) (3,503) (3,358)
Finance income 8 3,541 45,897 3,534 56,792
Finance costs 8 (118,538) (116,916) (91,009) (84,980)
------------ ------------ ------------ ------------
Profit/(loss) before income
tax 55,164 172,022 (75,830) 115,195
Income tax expense - continuing
operations 10 (63,283) (31,953) (27,799) (12,600)
------------ ------------ ------------ ------------
(Loss)/profit from continuing
operations (8,119) 140,069 (103,629) 102,595
Profit from discontinued operations
after tax 20(i) 39,697 28,754 39,697 28,754
Profit/(loss) for the year 31,578 168,823 (63,932) 131,349
Profit/(loss) attributable
to:
Owners of Zambeef Products
PLC 29,152 167,980 (63,932) 131,349
Non-controlling interests 2,426 843 - -
------------ ------------ ------------ ------------
31,578 168,823 (63,932) 131,349
------------ ------------ ------------ ------------
Other comprehensive income:
Items that maybe reclassified
to profit or loss
Translation differences -
foreign operations 22 (16,320) (14,710) - -
Translation differences -
Mpongwe Farms 22 (10,847) (271,935) (10,847) (271,935)
Items not reclassified to
profit or loss
Revaluation surplus 23 - 192,403 - 40,125
Actuarial remeasurement losses 26(i) (3,150) (2,813) (1,058) (1,408)
Deferred income tax* 25 6,394 21,199 3,018 826
------------ ------------
Other comprehensive income
for the year (23,923) (75,856) (8,887) (232,392)
------------ ------------ ------------ ------------
Total comprehensive income
for the year 7,655 92,967 (72,819) (101,043)
============ ============ ============ ============
Zambeef Products Plc and its Subsidiaries
Statement of profit or loss and other comprehensive income
Notes Group Company
2022 2021 2022 2021
K'000 K'000 K'000 K'000
Total comprehensive income
for the period is attributable
to:
Owners of Zambeef Products
Plc 4,970 95,066 (72,819) (73,849)
Non-controlling interests 2,685 (2,099) - -
------- -------- --------- ---------
7,655 92,967 (72,819) (73,849)
------- -------- --------- ---------
Basic earnings per share Ngwee Ngwee Ngwee Ngwee
Continued operations 30 (3.51) 46.60 (34.46) 34.13
Discontinued operations 30 13.21 9.57 13.21 9.57
------- -------- --------- ---------
Total basic earnings per share 9.70 56.17 (21.25) 43.70
------- -------- --------- ---------
Diluted earnings per share
Continued operations 30 (2.63) 34.96 (25.85) 25.61
Discontinued operations 30 9.91 7.18 9.91 7.18
------- -------- --------- ---------
Total diluted earnings per
share 7.28 42.14 (15.94) 32.79
------- -------- --------- ---------
Zambeef Products Plc and its Subsidiaries
Consolidated Statement of financial position
30-Sept-22 Restated:30-Sept-21 Restated:1-Oct-20
ASSETS Notes K'000 K'000 K'000
Non-current assets
Property, plant and equipment 11 3,134,611 3,071,735 3,213,319
Right of use assets 12(a) 32,389 43,283 51,186
Goodwill 13 25,015 166,801 166,801
Investment in associate 15 36,965 40,468 43,826
Biological assets 16 86,592 71,365 62,380
----------- -------------------- ------------------
3,315,572 3,393,652 3,537,512
----------- -------------------- ------------------
Current assets
Biological assets 16 234,104 287,632 113,925
Inventories 17 1,441,912 1,197,846 1,103,640
Trade and other receivables 18 289,300 238,278 142,005
Cash and cash equivalents 19 223,972 201,539 111,136
Assets classified as held
for sale 20(iii) 170,091 170,550 175,654
Current income tax asset 10 - - 1,743
----------- -------------------- ------------------
2,359,379 2,095,845 1,648,103
----------- -------------------- ------------------
Total assets 5,674,951 5,489,497 5,185,615
=========== ==================== ==================
EQUITY
Share capital 21 3,006 3,006 3,006
Share premium 21 1,125,012 1,125,012 1,125,012
Preference share capital 21 1,000 1,000 1,000
Foreign currency translation
reserve 22 692,705 720,131 1,003,834
Revaluation reserve* 23 1,113,119 1,160,653 1,034,388
Retained earnings* 758,489 678,559 468,453
----------- -------------------- ------------------
Attributable to owners
of parent entity 3,693,331 3,688,361 3,635,693
Non-controlling interests
(NCI) 66 (2,619) (520)
----------- -------------------- ------------------
3,693,397 3,685,742 3,635,173
----------- -------------------- ------------------
LIBILITIES
Non-current liabilities
Lease liabilities 12(b) 12,597 7,253 19,750
Borrowings 24 426,222 195,555 190,218
Deferred income tax* 25 223,217 235,250 195,444
Defined benefit obligations 26 3,654 8,891 11,389
665,690 446,949 416,801
----------- -------------------- ------------------
Current liabilities
Lease liabilities 12(b) 5,046 12,418 23,259
Borrowings 24 525,325 700,913 674,944
Trade and other payables 27 649,573 514,205 337,766
Contract liabilities 28 97,400 119,206 97,672
Current income tax 10 38,520 10,064 -
----------- -------------------- ------------------
1,315,864 1,356,806 1,133,641
----------- -------------------- ------------------
Total equity and liabilities 5,674,951 5,489,497 5,185,615
=========== ==================== ==================
Zambeef Products Plc and its Subsidiaries
Company statement of financial position
30-Sept-22 Restated:30-Sept-21 Restated:1-Oct-20
ASSETS Notes K'000 K'000 K'000
Non-current assets
Property, plant and equipment 11 2,158,021 2,143,680 2,453,920
Right of use assets 12(a) 23,591 22,803 22,474
Investment in subsidiaries 14 104,020 245,807 245,807
Investment in associate 15 36,965 40,468 43,826
Biological assets 16 86,592 71,365 62,380
----------- -------------------- ------------------
2,409,189 2,524,123 2,828,407
----------- -------------------- ------------------
Current assets
Biological assets 16 183,061 236,583 77,121
Inventories 17 977,667 772,972 814,081
Trade and other receivables 18 786,517 872,256 1,370,672
Cash and cash equivalents 19 136,149 113,193 12,645
Assets classified as held
for sale 20(iii) 170,091 170,550 175,654
Current income tax asset 10 - 2,520 565
----------- -------------------- ------------------
2,253,485 2,168,074 2,450,738
----------- -------------------- ------------------
Total assets 4,662,674 4,692,197 5,279,145
=========== ==================== ==================
EQUITY
Share capital 21 3,006 3,006 3,006
Share premium 21 1,125,012 1,125,012 1,125,012
Preference share capital 21 1,000 1,000 1,000
Foreign currency translation
reserve 22 687,048 697,895 969,830
Revaluation reserve 23 712,279 739,522 745,684
Retained earnings 739,665 774,394 597,340
----------- -------------------- ------------------
3,268,010 3,340,829 3,441,872
----------- -------------------- ------------------
LIABILITIES
Non-current liabilities
Lease liabilities 12(b) 5,354 1,873 8,172
Borrowings 24 426,222 195,555 190,218
Deferred income tax 25 140,280 138,117 124,190
Defined benefit obligations 26 366 2,124 3,356
572,222 337,669 325,936
----------- -------------------- ------------------
Current liabilities
Lease liabilities 12(b) 4,878 6,597 14,461
Borrowings 24 337,669 517,126 497,721
Trade and other payables 27 367,814 395,491 906,879
Contract liabilities 28 97,400 94,485 92,276
Current income tax 10 14,681 - -
----------- -------------------- ------------------
822,442 1,013,699 1,511,337
----------- -------------------- ------------------
Total equity and liabilities 4,662,674 4,692,197 5,279,145
=========== ==================== ==================
Zambeef Products Plc and its Subsidiaries
Consolidated statement of changes in equity
Total
Foreign attributable
Preference currency to owners
Share Share share translation Revaluation Retained of parent Non-controlling
Capital premium capital reserve reserve earnings entity interests Total
Year ended 30 K'000 K'000 K'000 K'000 K'000 K'000 K'000 K'000
September
2021
As previously
presented 3,006 1,125,012 1,000 1,003,834 1,167,713 470,174 3,770,739 (520) 3,770,219
Correction of
error (Note
32) - - - - (133,325) (1,721) (135,046) - (135,046)
-------- ---------- ----------- ------------ ------------ --------- ------------- ---------------- ----------
At start of
year -
restated 3,006 1,125,012 1,000 1,003,834 1,034,388 468,453 3,635,693 (520) 3,635,173
Profit for the
year - - - - - 167,980 167,980 843 168,823
Other
comprehensive
income:
Revaluation
surplus - - - - 192,403 - 192,403 - 192,403
Transfer of
excess
depreciation - - - - (44,377) 44,377 - - -
Actuarial
remeasurement
losses - - - - - (2,813) (2,813) - (2,813)
Deferred
income tax
(Note
25) - - - - (21,761) 562 (21,199) - (21,199)
Translation
differences
(Note 22) - - - (283,703) - - (283,703) (2,942) (286,645)
-------- ---------- ----------- ------------ ------------ --------- ------------- ---------------- ----------
- - - (283,703) 126,265 42,126 (115,312) (2,942) (118,254)
-------- ---------- ----------- ------------ ------------ --------- ------------- ---------------- ----------
Total
comprehensive
income
for the year - - - (283,703) 126,265 210,106 52,668 (2,099) 50,569
At start of
year 3,006 1,125,012 1,000 720,131 1,160,653 678,559 3,688,361 (2,619) 3,685,742
======== ========== =========== ============ ============ ========= ============= ================ ==========
Year ended 30
September
2022
At start of
year 3,006 1,125,012 1,000 720,131 1,160,653 678,559 3,688,361 (2,619) 3,685,742
Profit for the
year - - - - - 29,152 29,152 2,426 31,578
Other
comprehensive
income:
Transfer of
excess
depreciation - - - - (53,928) 53,92g8 - - -
Actuarial
remeasurement
losses - - - - - (3,150) (3,150) - (3,150)
Deferred
income tax
(Note
25) - - - - 6,394 - 6,394 - 6,394
Translation
differences
(Note 22) - - - (27,426) - - (27,426) 259 (27,167)
-------- ---------- ----------- ------------ ------------ --------- ------------- ---------------- ----------
- - - (27,426) (47,534) 50,778 (24,182) 259 (23,923)
Total
comprehensive
income
for the year - - - (27,426) (47,534) 79,930 4,970 2,685 7,655
At year end 3,006 1,125,012 1,000 692,705 1,113,119 758,489 3,693,331 66 3,693,397
======== ========== =========== ============ ============ ========= ============= ================ ==========
Company statement of changes in equity
Foreign
currency
Share Share Preference translation Revaluation Retained
Capital premium share capital reserve reserve earnings Total
K'000 K'000 K'000 K'000 K'000 K'000
Year ended 30 September
2021
As previously presented 3,006 1,125,012 1,000 969,830 828,538 597,524 3,524,910
Correction of error
(Note 32) - - - - (82,854) (184) (83,038)
--------- ---------- --------------- ------------- ------------ ---------- ----------
At start of year -
restated 3,006 1,125,012 1,000 969,830 745,684 597,340 3,441,872
Profit for the year - - - - - 131,349 131,349
Other comprehensive
income:
Revaluation surplus - - - - 40,125 - 40,125
Transfer of excess
depreciation - - - - (46,972) 46,972 -
Actuarial remeasurement
losses - - - - - (1,408) (1,408)
Deferred income tax
(Note 25) - - - - 685 141 826
Translation losses on
Mpongwe
farms (Note 22) - - - (271,935) - - (271,935)
--------- ---------- --------------- ------------- ------------ ---------- ----------
- - - (271,935) (6,162) 45,705 (232,392)
--------- ---------- --------------- ------------- ------------ ---------- ----------
Total comprehensive
income for
the year - - - (271,935) (6,162) 177,054 (101,043)
--------- ---------- --------------- ------------- ------------ ---------- ----------
At start of year 3,006 1,125,012 1,000 697,895 739,522 774,394 3,340,829
========= ========== =============== ============= ============ ========== ==========
Year ended 30 September
2022
At start of year 3,006 1,125,012 1,000 697,895 739,522 774,394 3,340,829
Profit for the year - - - - - (63,932) (63,932)
Other comprehensive
income:
Transfer of excess
depreciation - - - - (30,155) 30,155 -
Actuarial remeasurement
losses - - - - - (1,058) (1,058)
Deferred income tax
(Note 25) - - - - 2,912 106 3,018
Translation losses on
Mpongwe
farms (Note 22) - - - (10,847) - - (10,847)
--------- ---------- --------------- ------------- ------------ ---------- ----------
- - - (10,847) (27,243) 29,203 (8,887)
Total comprehensive
income for
the year - - - (10,847) (27,243) (34,729) (72,819)
At year end 3,006 1,125,012 1,000 687,048 712,279 739,665 3,268,010
========= ========== =============== ============= ============ ========== ==========
Consolidated statement of cash flows
Group Company
2022 2021 2022 2021
Notes K'000 K'000 K'000 K'000
Cash generated from operations 29(i) 308,323 206,761 153,025 119,664
Interest paid on borrowings 29(ii) (53,473) (38,998) (53,473) (35,380)
Interest paid on leases 29(ii) (1,813) (3,268) (784) (1,634)
( 9,672
Benefits paid 26(i) ) (6,970) (3,247) (3,472)
(44,8 77 (9 ,828
Income tax paid 10 ) (4,734) ) (2,997)
----------
Net cash inflow from operating
activities 198,488 152,791 85,693 76,181
---------- ---------- ---------- ----------
Cash flows from investing
activities
Purchase of property, plant (22 2,135
and equipment 11 ) (103,051) (109,858) (37,394)
Proceeds from disposal assets 2,819 - - 124
----------
Net cash outflow from investing
activities (219,316) (103,051) (109,858) (37,270)
---------- ---------- ---------- ----------
Cash flows from financing
activities
Proceeds from borrowings 29(ii) 722,995 669,619 722,995 669,619
Principal repayments of borrowings 29(ii) (526,205) (740,611) (526,205) (740,611)
Principal elements of lease
payments 29(ii) (14,965) (30,879) (7,322) (14,163)
----------
Net cash in/(out)flow from
financing activities 181,825 (101,871) 189,46 8 (85,155)
---------- ---------- ---------- ----------
Net increase/(decrease) for
the year 160,997 (52,131) 165,303 (46,244)
---------- ---------- ---------- ----------
Movement in cash and cash
equivalents
At start of year (288,665) (236,909) (193,224) (158,177)
Net increase /(decrease) 160,997 (52,131) 1 65,303 (46,244)
Exchange differences (40) 375 45 11,197
----------
At year end 19 (127,708) (288,665) (27,876) (193,224)
========== ========== ========== ==========
Extracted from the Supplementary Information within the 2022 Annual Report. This information presented in USD does not form part of the Financial Statements and is therefore unaudited
Statement of profit or loss and other comprehensive income
Group Company
2022 2021 2022 2021
US$'000 US$'000 US$'000 US$'000
Revenue from contracts with
customers 314,014 235,528 195,659 136,367
Change in fair value of biological
assets 18,567 39,222 17,903 25,821
Cost of sales of providing
goods (237,518) (205,113) (162,734) (124,570)
---------- ---------- ---------- ----------
Gross profit 95,063 69,637 50,828 37,618
Other income/(expenses) 145 (400) 1,008 (493)
Net impairment losses on financial
assets (1,040) (556) (458) (56)
Impairment of goodwill (8,253) - (8,253) -
Distribution expenses (3,818) (3,165) (3,907) -
Administrative expenses (71,989) (54,248) (38,337) (30,121)
---------- ---------- ---------- ----------
Operating profit 10,108 11,667 881 6,948
Share of loss from equity
investment (204) (160) (204) (160)
Finance income 206 2,173 206 2,689
Finance costs (6,900) (5,536) (5,297) (4,024)
Profit before income tax 3,210 8,145 (4,414) 5,453
Income tax expense (3,684) (1,664) (1,618) (597)
---------- ---------- ---------- ----------
(Loss)/profit from continuing
operation (474) 6,481 (6,032) 4,858
Profit from asset held for
sale 2,311 1,513 2,311 1,360
---------- ---------- ---------- ----------
Profit for the year 1,837 7,994 (3,721) 6,218
Profit attributable to:
Owners of Zambeef Products
PLC 1,696 7,954 (3,721) 6,218
Non-controlling interests 141 40 - -
---------- ---------- ---------- ----------
1,837 7,994 (3,721) 6,218
---------- ---------- ---------- ----------
Other comprehensive income:
Items that maybe reclassified
to profit or loss
Translation losses on foreign
operations (946) (696) - -
Translation losses on Mpongwe
Farms (631) (12,876) (631) (12,876)
Items not reclassified to
profit or loss
Revaluation surplus - 9,110 - 1,900
Actuarial remeasurement losses (183) (133) (62) (67)
Deferred income tax 368 (1,004) 176 39
---------- ----------
Other comprehensive income
for the year (1,392) (5,599) (517) (11,004)
---------- ---------- ---------- ----------
Total comprehensive income
for the year 445 2,395 (4,238) (4,784)
========== ========== ========== ==========
Statement of profit or loss and other comprehensive income (continued)
Group Company
2022 2021 2022 2021
US$'000 US$'000 US$'000 US$'000
Total comprehensive income
for the period is attributable
to:
Owners of Zambeef Products
Plc 289 2,494 (4,238) (4,784)
Non-controlling interests 156 (99) - -
-------- -------- -------- --------
445 2,395 (4,238) (4,784)
-------- -------- -------- --------
Basic earnings per share
Continued operations (0.19) 2.14 (2.01) 1.57
Discontinued operations 0.77 0.50 0.77 0.50
-------- -------- -------- --------
Total basic earnings per share 0.58 2.64 (1.24) 2.07
-------- -------- -------- --------
Diluted earnings per share
Continued operations (0.15) 1.61 (1.50) 1.17
Discontinued operations 0.58 0.38 0.58 0.38
-------- -------- -------- --------
Total diluted earnings per
share 0.43 1.99 (0.92) 1.55
-------- -------- -------- --------
Consolidated statement of financial position
30-Sept-22 Restated:1-Oct-21 Restated:1-Oct-20
ASSETS US$'000 US$'000 US$'000
Non-current assets
Property, plant and equipment 198,393 183,497 159,549
Right of use assets 2,050 2,586 2,542
Goodwill 1,583 9,964 8,282
Investment in associate 2,340 2,417 2,176
Biological assets 5,480 4,263 3,097
----------- ------------------ ------------------
209,846 202,727 175,646
----------- ------------------ ------------------
Current assets
Biological assets 14,817 17,182 5,657
Inventories 91,260 71,556 54,798
Trade and other receivables 18,310 14,235 7,052
Cash and cash equivalents 14,175 12,039 5,518
Assets classified as held
for sale 10,765 10,188 8,722
Current income tax asset - - 87
----------- ------------------ ------------------
149,327 125,200 81,834
----------- ------------------ ------------------
Total assets 359,173 327,927 257,480
=========== ================== ==================
EQUITY
Share capital 449 449 449
Share premium 185,095 185,095 185,095
Preference share capital 100 100 100
Foreign currency translation
reserve 42,945 38,850 45,027
Revaluation reserve 65,256 69,334 51,360
Retained earnings (60,091) (77,664) (106,325)
----------- ------------------ ------------------
Attributable to owners
of parent entity 233,754 216,164 175,706
Non-controlling interests 4 (156) (26)
----------- ------------------ ------------------
233,758 216,008 175,680
----------- ------------------ ------------------
LIBILITIES
Non-current liabilities
Borrowings 26,976 11,682 9,445
Lease liabilities 797 433 981
Deferred income tax 14,128 18,222 14,520
Defined benefit obligations 231 531 565
42,132 30,868 25,511
----------- ------------------ ------------------
Current liabilities
Borrowings 33,248 41,871 33,513
Lease liabilities 319 742 1,155
Trade and other payables 41,113 30,716 16,771
Contract liabilities 6,165 7,121 4,850
Current income tax 2,438 601 -
----------- ------------------ ------------------
83,283 81,051 56,289
----------- ------------------ ------------------
Total equity and liabilities 359,173 327,927 257,480
=========== ================== ==================
Company statement of financial position
30-Sept-22 Restated:1-Oct-21 Restated:1-Oct-20
ASSETS US$'000 US$'000 US$'000
Non-current assets
Property, plant and equipment 136,584 128,057 121,843
Right of use assets 1,493 1,362 1,116
Investment in subsidiaries 6,584 14,684 12,205
Investment in associate 2,340 2,417 2,176
Biological assets 5,481 4,263 3,097
----------- ------------------ ------------------
152,482 150,783 140,437
----------- ------------------ ------------------
Current assets
Biological assets 11,586 14,133 3,829
Inventories 61,878 46,175 40,421
Trade and other receivables 49,780 52,107 68,057
Cash and cash equivalents 8,617 6,762 628
Assets classified as held
for sale 10,765 10,188 8,722
Current income tax asset - 151 28
----------- ------------------ ------------------
142,626 129,516 121,685
----------- ------------------ ------------------
Total assets 295,108 280,299 262,122
=========== ================== ==================
EQUITY
Share capital 449 449 449
Share premium 185,095 185,095 185,095
Preference share capital 100 100 100
Foreign currency translation
reserve 39,096 37,521 43,339
Revaluation reserve 45,081 44,177 37,025
Retained earnings (62,986) (71,939) (99,926)
----------- ------------------ ------------------
206,835 195,403 166,082
----------- ------------------ ------------------
LIBILITIES
Non-current liabilities
Lease liabilities 339 112 406
Borrowings 26,976 11,682 9,445
Deferred income tax 8,879 12,420 10,982
Defined benefit obligations 23 126 166
36,217 24,340 20,999
----------- ------------------ ------------------
Current liabilities
Lease liabilities 309 394 718
Borrowings 21,371 30,892 24,713
Trade and other payables 23,282 23,626 45,028
Contract liabilities 6,165 5,644 4,582
Current income tax 929 - -
----------- ------------------ ------------------
52,056 60,556 75,041
----------- ------------------ ------------------
Total equity and liabilities 295,108 280,299 262,122
=========== ================== ==================
Consolidated statement of cash flows
Group Company
2022 2021 2022 2021
$'000 $'000 $'000 $'000
Cash generated from operations 17,947 9,790 8,907 5,666
Interest paid on borrowings (3,113) (1,846) (3,113) (1,675)
Interest paid on leases (106) (155) (46) (77)
Benefits paid (563) (330) (189) (164)
Income tax paid (2,612) (224) (572) (142)
----------
Net cash inflow from operating
activities 11,553 7,234 4,988 3,607
---------- ---------- ---------- ----------
Cash flows from investing
activities
Purchase of property, plant
and equipment (12,930) (4,879) (6,395) (1,771)
Proceeds from disposal assets 164 - - 6
----------
Net cash outflow from investing
activities (12,766) (4,879) (6,395) (1,765)
---------- ---------- ---------- ----------
Cash flows from financing
activities
Proceeds from borrowings 42,084 31,705 42,084 31,705
Principal repayments of borrowings (30,629) (35,067) (30,629) (35,067)
Principal elements of lease
payments (871) (1,462) (426) (671)
----------
Net cash in/(out)flow from
financing activities 10,584 (4,823) 11,028 (4,032)
---------- ---------- ---------- ----------
Net increase/(decrease) for
the year 9,371 (2,468) 9,622 (2,190)
---------- ---------- ---------- ----------
Movement in cash and cash
equivalents
At start of year (17,244) (11,763) (11,543) (7,854)
Net increase /(decrease) 9,371 (2,468) 9,622 (2,190)
Exchange differences (15,956) (3,013) 3,685 (1,499)
----------
At year end (7,434) (17,244) (1,764) (11,543)
========== ========== ========== ==========
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December 05, 2022 10:00 ET (15:00 GMT)
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