Zambeef Products PLC Full Year Results

RNS Number : 5228P

Zambeef Products PLC

10 December 2024

 

 

 

Zambeef Products plc

("Zambeef" or the "Group")

 

Full-year results for the year ended 30 September 2024

 

Zambeef (AIM: ZAM), the fully integrated cold chain food products and retail business with operations in Zambia, Nigeria and Ghana, today announces its audited results for the year ended 30 September 2024.

 

Financial Highlights

Figures in 000's		2024	2023	%		2024	2023	%
		ZMW	ZMW			USD	USD
Revenue		7,315,845	6,046,157	21.0%		295,113	331,478		-11.0%
Change in fair value of biological assets		1,040,358	643,197	61.7%		41,967	35,263		19.0%
Cost of sales		(5,881,085)	(4,846,092)	21.4%		(237,237)	(265,685)		-10.7%
Gross profit		2,475,118	1,843,262	34.3%		99,843	101,056		-1.2%
Administrative expenses		(1,682,765)	(1,336,486)	25.9%		(67,881)	(73,272)		-7.4%
Distribution Expenses		(208,395)	(96,287)	116.4%		(8,406)	(5,279)		59.2%
Impairment of investment in associate		(34,370)	-	-100.0%		(1,386)	-		-100.0%
Net impairment losses on financial assets		(1,264)	(2,713)	-53.4%		(51)	(149)		-65.8%
Other income/(expenses)		(61,132)	(46,419)	31.7%		(2,466)	(2,545)		-3.1%
Operating profit		487,192	361,357	34.8%		19,653	19,811		-0.8%
Share of loss equity accounted investment		-	(2,595)	100.0%		-	(142)		100.0%
Net Finance costs and Income		(294,531)	(155,089)	89.9%		(11,881)	(8,503)		39.7%
Profit before taxation		192,661	203,673	-5.4%		7,772	11,166	-30.4%
Taxation charge		(12,565)	(72,851)	-82.7%		(507)	(3,994)	-83.8%
Group income for the year from continuing operations		180,096	130,822	37.7%		7,265	7,172	-0.7%
Profit/(Loss) from asset held for sale after tax		-	(10,604)	100.0%		-	(581)	100.0%
Group income for the period		180,096	120,218	49.8%		7,265	6,591	8.1%
EBITDA		732,657	554,662	32.1%		29,557	30,409	-2.8%
Gross Profit Margin		33.8%	30.5%			33.4%	30.5%
EBITDA Margin		10.0%	9.2%			9.5%	8.4%
Debt/Equity (Gearing)		41.8%	30.2%			41.8%	30.2%
Debt-To-EBITDA		2.8	2.5	11.0%		2.6	2.2	19.5%

 

PERFORMANCE OVERVIEW

 

The year ended 30 September 2024 saw the Group achieve revenue growth (in Kwacha and a decline in USD) with volume growth in key categories compared to the prior year, highlighting the Group's agility and adaptability in an ever-evolving market and economic landscape. The management team's relentless focus on optimizing top-line growth through effective revenue management, alongside rigorous cost control measures, has played a vital role in driving this performance success.

 

In a challenging operating and economic environment, the Company's relative successes underscore the strength of our organization's talent and the value of our enduring partnerships with customers, suppliers, and local communities. Reflecting on the period under review, it is evident that our focus on achieving commercial objectives, maintaining operational excellence, and driving cost optimization has propelled the business forward and strengthened our position across key sectors of operation.

 

The financial period saw considerable fluctuations in the Kwacha, with a depreciation of 26% against the USD. This volatility was driven by high USD demand, reduced mining activity, and sustained global interest rate hikes, impacting foreign investment in local bond auctions. Inflation closed the period at 15.6%, up from 12% the previous year, driven by currency depreciation and rising food and energy prices.

                                                                                                                                                                                                                              

The Group achieved a revenue of ZMW 7.3 billion (USD 295.1 million), accompanied by a gross profit of ZMW 2.5 billion (USD 99.8 million). This represents a year-on-year increase of 21% and 34% in kwacha terms, respectively, and a year-on-year decrease of 11% and 1% in US dollar terms respectively.

 

KEY FINANCIAL HIGHLIGHTS

 

The Group delivered a strong operating profit of ZMW 487.2 million (USD 19.7 million), reflecting a 35% increase in kwacha terms despite a marginal decline of 1% in US dollar terms compared to the prior year's ZMW 361.4 million (USD 19.8 million). This performance underscores the effectiveness of our cost optimization initiatives and the resilience of our operations amidst a challenging environment.

 

Volume growth was recorded across most divisions, driven by disciplined revenue management and the successful execution of sales and operational strategies, building on the momentum established at the mid-point of the financial year.

 

However, escalating costs of key inputs and commodities-such as fuel, imported materials, and grain-placed upward pressure on production costs across the Group. Additionally, interest expenses doubled, primarily due to increased debt to fund expansion activities, coupled with rising market interest rates.

 

The Group recorded a profit after tax of ZMW 180.1 million (USD 7.4 million) for the financial year, compared to ZMW 130.8 million (USD 7.2 million) in the previous financial year.

 

Despite these challenges, the Group remains steadfast in its commitment to delivering high-quality products, strengthening brand equity, and driving value creation. With a diversified and vertically integrated business model, strong brands, and a capable management team, we are well-positioned to capitalize on future opportunities and navigate potential risks with resilience and agility.

 

 

 

Commenting on these results, Chairman Mr. Patrick Wanjelani said:

 

"The financial year posed significant challenges, including high inflation and volatile exchange rates that affected operations from early in the period. While the government's engagement with international bondholders has advanced the debt restructuring process, underlying economic pressures continue to have an adverse effect on the business environment. Reduced copper mining activity and adverse climate conditions continuing to impact crop yields and energy generation, further stress the macroeconomic landscape."

 

"The several challenges experienced during the year such as the energy deficits led to rising costs of critical inputs like electricity, grain, and imported materials. The local currency depreciation and El Niño weather effects applied pressure on our margins during the financial year. The Central Bank's tightened monetary policy, aimed at curbing inflation, has further affected consumer spending as the cost of living continues to rise in the country."

 

"Despite the several challenges experienced, management continued to focus on its strategy of revenue maximization, volume growth, and cost optimisation. Through these concerted efforts, the Group achieved revenue growth over the prior year  (in Kwacha and a decline in USD), underscoring the resilience of our vertically integrated business model in delivering long-term value to our shareholders."

 

"The Group remains committed to delivering value to shareholders and is positioned to navigate potential business threats while capitalising on profitable opportunities."

 

Copies of Zambeef's Annual Report and Accounts for the year ended 30 September 2024 and Notice of AGM will shortly be sent to shareholders and made available on the Group's website and a further announcement will be made at this time.

 

For further information, please visit www.zambeefplc.com or contact:
Zambeef Products plc	Tel: [phone]
Faith Mukutu, Chief Executive Officer          Patrick Kalifungwa, Chief Financial Officer
Cavendish Capital Markets Ltd (Nominated Adviser and Broker)	Tel: [phone]
Ed Frisby/Abigail Kelly (Corporate Finance)
Tim Redfern (ECM)
Autus Securities Limited
Mataka Nkhoma, Sponsoring Broker                                                               Tel: [phone]     The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

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 246 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 10.4 million broilers and 26.6 million-day-old chicks a year. It is one of the largest pig abattoirs and pork processing plants in Zambia, with a capacity to slaughter 102,000 pigs a year, while its dairy has a capacity of 140,000 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. www.zambeefplc.com

 

 

 

 

 

CHAIRMAN'S REVIEW

 

Dear Shareholder,

As I present my inaugural report, I do so with a deep sense of responsibility and reflection, following the untimely passing of my predecessor, Mr. Michael Mundashi SC. His leadership, wisdom, and unwavering dedication to Zambeef Products Plc have left an enduring legacy that continues to inspire us all. Joining the Board and assuming the role of Chairman under such circumstances has been both a privilege and a profound reminder of the immense contributions he made to our organization.

While we mourn his loss, I am fully committed to honoring his vision and steering Zambeef forward with the same passion and purpose that defined his tenure. This report highlights our achievements, acknowledges the challenges we face, and reaffirms our dedication to securing a resilient and prosperous future for Zambeef.

The financial year posed significant challenges, including high inflation and volatile exchange rates that affected operations from early in the period. While the government's engagement with international bondholders has advanced the debt restructuring process, underlying economic pressures continue to have an adverse effect on the business environment. Reduced copper mining activity and adverse climate conditions continuing to impact crop yields and energy generation, further stress the macroeconomic landscape.

The several challenges experienced during the year such as the energy deficits led to rising costs of critical inputs like electricity, grain, and imported materials. The local currency depreciation and El Niño weather effects applied a lot pressure on our margins during the financial year. The Central Bank's tightened monetary policy, aimed at curbing inflation, has further affected consumer spending as the cost of living continues to rise in the country.

 

Despite the several challenges experienced, management continued to focus on its strategy of revenue maximization, volume growth, and cost optimisation. Through these concerted efforts, the Group achieved revenue growth over the prior year (in Zambian Kwacha and a decline in USD), underscoring the resilience of our vertically integrated business model in delivering long-term value to our shareholders.

 

Strategy

 

Despite the economic challenges, the Board remains steadfast in achieving Zambeef's strategic objectives. Our five-year roadmap is guided by four key pillars:

 

§ Strengthening our core business: We remain dedicated to strengthening our core business through targeted investments aimed at expanding our market share and consolidating our position in key sectors.

 

§ Human Capital Development: Our tailored human capital strategy ensures that our workforce is well-equipped to support the Group's success, with a focus on skills development aligned with our strategic goals.

 

§ Enhancing Strategic Partnerships: Strategic partnerships play a vital role in enhancing our competitive edge and market position. We are committed to strengthening these partnerships to capitalize on synergies and opportunities for growth. Our commitment to our customers, suppliers, lenders and other partners remains resolute.

 

§ Divestiture of Non-Core Assets: To optimize resource allocation, we are actively pursuing divestiture of non-core assets, allowing greater focus on our primary business areas.

 

We continue to make progress on our five-year, $100 million expansion plan announced in 2022. The Mpongwe Farm expansion has advanced substantially, with the first phase contributing significantly to production efficiency across the food value chain. The successful harvest of 9,460 metric tonnes of wheat in 2023 marked a key milestone in our operational capabilities.

 

During the year, we had the honour of hosting the Republican President, Mr. Hakainde Hichilema, who inaugurated the wheat flour milling plant, launched our first-ever winter maize harvest in Mpongwe, and joined us in celebrating Zambeef's 30th anniversary. Other notable project completions include the new hatchery and cheese plant, further diversifying our product offerings.

 

The Economic Environment

 

The financial period saw considerable fluctuations in the Kwacha, with a depreciation of 26% against the USD. This volatility was driven by high USD demand, reduced mining activity, and sustained global interest rate hikes, impacting foreign investment in local bond auctions. Inflation closed the period at 15.6%, up from 12% the previous year, driven by currency depreciation and rising food and energy prices.

 

Noteworthy was the resurgence in copper prices, which have seen an upward trend during the first half opening at USD 8,200/MT and closing at USD 10,129/MT, fuelled by the green energy transition. However, subdued production levels continued to impede the realization of full value, consequently impacting the economy's foreign exchange earnings potential. These dynamics underscore the delicate balance between global market forces and domestic production capacities.

 

 

Outlook

 

Looking ahead, we expect copper prices to continue their upward trend, bolstering foreign exchange earnings. However, the tight monetary policy and constrained government spending on food aid, following a poor crop season, could further strain consumer spending.

 

Zambeef's vertically integrated model and trusted brands position us well to seize emerging opportunities. We remain committed to navigating these complex conditions and reaffirm our commitment to long-term growth and sustainability.

 

British International Investment (BII) Partnership

 

16 September 2024 marked the eighth anniversary of British International Investment plc's (BII) investment in the Company. BII is the Company's largest ordinary shareholder with 52.6 million ordinary shares and 100,057,658 convertible redeemable preference shares ("Preference Shares") in Zambeef Products plc. The Company has the right to redeem all or part of the Preference Shares at the redemption price, which would give BII a 12% compounded annual return on their investment, subject to a minimum of USD 0.77 per share (less dividends received). However, the likelihood of such a repayment by the Company in this new financial year, or in the medium term, is currently considered by the Board to be uncertain. The eighth anniversary materially increased BII's conversion rights on their Preference Shares from one-for-one new ordinary share, to one for 3.0833 (recurring) new ordinary shares.

 

Acknowledgement

 

During the year, we announced the resignation of Mr. Roman Frenkel, Non-Executive Director, effective 9 April, 2024. Mr. Frenkel has been an integral part of our Board for the past three years, bringing insight and expertise that have enriched our deliberations and decisions.

 

We extend our heartfelt gratitude to Mr. Frenkel for his significant contributions to Zambeef Products Plc during his tenure. His dedication and strategic guidance have been invaluable, and we wish him continued success in all his future endeavours.

 

I am pleased to advise that on 1 August 2024, Mr Patrick Kalifungwa was appointed as the Chief Financial Officer and Executive Director of Zambeef Products Plc. He took over from Mr M'boo Mumba who resigned on 17th July 2024. I wish Mr Kalifungwa every success in his new role.

 

I am indebted to my fellow Board members for their devoted leadership throughout the year and I convey my sincere appreciation to our diligent management and staff for yet another year of commendable performance. The steadfast tenacity and fortitude shown in the face of challenges is a testament to the team. I take great pride in our collective achievements thus far and I am eager for the promising opportunities that will shape our future progress. Together, we will continue to build upon this foundation of success.

 

As we navigate the complexities of the current environment, we remain steadfast in our commitment to driving sustainable growth and delivering on our promises to our shareholders. Together, we will honour Mr. Mundashi's legacy by upholding the principles of excellence and integrity that he exemplified.

 

 

Patrick Wanjelani

Chairman

 

Chief Executive Officer's Report

 

Overview

 

The year ended 30 September 2024 saw the group achieve revenue growth (in Zambian Kwacha and a decline in USD) with volume growth in key categories compared to the prior year, highlighting our agility and adaptability in an ever-evolving market and economic landscape. Our management team's relentless focus on optimizing top-line growth through effective revenue management, alongside rigorous cost control measures, has played a vital role in driving our success.

 

Our relative successes in a difficult operating and economic environment serve as a testament to the exceptional talent within our organization and the enduring partnerships we have cultivated with our customers, suppliers, and local communities. As we reflect on the past period, it is clear that our unwavering dedication to commercial objectives, coupled with our commitment to operational excellence and cost optimization, has not only pushed us forward but also fortified our position in several sectors in which we operate.

 

Financial Performance

 

Despite operating within a challenging trading environment characterized by a countrywide energy crisis, subdued crop yields, constrained consumer spending and a tight monetary policy, the Group delivered robust results for the year ended 30 September 2024. Escalating costs of vital inputs and commodities, such as fuel, imported electricity, imported farming inputs and grain resulted in increased costs for our production divisions. However, the Group demonstrated volume growth across key categories, leveraging the momentum from the 2023 financial year. This was achieved through a meticulous approach to revenue management and effective sales and operational execution.

 

The Group achieved a revenue of ZMW 7.3 billion (USD 295.1 million), accompanied by a gross profit of ZMW 2.5 billion (USD 99.8 million). This represents a year-on-year increase of 21% and 34% in kwacha terms, respectively, and a year-on-year decrease of 11% and 1% in US dollar terms respectively.

 

Furthermore, the Group delivered an operating profit of ZMW 487.2 million (USD 19.7 million), marking an increase of 35% in kwacha terms and a decrease of 1% in US dollar terms compared to the prior year's ZMW 361.4 million (USD 19.8 million). This underscores the effectiveness of our commercial strategy and the successful execution of strategic expansion projects.

 

The Group remains steadfast in its commitment to fortifying its brand equity and providing customers with high-quality products. With our diversified and vertically integrated business model, robust brands, and effective management, we are well-positioned to capitalize on future opportunities and navigate potential threats with resilience and agility.

 

Strategic focus

 

Our strategic focus remains to optimise our existing asset utilisation, maximise return and drive profitability. We remain committed to our strategy of focussing on our core businesses, in which we strive to be the best in class. The continued investment in key strategic assets and divestiture of non-core assets will enable us to increase cash generation and profitability and therefore continue to deliver shareholder value. I am pleased to report that our $100 million medium-term expansion plans are proceeding as scheduled. We have maintained our dedication to enhancing capacity and efficiency in Cropping, Milling, Stockfeed, Dairy, and Poultry.

 

Our strategic focus in optimising costs and rationalising the Group's operations continued throughout the period.

 

Outlook

 

Looking ahead, our strong brand presence will continue to serve as a cornerstone in maintaining customer loyalty. Additionally, our vertically integrated business model positions us favourably, ensuring a dependable supply chain and market for our products. We anticipate a stabilization in the economic environment following the recent understanding reached by the government with international bondholders regarding debt restructuring, coupled with the expected upswing in copper production and prices over the medium to long term. With these factors in mind, the Group is well-positioned to capitalize on the opportunities arising from a positive economic outlook, strategically investing for the future in anticipation of an upturn in consumer spending.

 

Our ongoing commitment to consolidating our balance sheet through the disposal of non-core assets, optimising existing assets and the expansion of capacity remains a central focus. These measures are geared towards enhancing shareholder value, a goal we remain dedicated to achieving. By fortifying our financial foundation and strengthening our operational capabilities, we are poised for sustained growth and prosperity in the years ahead.

 

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

   

 

 

 

 

 

 

Retailing & Cold Chain Food Products

 

The financial year was marked with sales volume growth vs prior year, despite operating within a competitive and financially constrained environment. Our ability to retain and increase volumes was driven by meticulous sales execution and price optimization all of which had a direct impact on overall revenue growth.

 

The outbreak of the anthrax virus in the first half resulted in animal movement restrictions and diminished consumer confidence in Beef, leading to slowed volume growth. However, volumes surged in the second half, driven by a lower relative price of Beef following availability of standard beef category as farmers looked to offload cattle following the drought season owing to limited pasture. The accelerated volume turnaround in the Beef Division in the second half was helped by other protein sources which struggled with the impact of relatively higher feed costs. Beef consistently maintained a volume-based strategy, prioritizing market share recovery and competitive positioning over margin maximisation.

 

The first half of the year saw sluggish demand for chicken with gradual improvements in the second half due to variability in consumer spend. Demand for day-old chicks remained strong fuelled by small scale demand, and therefore contributed positively to the Poultry division's significant growth in profitability.

 

The Dairy segment profitability was negatively impacted by a significant increase in feeding costs, imported electricity costs and operational challenges in our Dairy farm.

 

Despite the challenges noted above, the division's gross profit grew by 20.9% in kwacha terms, with a decline of 11.1% in USD terms compared to the prior year.

 

Cropping and Milling

 

The Cropping segment performed well in spite of the drought related decline in yields when compared to prior year.  Despite the drought, high grain prices particularly for the Summer Crop helped enhance this position. The Cropping segment delivered a commendable operating profit performance compared to the previous year. In addition to the higher grain prices, efficiencies in input application helped negate the impact of lower yields. The business was able to mitigate the impact of load shedding on the irrigated winter crop through the contraction of imported power via a Power Supply Agreement with the Zambia Electricity Supply Corporation.

 

The stockfeed segment also experienced slightly higher volume growth than prior year supported by the newly installed pelleting capacity in Mpongwe despite a period of high pricing necessitated by the rising cost of inputs. The impact of pricing of Stockfeed did adversely affect the upstream value chain products.

 

The Flour segment experienced double-digit growth in volumes, attributed to the implementation of effective sales strategies and innovation which saw good demand for flour.

 

Acknowledgements

 

I would like to extend my gratitude to our Board of Directors for their guidance and support. I am also indebted, to all our dedicated staff and partners, for their invaluable contributions to the ongoing success of the Group.

 

Faith Mukutu

Chief Executive Officer

 

 

10 December 2024

 

Statement of profit or loss and other comprehensive income

 

	Notes	Group		Company
Continuing operations		2024	2023	2024	2023
		K'000	K'000	K'000	K'000
Revenue from contracts with customers	5(i)	7,315,845	6,046,157	6,939,511	3,384,408
Change in fair value of biological assets	16	1,040,358	643,197	933,588	568,975
Cost of sales of goods	7	(5,881,085)	(4,846,092)	(5,861,282)	(3,046,883)
Gross profit		2,475,118	1,843,262	2,011,817	906,500
Other (expenses)/income	6	(61,132)	(46,419)	(74,116)	(18,064)
Net impairment losses on financial assets	4(b)	(1,264)	(2,713)	1,802	(1,768)
Impairment of investment in associate	15	(34,370)	-	(34.370)	-
Distribution expenses	7	(208,395)	(96,287)	(190,771)	(1,302)
Administrative expenses	7	(1,682,765)	(1,336,486)	(1,431,766)	(741,469)
Operating profit		487,192	361,357	282,596	143,897
Net Finance costs and income	8	(294,531)	(155,089)	(294,188)	(123,921)
Share of loss from equity investment	15(ii)	-	(2,595)	-	(2,595)
Profit/(loss) before income tax		192,661	203,673	(11,592)	17,381
Income tax expense - continuing operations	10	(12,565)	(72,851)	14,748	(15,704)
Profit from continuing operations		180,096	130,822	3,156	1,677
Loss from discontinued operations after tax	20(i)	-	(10,604)	-	(10,604)
Profit/(loss) from continued and discontinued operations		180,096	120,218	3,156	(8,927)
Profit/(loss) attributable to:
Owners of Zambeef Products PLC		179,840	118,612	3,156	(8,927)
Non-controlling interests		256	1,606	-	-
		180,096	120,218	3,156	(8,927)
Other comprehensive income:
Items that maybe reclassified to profit or loss
Translation differences - foreign operations	22	(35,821)	(40,617)	-	-
Items not reclassified to profit or loss
Revaluation surplus	23	5,734	1,003,412	-	977,426
Actuarial remeasurement losses	26(i)	(2,523)	(768)	(2,523)	(425)
Deferred income tax	25	133,328	(98,516)	128,438	(97,751)
Other comprehensive income for the year		100,718	863,511	125,915	879,250
Total comprehensive income for the year		280,814	983,729	129,071	870,323

 

 

 

 

Statement of profit or loss and other comprehensive income (continued)

 

	Notes	Group		Company
		2024	2023	2024	2023
		K'000	K'000	K'000	K'000
Total comprehensive income for the year is attributable to:
Owners of Zambeef Products Plc		286,575	990,425	129,071	870,323
Non-controlling interests		(5,761)	(6,696)	-	-
		280,814	983,729	129,071	870,323
Basic earnings per share		Ngwee	Ngwee	Ngwee	Ngwee
Continuing operations	30	59.83	42.99	1.05	0.56
Discontinued operations	30	-	(3.53)	-	(3.53)
Total basic earnings per share		59.83	39.46	1.05	(2.97)
Diluted earnings per share
Continuing operations	30	44.89	32.25	0.79	0.42
Discontinued operations	30	-	(2.65)	-	(2.65)
Total diluted earnings per share		44.89	29.60	0.79	(2.23)

 

 

 

 

Consolidated Statement of financial position

		30-Sept-24	30-Sept-23
ASSETS	Notes	K'000	K'000
Non-current assets
Property, plant and equipment	12	5,577,265	4,818,533
Goodwill	14	25,015	25,015
Investment in associate	16(ii)	-	34,370
Biological assets	17(i)	143,972	123,359
		5,746,252	5,001,277
Current assets
Biological assets	17(i)	296,923	285,039
Inventories	18	2,088,778	1,656,487
Trade and other receivables	19	346,130	332,703
Cash and cash equivalents	20	334,415	271,222
Current assets excl assets classified as held for sale		3,066,246	2,545,451
Assets classified as held for sale	21(iii)	-	157,640
Total current assets		3,066,246	2,703,091
Total assets		8,812,498	7,704,368
EQUITY
Share capital	22	3,006	3,006
Share premium	22	1,125,012	1,125,012
Preference share capital	22	1,000	1,000
Foreign currency translation reserve	23	633,440	660,390
Revaluation reserve	24	2,054,090	1,964,087
Retained earnings		1,156,637	930,261
Attributable to owners of parent entity		4,973,185	4,683,756
Non-controlling interests (NCI)		(15,245)	(6,630)
		4,957,940	4,677,126
LIABILITIES
Non-current liabilities
Lease liabilities	13(a)	13,350	15,622
Borrowings	25	856,362	687,679
Deferred income tax	26	154,586	302,017
Defined benefit obligations	27(i)	1,835	1,631
		1,026,133	1,006,949
Current liabilities
Lease liabilities	13(a)	8,578	6,448
Borrowings	25	1,525,671	972,827
Trade and other payables	28	917,674	834,191
Contract liabilities	29	357,999	164,063
Current income tax	11(ii)	18,503	42,764
		2,828,425	2,020,293
Total equity and liabilities		8,812,498	7,704,368

 

 

Consolidated statement of changes in equity

 

	Share Capital	Share premium	Preference share capital	Foreign currency translation reserve	Revaluation reserve	Retained earnings	Total attributable to owners of parent entity	Non-controlling interests	Total
Year ended 30 September 2023	K'000	K'000	K'000	K'000	K'000	K'000	K'000	K'000
At start of year	3,006	1,125,012	1,000	692,705	1,113,119	758,489	3,693,331	66	3,693,397
Profit for the year	-	-	-	-	-	118,612	118,612	1,606	120,218
Other comprehensive income:
Revaluation surplus	-	-	-	-	1,003,412	-	1,003,412	-	1,003,412
Transfer of excess depreciation	-	-	-	-	(53,928)	53,928	-	-	-
Actuarial remeasurement losses	-	-	-	-	-	(768)	(768)	-	(768)
Deferred income tax (Note 25)	-	-	-	-	(98,516)	-	(98,516)	-	(98,516)
Translation differences (Note 22)	-	-	-	(32,315)	-	-	(32,315)	(8,302)	(40,617)
	-	-	-	(32,315)	850,968	53,160	871,813	(8,302)	863,511
Total comprehensive income for the year	-	-	-	(32,315)	850,968	171,772	990,425	(6,696)	983,729
At end of year	3,006	1,125,012	1,000	660,390	1,964,087	930,261	4,683,756	(6,630)	4,677,126
Year ended 30 September 2024
At start of year	3,006	1,125,012	1,000	660,390	1,964,087	930,261	4,683,756	(6,630)	4,677,126
Profit for the year	-	-	-	-	-	179,840	179,840	256	180,096
Other comprehensive income:
Revaluation surplus	-	-	-	-	5,734	-	5,734	-	5,734
Transfer of excess depreciation	-	-	-	-	(49,059)	49,059	-	-	-
Actuarial remeasurement losses	-	-	-	-	-	(2,523)	(2,523)	-	(2,523)
Deferred income tax (Note 25)	-	-	-	-	133,328	-	133,328	-	133,328
Translation differences (Note 22)	-	-	-	(26,950)	-	-	(26,950)	(8,871)	(35,821)
	-	-	-	(26,950)	90,003	46,536	109,589	(8,871)	100,718
Total comprehensive income for the year	-	-	-	(26,950)	90,003	226,376	289,429	(8,615)	280,814
At year end	3,006	1,125,012	1,000	633,440	2,054,090	1,156,637	4,973,185	(15,245)	4,957,940

 

 

 

Statement of cash flows

		Group		Company
		2024	2023	2024	2023
	Notes	K'000	K'000	K'000	K'000
Cash generated from/(used in) operations	30(i)	556,107	404,081	246,182	28,330
Interest paid on borrowings	30(ii)	(211,132)	(44,646)	(211,132)	(44,646)
Interest paid on bank overdrafts	30(ii)	(118,669)	(87,323)	(118,669)	(57,471)
Interest paid on leases	30(ii)	(3,322)	(2,676)	(3,322)	(1,312)
Benefits paid	27(i)	(2,597)	(3,422)	(2,597)	(238)
Income tax paid	11(ii)	(49,036)	(88,323)	(28,209)	(34,233)
Net cash inflow/(outflow) from operating activities		171,351	177,691	(117,747)	(109,570)
Cash flows from investing activities
Purchase of property, plant and equipment	12	(815,281)	(817,295)	(538,147)	(504,998)
Proceeds from disposal assets		9,309	4,025	8,760	6,165
Net cash outflow from investing activities		(805,972)	(813,270)	(529,387)	(498,833)
Cash flows from financing activities
Proceeds from borrowings	30(ii)	1,369,057	916,396	1,369,057	916,396
Principal repayments of borrowings	30(ii)	(739,519)	(526,257)	(739,519)	(526,257)
Principal elements of lease payments	30(ii)	(7,441)	(7,319)	(7,441)	(6,016)
Net cash inflow from financing activities		622,097	382,820	622,097	384,123
Net decrease for the year		(12,524)	(252,759)	(25,037)	(224,280)
Movement in cash and cash equivalents
At start of year		(380,467)	(127,708)	(252,156)	(27,876)
Net decrease		(12,524)	(252,759)	(25,037)	(224,280)
Effects of exchange differences		5,126		11,898
Balances from business combination (note 35)		-	-	(164,222)	-
At year end	20	(387,865)	(380,467)	(429,517)	(252,156)

 

 

 

 

Extracted from the Supplementary Information within the 2024 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
	2024	2023	2024	2023
	US$'000	US$'000	US$'000	US$'000
Revenue from contracts with customers	295,113	331,478	279,932	185,549
Change in fair value of biological assets	40,574	35,263	36,267	31,194
Cost of sales of providing goods	(235,844)	(265,685)	(235,044)	(167,044)
Gross profit	99,843	101,056	81,155	49,699
Other income/(expenses)	(2,466)	(2,545)	(2,990)	(990)
Net impairment losses on financial assets	(51)	(149)	73	(97)
Impairment of investment in associate	(1,386)	-	(1,386)	-
Distribution expenses	(8,406)	(5,279)	(7,695)	(71)
Administrative expenses	(67,881)	(73,272)	(57,756)	(40,651)
Operating profit	19,653	19,811	11,401	7,890
+
Net finance income and costs	(11,881)	(8,503)	(11,867)	(6,794)
Share of loss from equity investment	-	(142)	-	(142)
Profit before income tax	7,772	11,166	(466)	954
Income tax expense	(407)	(3,994)	735	(861)
(Loss)/profit from continuing operation	7,365	7,172	269	93
Profit from asset held for sale	-	(581)	-	(581)
Profit for the year	7,365	6,591	269	(488)
Profit attributable to:
Owners of Zambeef Products PLC	7,355	6,503	269	(488)
Non-controlling interests	10	88	-	-
	7,365	6,591	269	(488)
Other comprehensive income:
Items that maybe reclassified to profit or loss
Translation losses on foreign operations	(1,445)	(2,227)	-	-
Translation losses on Mpongwe Farms	-	-	-	-
Items not reclassified to profit or loss
Revaluation surplus	231	55,012	-	53,587
Actuarial remeasurement losses	(102)	(42)	(102)	(23)
Deferred income tax	5,378	(5,401)	5,181	(5,359)
Other comprehensive income for the year	4,062	47,342	5,079	48,205
Total comprehensive income for the year	11,427	53,933	5,348	47,717

 

Statement of profit or loss and other comprehensive income (continued)

 

	Group		Company
	2024	2023	2024	2023
	US$'000	US$'000	US$'000	US$'000
Total comprehensive income for the period is attributable to:
Owners of Zambeef Products Plc	11,659	54,300	5,348	47,717
Non-controlling interests	(232)	(367)	-	-
	11,327	53,933	5,348	47,717
Basic earnings per share
Continued operations	2.41	2.36	0.09	0.03
Discontinued operations	-	(0.19)	-	(0.19)
Total basic earnings per share	2.41	2.17	0.09	(0.16)
Diluted earnings per share
Continued operations	1.81	1.77	0.07	0.02
Discontinued operations	-	(0.15)	-	(0.15)
Total diluted earnings per share	1.81	1.62	0.07	(0.13)

 

 

 

Consolidated statement of financial position

 

	30-Sept-24	30-Sept-23
ASSETS	US$'000	US$'000
Non-current assets
Property, plant and equipment	210,146	229,236
Goodwill	943	1,190
Investment in associate	-	1,635
Biological assets	5,425	5,869
	216,514	237,930
Current assets
Biological assets	11,188	13,560
Inventories	78,703	78,805
Trade and other receivables	13,042	15,828
Cash and cash equivalents	12,600	12,903
Current assets excl. assets classified as held for sale	115,533	121,096
Assets classified as held for sale	-	7,500
Total current assets	115,533	128,596
Total assets	332,047	366,526
EQUITY
Share capital	449	449
Share premium	185,095	185,095
Preference share capital	100	100
Foreign currency translation reserve	23,867	49,843
Revaluation reserve	77,395	51,360
Retained earnings	(99,522)	(64,023)
Attributable to owners of parent entity	187,384	222,824
Non-controlling interests	(574)	(315)
	186,810	222,509
LIBILITIES
Non-current liabilities
Borrowings	32,267	32,715
Lease liabilities	503	743
Deferred income tax	5,825	14,368
Defined benefit obligations	69	78
	38,664	47,904
Current liabilities
Borrowings	57,486	46,281
Lease liabilities	323	307
Trade and other payables	34,578	39,686
Contract liabilities	13,489	7,805
Current income tax	697	2,034
	106,573	96,113
Total equity and liabilities	332,047	366,526

 

 

 

Company statement of financial position

 

	30-Sept-24	30-Sept-23
ASSETS	US$'000	US$'000
Non-current assets
Property, plant and equipment	180,527	171,046
Right of use assets	-	-
Investment in subsidiaries	3,507	4,949
Investment in associate	-	1,635
Biological assets	5,425	5,869
	189,459	183,499
Current assets
Biological assets	8,244	11,056
Inventories	72,703	52,544
Trade and other receivables	17,795	60,771
Cash and cash equivalents	11,031	9,984
Current assets excl. assets classified as held for sale	109,773	134,355
Assets classified as held for sale	-	7,500
Total current assets	109,773	141,855
Total assets	299,232	325,354
EQUITY
Share capital	449	449
Share premium	185,095	185,095
Preference share capital	100	100
Foreign currency translation reserve	25,887	42,945
Revaluation reserve	69,619	65,256
Retained earnings	(134,556)	(96,968)
	146,594	196,877
LIABILITIES
Non-current liabilities
Lease liabilities	503	352
Borrowings	32,267	32,715
Deferred income tax	4,079	10,506
Defined benefit obligations	69	43
	36,918	43,616
Current liabilities
Lease liabilities	323	299
Borrowings	57,486	37,257
Trade and other payables	44,196	42,152
Contract liabilities	13,439	4,518
Current income tax	276	635
	115,720	84,861
Total equity and liabilities	299,232	325,354

 

 

 

 

 

 

 

 

 

 

Statement of cash flows

 

	Group		Company
	2024	2023	2024	2023
	$'000	$'000	$'000	$'000
Cash generated from/(used in) operations	22,433	22,154	9,931	1,553
Interest paid on borrowings	(8,517)	(2,448)	(8,517)	(2,448)
Interest paid on borrowings	(4,787)	(4,787)	(4,787)	(3,151)
Interest paid on leases	(134)	(147)	(134)	(72)
Benefits paid	(105)	(188)	(105)	(13)
Income tax paid	(1,978)	(4,842)	(1,138)	(1,877)
Net cash inflow/(outflow) from operating activities	6,912	9,742	(4,750)	(6,007)
Cash flows from investing activities
Purchase of property, plant and equipment	(32,887)	(44,808)	(21,708)	(27,686)
Proceeds from disposal assets	376	221	353	338
Net cash outflow from investing activities	(32,512)	(44,587)	(21,355)	(27,348)
Cash flows from financing activities
Proceeds from borrowings	55,226	50,241	55,226	50,241
Principal repayments of borrowings	(29,831)	(28,852)	(29,831)	(28,852)
Principal elements of lease payments	(300)	(401)	(300)	(330)
Net cash inflow from financing activities	25,095	20,988	25,095	21,059
Net increase/(decrease) for the year	(505)	(13,857)	(1,010)	(12,296)
Movement in cash and cash equivalents
At start of year	(18,100)	(8,083)	(11,996)	(1,764)
Net decrease	(505)	(13,857)	(1,010)	(12,296)
Effects of exchange rate changes on the balance of cash held in foreign currencies	3,991	3,840	3,447	2,064
Balances from business combination (note 34)		-	(6,625)
At year end	(14,614)	(18,100)	(16,184)	(11,996)

 

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