Zambeef Products Plc has reported a 56 percent rise in profit for the first half of its financial year, boosted by increased sales in its core meat business.
The agribusiness conglomerate made a profit of K75 million before interest, tax, depreciation and amortisation (EBITA) in the six months to March 31, 2015, up 56 percent compared with the same period of last year.
Zambeef attributed the rise in earnings to strong sales of its cold chain meat and dairy products and continued tight control of administrative costs. The rise in profit was despite a 22 percent depreciation of the kwacha against the US$ dollar during the period.
“Zambeef has taken a number of large steps forward. The financial performance is significantly up on the same period in the previous financial period while Zambeef also concluded the sale of its subsidiary company, Zamanita Ltd, in line with the strategic aim of unlocking value and capital gains from within the Group and reducing the dollar gearing of the business,” said chairman Dr Jacob Mwanza.
The company also reiterated its strategic priorities: to expand the production, processing, distribution and retailing of meat and dairy products in Zambia; unlock value and capital gains from within the group and reduce dollar debt and gearing; to forge strategic alliances and partnerships with acknowledged industry leaders; and to develop the business into a regional food supplier.
“With Zambeef operating in some of the fastest growing parts of the world where both populations are increasing and real incomes growing, the demand for food will continue to show strong growth.
Zambeef has a clear intention to be an important player in meeting this increased demand for food products. With the disposal of Zamanita, we are pleased that management will be able to pay increased focus on driving the core business of Zambeef, which is the production, processing, and distribution of cold chain meat and dairy products. In addition the disposal of Zamanita will reduce dollar gearing and hence make our earnings less susceptible to rapid exchange rate movements,” said Dr Mwanza.
Joint chief executive officers Carl Irwin and Francis Grogan told shareholders: “Increased focus on Zambeef’s core business, which is the processing, distribution and retailing of cold chain meat and dairy products, has seen strong growth in these business units. Looking at beef, chicken, pork, milk, eggs and fish combined the gross profit has increased by 48% (US$29%). This part of the business will remain a priority in terms of capital expenditure and management focus. New projects being worked on include a new processing and distribution hub in Kitwe as well as wholesale depots in Solwezi, Mongu, and Lusaka.
Zambeef also reported that the business was strongly cash generating with net cash inflow before financing increasing by 171 percent to ZMK61 million.
The new hatchery, breeder farm and stock feed plant being erected at Mpongwe Farm, as a joint venture with RCL Foods Ltd of South Africa, is progressing well. The first day old chicks will come on line in September 2015 and start at around 220,000 chicks per week increasing to 320,000 chicks per week over a 12 month period. The new stock feed plant should be operational before the end of the financial year. This project will take Zambeef’s chicken operations to a new level and the benefits from this will start flowing through during the 2016 financial year.
I love Zambeef. Such an inspiration for a would be farmer.
…while ZamPost is on a loss-making trajectory!
am following their model in starting up my business. this week i have spent substantial time in learning business. am in the process of ordering cows both for milk and meat
It is successful companies like Zambeef that are building blocks to a strong economy. To succeed a company needs the correct business model, correct long-term direction, competent board, competent management team, competent staff, strong systems (production, marketing, financial, etc) and a corporate culture that has embraced a Growth Mindset. Well done Zambeef!
Homework for Zampost!
I hope this company has stopped embalming people whilst they are still alive! We have not forgotten!
And to think that the Govt wanted to sink the company to get back at HH
It was Sata who was misled by the Cartel
What ever happened to the Zambeef saga?
Look at the empty Tins above supporting Zambeef blindly because their HH has shares in it.
Viva President Nawakwi.
Making profit,bt starving the workers..b glade u employ people who r so keen to have their jobs dat they r even scared to speak for what belongs to them..ma rubbish.long working hours n low pay ma rubbish
We need a comprehensive report on how Zambeef treats its workers and their living conditions. Plus what will they invest in next.
Viva President Nawakwi.
Lets not worry how Zambeef treats their workers. Lets first check how we treat our own workers. We have big mouths questioning how corporates and especially foreigners treat their workers. No minister or media jumps on Zambian businesses or employers because they know what they will find. A bakery or minibus operator in the compounds also has workers. Let not those in glass houses throw stones.
Jealousy is genetically inbred in us.
Well done Zambeef. Muzungu or not, congratulations are in order. Someday we hope we see a black operated company run like this.