9.5 C
Alba Iulia
Tuesday, September 22, 2020

Weak Kwacha to chop ZAMBEEF profits

Economy Weak Kwacha to chop ZAMBEEF profits

Zambeef trucks
Zambeef trucks

ZAMBEEF says the depreciation of the Kwacha is expected to impact negatively on the Group’s results.

ZAMBEEF also said that the recent electricity supply issues in Zambia have resulted in unforeseen generator running costs being incurred and additional operating challenges for the Group.

In a trading statement, the firm said in view of this, the Group expects US Dollar reported revenue for the year to 30 September 2015 to be lower than market expectations, largely because of the weakening of the Zambian Kwacha against the US Dollar.

It however said that the improvement in its gross profit margins will result in operating profits and net cash inflow from operating activities exceeding expectations.

It said this will, in turn, result in the Group’s expected US Dollar reported adjusted profit before tax being in line with market consensus.

Carl Irwin, Joint Chief Executive of Zambeef said, “In line with the Group’s strategy, it is pleasing to note that gearing has reduced significantly following the disposal of Zamanita Limited. Furthermore, driving the cold chain food products through the retail network will continue to be a key focus“.

It said continued management focus on the retailing division and the opening of additional retail stores have resulted in the cold chain food products division continuing to perform well.

‘The cropping division has also had a good year, with gross margins exceeding management’s expectations. The conclusion of the sale of Zamanita Limited to Cargill on 1 June 2015 resulted in a cash inflow to Zambeef of US$27.0 million and a substantial reduction in the Group’s indebtedness,’ it said.

1 COMMENT

  1. I like the your financial director who prepared this report for you. Mushota cannot write like this.

Comments are closed.

- Advertisement -
Loading...
- Advertisement -

Latest News

Zesco United End Lwandamina Affair

George Lwandamina and Zesco United have parted company. The relationship was ended on September 22 by mutual consent. “ZESCO United Football...

Broke: Zambia pushes to defer Eurobond interest payments for six months

Zambia has launched a vote with its Eurobond holders, proposing to defer interest payments on its three outstanding dollar-denominated bonds until April 14, 2021. Zambia...

Load shedding to Disappear-Minister of Energy

The government has assured that load shedding will be a thing of the past once the construction of all the power plants is completed. ...

ECZ Starts off with 16 000 Pre-Online Registrations

The Electoral Commission of Zambia (ECZ) says the pre-online registration has been successful so far receiving about 16, 000 applications after launching the process...

Sensitise Patrons Against Irresponsible Drinking, Bar Owners Told

The Ndola City Council and Zambian Breweries have signed a Memorandum of Understanding (MOU) to curb irresponsible alcohol consumption among Ndola citizens. Ndola Mayor,...

More Articles In This Category