LUSAKA - Zambeef Products Plc, a prominent agribusiness and food processing company in Zambia, has announced an expected 48.7% increase in total basic earnings per share for the financial year ended September 30, 2024, in comparison to the previous year. Despite a difficult economic climate marked by a severe drought, reduced consumer spending, and stringent monetary policy, the company has reported profitability growth in Zambian Kwacha terms.
The company's performance has been resilient, overcoming a host of challenges including Anthrax outbreaks that hampered cattle movement and adversely affected beef volumes in the initial quarter. However, subsequent lifting of movement bans led to a recovery in beef volumes from the second to the fourth quarter.
Zambia's reliance on hydropower, which contributes 85% to its electricity supply, faced a setback due to diminished water levels, prompting the government to implement a load management program and resort to more costly alternative energy sources. This, along with a depreciating local currency and an inflation rate that rose to an average of 15.6%, significantly increased Zambeef's input and overhead costs.
Despite these hurdles, Zambeef has maintained a focus on its core strategy of enhancing revenue, optimizing costs, and growing volumes. The company remains one of the largest suppliers of beef, chicken, pork, and dairy products in Zambia, with extensive operations in crop production and a widespread retail network across Zambia and West Africa.
The full financial results for the year are expected to be released in early December 2024. Shareholders have been advised that the information in this trading statement has not been reviewed or reported on by the company's external auditors. This announcement is based on a press release statement from Zambeef Products Plc.
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