Final Results
FY24 revenue grew 21% in local currency to ZMW 7.3bn; profit after tax ZMW 180.1m, up 37.7% despite USD headwinds.
- Revenue ZMW 7,315.8m (prior ZMW 6,046.2m)
- Gross profit ZMW 2,475.1m (prior ZMW 1,843.3m)
- Operating profit ZMW 487.2m (prior ZMW 361.4m)
- Profit after tax ZMW 180.1m (prior ZMW 130.8m)
- EBITDA ZMW 732.7m (prior ZMW 554.7m)
- Debt-to-EBITDA 2.8x (prior 2.5x)
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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.
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: 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
Faith Mukutu
Chief Executive Officer
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 202 3 | 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 202 4 | |||||||||
| 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 | 6 33,440 | 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 | |||
|---|---|---|---|---|
| 202 4 | 202 3 | 202 4 | 202 3 | |
| 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 | 3 6,267 | 31,194 |
| Cost of sales of providing goods | (2 35,844) | (265, 685) | ( 235,044 ) | (167,044) |
| Gross profit | 99,843 | 101,0 56 | 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 ) | (7 3,272 ) | ( 57,756 ) | (4 0,651 ) |
| Operating profit | 19,653 | 1 9,811 | 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 | 11,1 66 | (466) | 954 |
| Income tax expense | ( 407 ) | (3,9 94 ) | 735 | ( 861 ) |
| (Loss)/profit from continuing operation | 7,365 | 7,1 72 | 269 | 93 |
| Profit from asset held for sale | - | (581) | - | (581) |
| Profit for the year | 7,365 | 6,5 91 | 269 | ( 488 ) |
| Profit attributable to: | ||||
| Owners of Zambeef Products PLC | 7,355 | 6, 503 | 269 | (488) |
| Non-controlling interests | 10 | 88 | - | - |
| 7,365 | 6,5 91 | 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$'000 | |
| Total comprehensive income for the period is attributable to: | ||||
| Owners of Zambeef Products Plc | 11,659 | 54,300 | 5,348 | 47,717 |
| Non-controlling interests | (232) | (367) | - | - |
| 11,327 | 53,933 | 5,348 | 47,717 | |
| Basic earnings per share | ||||
| Continued operations | 2.41 | 2.36 | 0.09 | 0.03 |
| Discontinued operations | - | (0.19) | - | (0.19) |
| Total basic earnings per share | 2.41 | 2.17 | 0.09 | (0.16) |
| Diluted earnings per share | ||||
| Continued operations | 1.81 | 1.77 | 0.07 | 0.02 |
| Discontinued operations | - | (0.15) | - | (0.15) |
| Total diluted earnings per share | 1.81 | 1.62 | 0.07 | (0.13) |
| Consolidated statement of financial position | ||||
| 30-Sept-2 4 | 30-Sept-2 3 | |||
| ASSETS | US$'000 | US$'000 | ||
| Non-current assets | ||||
| Property, plant and equipment | 210,146 | 229,236 | ||
| Goodwill | 943 | 1,190 | ||
| Investment in associate | - | 1,635 | ||
| Biological assets | 5 ,425 | 5,869 | ||
| 216,514 | 237,930 | |||
| Current assets | ||||
| Biological assets | 11,188 | 13,560 | ||
| Inventories | 78,703 | 78, 805 | ||
| Trade and other receivables | 1 3,042 | 15,828 | ||
| Cash and cash equivalents | 12,600 | 12,903 | ||
| Current assets excl. assets classified as held for sale | 115,533 | 121,096 | ||
| Assets classified as held for sale | - | 7,500 | ||
| Total current assets | 115,533 | 128, 596 | ||
| Total assets | 332,047 | 366,526 | ||
| EQUITY | ||||
| Share capital | 449 | 449 | ||
| Share premium | 185,095 | 185,095 | ||
| Preference share capital | 100 | 100 | ||
| Foreign currency translation reserve | 23,867 | 49,843 | ||
| Revaluation reserve | 77,395 | 51,360 | ||
| Retained earnings | (99,522 ) | (64,023) | ||
| Attributable to owners of parent entity | 187,384 | 222,8 24 | ||
| Non-controlling interests | ( 574 ) | (315) | ||
| 186,810 | 222,509 | |||
| LIBILITIES | ||||
| Non-current liabilities | ||||
| Borrowings | 32,267 | 32,715 | ||
| Lease liabilities | 503 | 743 | ||
| Deferred income tax | 5,825 | 14, 368 | ||
| Defined benefit obligations | 69 | 78 | ||
| 38,664 | 47,904 | |||
| Current liabilities | ||||
| Borrowings | 57,486 | 46,281 | ||
| Lease liabilities | 323 | 307 | ||
| Trade and other payables | 34,578 | 39,686 | ||
| Contract liabilities | 13,489 | 7,805 | ||
| Current income tax | 697 | 2,034 | ||
| 106,573 | 96,113 | |||
| Total equity and liabilities | 332,047 | 366,526 | ||
| Company statement of financial position | ||||
| 30-Sept-2 4 | 30-Sept-2 3 | |||
| ASSETS | US$'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 | 42,15 2 | ||
| 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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