Trading Update

("Zambeef: of the "Group") [Incorporated in the Republic of Zambia] Company registration number: 31824 Share Code: ZAMBEEF

Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana provides the following update on trading.

The Group now expects full financial year 2025 revenue and gross profit (reported in USD) to be approximately 10% and 3% below current market expectations respectively. This is due to both a weaker Zambian Kwacha expected for the period, and due to softer volume performance, driven by reduced consumer spending in an inflationary economic environment and the continued implementation of tight monetary policy by the central bank. As a result, reported profit before tax (reported in USD) is anticipated to be around 20% below current market expectations, also reflecting the weaker ZMW/USD reported earnings effect, revenue reduction and higher-than-expected financing costs. Despite this reduction against expectations, and a weaker earnings per share performance in the first half of this financial year (compared to the corresponding financial period ended 31 March 2024), reported profit before tax (reported in USD) for the full financial year ending 30 September 2025 is still expected to be ahead of the prior year.

For the half year ended 31 March 2025, the Group recorded a softer volume performance, but with growth achieved in key cold chain product categories. Overall performance fell short of expectations due to ongoing challenges in the operational and economic environment. These included tight monetary conditions aimed at curbing inflation, exchange rate volatility, the effects of the worst ever drought experienced (resulted in a power deficit and high commodity prices) and reduced government expenditure - all of which exerted pressure on disposable incomes.

The inflationary climate led to input price increases across the board. The Group was not able to fully pass on rising input costs to all our customers in all areas of our business, however, notably our Cropping business has achieved strong pricing, resulting overall in an increase to expectations for Group gross margin and EBIT margin for the full current financial year.

The current macroeconomic challenges are expected to continue through to the second half of the financial year. Although inflation is forecast to stabilize at a single digit, the exchange rate volatility is likely to continue. Despite the current outlook, we expect to drive strong production yields and continue to enhance profitability in the cropping space. In addition, improved rainfall is expected to stabilize electricity supply, which will slightly contribute to a more favorable economic outlook compared to the first half of the financial year.

The Group expects its results for the half year ended 31 March 2025 to be released by the end of June 2025. Shareholders are advised that the information contained in this Trading Update has not been reviewed nor reported on by the Company's external auditors.