Trading Statement

In accordance with the Lusaka Securities Exchange ("LuSE") Listings Requirements, the Board of Directors of Zambeef Products Plc (the "Company" or the "Group") hereby advises the shareholders of the Company that the Total Basic Earnings per Share for the half year ended 31 March 2025 is expected to be 43% lower than that of the corresponding financial period ended 31 March 2024.

The Company also reiterates the guidance provided in the Company's previous Trading Update of 7 May 2025, and therefore there is no change to the most recent market expectations as updated on 7 May 2025.

The decline in Total Basic Earnings per Share for the half is primarily attributed to a significant increase in financing costs, driven by the debt levels and an escalation in the monetary policy rate, as well as increased income tax charges. These factors eclipsed the growth in operating profit recorded during the period.

The growth in operating profit year on year was driven by a materially improved performance in cropping and the beef space in Q1 and Q2 respectively.

While the inflationary environment necessitated price adjustments in most categories, the Group was unable to fully pass on rising input costs to consumers, resulting in a margin squeeze and a decline in overall profitability in some segments.

Despite headwinds, the Group continued to execute its strategic priorities focused on revenue growth, cost efficiency, and volume expansion.

Looking ahead to the second half of the financial year, macroeconomic pressures are expected to persist although inflation is projected to stabilize.

On a more optimistic note, a forecast bumper harvest and improved summer crop yields will enhance the profitability of the Cropping division, while also injecting liquidity into the economy through increased earnings by small-scale farmers. Furthermore, improved rainfall is expected to support better electricity supply, offering a marginally improved economic outlook compared to the first half.

However, disease outbreaks remain an inherent and ongoing risk within the Group's livestock divisions, with the potential to materially impact profitability.

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 Statement has not been reviewed or reported on by the Company's external auditors.