Trading Update
Zambeef Products PLC anticipates its full-year revenue for the period ending September 30, 2026, to be approximately 20% below market expectations, with operating profit forecast to be around 4% lower, as part of a strategy to maintain affordability for consumers. Profit Before Tax and Profit After Tax are expected to be approximately 36% and 38% below market expectations respectively, due to both operating performance and increased finance costs, though still projected to be ahead of the prior year. The company has benefited from stabilised electricity supply and Kwacha appreciation, but remains cautious about potential risks from geopolitical tensions affecting input costs.
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Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana, provides the following trading update.
For the full financial year ending 30 September 2026, the Group expects Revenue (reported in USD) to be below market expectations by approximately 20%, as part of a strategy to continue to remain an affordable option for consumers. As a result, Operating Profit (USD) is now forecast to be below market expectations by approximately 4%. The revenue impact is mitigated somewhat by strong underlying operations and disciplined overhead management, with results further supported by favourable gains from the appreciation of the Zambian Kwacha (ZMW) against the US Dollar (USD).
Finance costs are now projected to be higher than market expectations, although this impact is somewhat reduced due to Zambia's Monetary Policy Rate moving from 14.5% to 13.5% in November 2025 and February 2026. Profit Before Tax (USD) and Profit After Tax (USD) are anticipated to be approximately 36% and 38% respectively below market expectations, due to both the operating performance, and the increased finance costs, both mentioned above. Whilst now expected to be below previous market expectations, the Company remains pleased to report that PBT and PAT for FY26 are still expected to be comfortably ahead of FY25.
After navigating the local energy crisis earlier in the financial year, the Group has now benefited from a stabilised electricity supply, significantly lowering its reliance on costly backup power. Additionally, the appreciation of the Kwacha at the beginning of the calendar year has resulted in substantial cost savings on imported inputs.
The Group continues to operate in a highly price-sensitive environment, impacted by limited consumer spending. Although recent stability in inflation, GDP growth, and exchange rates have helped us maintain competitive pricing while staying profitable, we remain cautious about the latter half of the financial year. There are potential risks, such as geopolitical tensions in the Middle East that are expected to continue affecting fuel and fertilizer costs. Zambeef is proactively adjusting its logistics and procurement strategies to mitigate these external pressures and protect profitability for the remainder of the financial year.
The Group expects its half-year results for the period ended 31 March 2026 to be released by the end of June 2026. Shareholders are advised that the information contained in this Trading Update has not been reviewed nor reported on by the Company's external auditors.
Issued in Lusaka, Zambia on 14 May 2026
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