Trading Statement
Zambeef Products Plc anticipates a significant improvement in its financial performance for the period ending March 31, 2026, with Total Basic Earnings per Share expected to be approximately 112% higher than the prior year, driven by robust operations, disciplined cost management, and the Kwacha's appreciation leading to savings on imported inputs. Despite revenue pressures and a challenging consumer environment, the company has benefited from stabilized electricity supply and a reduction in Zambia's Monetary Policy Rate to 13.25%. While macroeconomic improvements offer a positive outlook, Zambeef remains cautious about the latter half of the year due to potential geopolitical impacts on costs and upcoming elections, and is proactively adjusting its logistics and procurement to mitigate these risks.
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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 Zambian Kwacha Total Basic Earnings per Share* for the period ending 31 March 2026 is expected to be approximately 112% higher than that of the corresponding period ending 31 March 2025.
The Company reiterates the guidance provided in the Company's previous Trading Update of 14 May 2026, and therefore there is no change to the most recent market expectations as updated on 14 May 2026.
Despite pressure on revenues (in Kwacha), this improvement in financial performance is being underpinned by robust underlying operations and disciplined overhead management. Additionally, the Kwacha's appreciation at the turn of the calendar year has driven meaningful transactional cost savings on imported inputs. Consequently, the Group has achieved sustained growth in Operating Profit compared to the prior year-a trajectory that is expected to continue throughout the remainder of the financial year.
These results are further assisted by a reduction of Zambia's Monetary Policy Rate (MPR) from 14.5% earlier in the year, now down to 13.25%.
Having navigated the energy crisis in the early part of the financial year, the Group has benefited from a stabilisation in electricity supply, significantly reducing reliance on costly backup power. Despite a tough trading environment and weak consumer demand, macroeconomic improvements driven by Government policy measures support a positive outlook.
The Group continues to operate in a highly price-sensitive environment shaped by constrained consumer spending. While recent stability in inflation, GDP growth, and exchange rates has reinforced our ability to maintain competitive pricing profitably, we remain cautious regarding the latter half of the year. Beyond the impact of geopolitical tensions in the Middle East on fuel and fertilizer costs, the upcoming elections in August may introduce localized operational disruptions. Zambeef is proactively repositioning its logistics and procurement frameworks to mitigate these external pressures and safeguard profitability throughout the remainder of the financial year.
The Group expects its results for the period ending 31 March 2026 to be released by the end of June 2026. Shareholders are advised that the information contained in this Trading Statement has not been reviewed nor reported on by the Company's external auditors.
Note
Total Basic Earnings per Share calculation excludes the issue of new ordinary shares to British International Investment plc in April 2026, which occurred following the Interim Results balance sheet date of 31 March 2026. Earnings per Share on a fully diluted and adjusted basis for the year ending 30 September 2026 is expected to be ahead of the prior year (no change to guidance).
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