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Zambeef announces record interim profit

Filed under: Business,Latest News |
Zambeef directors announce record interim results, from left, Company Secretary Danny Museteka, Joint Chief Executive Officers Carl Irwin and Francis Grogan, and chairman Jacob Mwanza

Zambeef directors announce record interim results, from left, Company Secretary Danny Museteka, Joint Chief Executive Officers Carl Irwin and Francis Grogan, and chairman Jacob Mwanza

Food processing Zambeef Products Plc has announced a record K101.7 million net profit after tax in its interim results for the six month period ended March 2016.

Operating profit increased threefold to K155.3 million from the previous K51.4 million in 2015 and group revenue increased by 70 percent to K1.122 billion from the previous K660 million in 2015.

Zambeef Joint Chief Executive Officers Dr Carl Irwin and Francis Grogan attributed the improved operational performance to the company’s growing cold chain division coupled with strict cost control and an aggressive expansion of its retail network, particularly with the success of its new macro outlets.

“This has been the highest recorded profit after tax for an interim result in the history of Zambeef. The company has seen significant growth over the past year by staying true to its core business of production, processing, distribution and retailing of its products. Our focus is to ensure that we keep the engine room that is our cold chain division running,” said Dr Irwin in announcing the results to shareholders in Lusaka tis week.

The growth of Zambeef’s cold chain division has been propelled by the introduction of its new macro-outlets model, which is proving to be a success in pulling customers. There are currently six such outlets with five planned for the remainder of the year and further additions in the future.

“The macro-outlets model has proven a success for Zambeef with customers appreciating the secure parking space, environment, and availability and presentation of our products,” said Mr Grogan.

The group continues to benefit from its concession agreement with Shoprite for in-store Meat Market butcheries in Zambia and West Africa. The supermarket has expanded with seven new stores in Zambia and West Africa and a further seven stores are due to open before the end of the year.

Zambeef has continued to invest in its operations with the K84 million Zamhatch breeder farm and new stockfeed facility set to eliminate supply bottlenecks in the egg, pork, beef and chicken divisions, and expanding the retail store network. Zambeef’s Novatek stockfeed division continues to grow with exports to Malawi, Zimbabwe, the DRC, Botswana and most recently Mozambique.

The food company’s cropping division experienced good yields, despite the delay in the start of the rainy season, with record yields on its soyabean crop; an indication of the quality of management of farming assets on the part of Zambeef, said Dr Irwin.

“Over all it has been a good six months with all divisions performing well, both in kwacha and volume terms. It a huge tribute to Zambeef staff in light of the challenges in the macro economics. We have a very committed staff dedicated to bring Zambeef forward,” he added.

Commenting on these results, Zambeef Board Chairman Dr Jacob Mwanza commented: “The excellent interim operating performance, achieved within a challenging macro-economic environment, is a tribute to the hard work, skill, dedication and professionalism of all management and staff. I would like to register our gratitude. Their efforts, driven by the board’s clear strategic focus, will enable Zambeef to achieve its vision of becoming a major provider of cold chain food products to Zambia and the region.

“With the strong focus on the retailing operations, Zambeef is confident that this robust performance will continue, demonstrating the resilience of the Group’s business model. As a consequence of this strong operational performance, the Board is confident of meeting full year expectations.”


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