RNS Number : 0202U
Zambeef Products PLC
30 November 2021
 

 

Zambeef Products plc

("Zambeef" or the "Group")

 

Full-year results for the year ended 30 September 2021

 

Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria  and Ghana, today announces its audited results for the year ended 30 September 2021.

 

Financial Highlights

Figures in 000's

 

2021

2020

%

 

2021

2020

%

 

 

ZMW

ZMW

 

USD

USD

Revenue

 

4,974,351

3,875,104

28%

 

235,528

239,648

-2%

Cost of sales

 

(3,503,635)

(2,659,482)

32%

 

(165,892)

(164,470)

1%

Gross profit

 

1,470,716

1,215,622

21%

 

69,636

75,178

-7%

Administrative expenses

 

(1,150,658)

(945,198)

22%

 

(54,482)

(58,454)

-7%

Distribution costs

 

(66,848)

(66,770)

0%

 

(3,165)

(4,129)

-23%

Other income

 

14,120

6,877

105%

 

669

425

57%

Operating profit

 

267,330

210,531

27%

 

12,658

13,020

-3%

Finance costs

 

(115,282)

(92,322)

25%

 

(5,458)

(5,709)

-4%

Exchange gains/(losses)

 

23,332

(137,705)

117%

 

1,105

(8,516)

-113%

Share of loss equity accounted investment

 

(3,358)

(3,177)

6%

 

(159)

(197)

-19%

Profit from assets held for sale

 

31,949

-

100%

 

1,513

-

100%

Profit/(loss) before taxation

 

203,971

(22,673)

1,000%

 

9,658

(1,402)

789%

Taxation charge

 

(35,148)

(112,957)

69%

 

(1,664)

(6,986)

76%

Group income for the year from continuing operations

 

168,823

(135,630)

224%

 

7,995

(8,388)

195%

Profit from discontinued operations

 

-

33,435

-100%

 

-

2,068

-100%

Group income/(loss) for the year

 

168,823

(102,195)

265%

 

7,995

(6,320)

226%

 

 

 

 

 

 

 

 

 

EBITDA*

 

456,771

415,405

10%

 

21,627

25,689

-16%

Gross Profit Margin

 

29.57%

31.37%

 

 

29.57%

31.37%

 

EBITDA* Margin

 

9.18%

10.72%

 

 

8.75%

9.08%

 

Debt/Equity (Gearing)

 

18.59%

21.14%

 

 

18.59%

21.14%

 

Debt-To-EBITDA*

 

1.56

1.92

-19%

 

1.97

1.54

28%

                   

 

*EBITDA is defined as Earnings before interest, tax, depreciation, amortisation, fair value adjustments, loss from equity accounted investments, loss on disposal and net unrealised foreign exchange losses.

 

PERFORMANCE OVERVIEW

Despite the rising input costs and global food prices, the difficult operating environment as a result of the 2020 economic and Covid-19 related uncertainties, the sustained consumer demand for the Groups products has driven positive full year performance. The macroeconomic fundamentals remained relatively stable during the financial year in the context of the previous comparative year. The local currency depreciated at a much slower rate in the first half and experienced steep appreciation in the second half. Increased consumer spending stemming from the Covid-19 economic stimulus package resulted in increased demand for our products. The good rainfall season experienced during the summer increased the supply of hydroelectric power to the nation, which helped alleviate the load shedding situation, thus positively impacting on the financial performance. The strength, resilience and agility of our business can be seen through the strong financial performance.

 

The Group generated an operating profit, including profit from asset held for sale, of ZMW299.3 million (USD14.1 million) compared to ZMW212.1 million (USD13.1million) in the prior financial year. The operating profit excluding profit from asset held for sale was ZMW267.3million (USD12.7 million) compared to ZMW210.5 million (USD13.0 million) achieved in the previous financial year. Profit before tax was ZMW203.9 million (USD9.7 million) compared to a loss before tax of ZMW22.7 million (USD1.4 million) achieved in the prior financial year. The Group's performance in the face of headwinds illustrates the strengths of its vertically integrated business model, the strength of its brands and management team.

                                                                                                                                                                                                                                                                                                                                                  

KEY FINANCIAL HIGHLIGHTS

Revenue and gross profit increased by 28% and 21% respectively in Kwacha terms for the Group due to the focus on revenue optimisation across most product lines. However due to the depreciation of the Zambian kwacha, the metrics in USD reduced by 2% and 7% respectively in comparison to 2020.

 

Despite an inflationary environment, management's continued focus on cost control measures ensured administration and distribution expenses were contained within inflationary levels and only increased by 20% (Inflation averaged 21.7% for the period) from ZMW1 billion in the previous corresponding period to ZMW1.2 billion in the period under review.

 

Finance costs reduced by 4.4% in USD following repayments of principal amounts on long term loans. During the period under review, management took steps to restructure the Company's debt profile by replacing USD debt with Kwacha debt to match the debt profile to the revenue profile and thus reduce foreign exchange risk, which should help provide predictability to the bottom line going forward. The USD to ZMW debt mix now stands at 15%:85% compared to 80%:20% at the end of the previous financial year. The Group benefited from the Central Bank's Covid-19 relief fund with favourable interest rates.

 

The operating profit performance and the recorded exchange gains during the financial year resulted in a profit after tax of ZMW169 million (USD 8.0 million) for 2021 compared to a loss after tax of ZMW102 million (USD6.3 million) in the previous period.

 

Zambeef's management remains committed to implementing the five year business strategy which is underpinned by the following pillars:

 

§ Focus on and strengthen our core business by investing in capacity and grow market share

§ Divestiture of non-core assets to free up resources

§ Develop a human capital strategy that aligns with business objectives

§ Strengthen our strategic partnerships.

 

Zambeef's management will continue to focus resources on the Group's profitable business divisions, while improving those divisions that need additional attention to ensure that all areas of the business contribute fully to Group profitability. Management will remain focused on cost control and productivity improvements to enhance margins.

 

 

 

 

 

 

Commenting on these results, Chairman Mr. Mulenga Mundashi said:

 

"The unprecedented effects of the global pandemic disrupted all aspects of life around the world and our business has not been exempted. This invariably meant difficult trading conditions. Balancing between safeguarding the welfare of our people and customers and ensuring the business continuing to run efficiently and effectively whilst feeding the nation. The 2021 financial year was characterised by supply challenges and rising input costs underpinned by a tough macro environment. In comparison to the previous period, the macroeconomic fundamentals remained relatively stable during the financial year in the context of events in the second half of 2020. The local currency depreciated at a much slower rate in the first half and experienced a steep appreciation in the second half of the financial year. Increased consumer spending, stemming from the Central Bank's Covid-19 economic stimulus package resulted in increased demand for our products."

 

"The good rainfall season experienced during the summer increased the supply of hydroelectric power to the nation, which helped alleviate the load shedding situation, thus positively impacting on the financial performance. The strength, resilience and agility of our business can be seen through the strong financial performance, having posted record profits."

 

"The Board believes the key to sustainable growth, while mitigating the effects of dynamic economic and climate cycles, lies in remaining committed to its strategic priorities. As such, the focus remains on the core businesses that generate sustainable and strong cashflows, while reducing our debt to release cash for reinvestment in higher returning projects."

 

"We anticipate macro-economic stability to continue over the medium term supported by improved investor sentiment, high copper prices and improved electricity supply. The Kwacha is expected to maintain relative stability with minor volatility towards the end of the calendar year. The copper price, which is a major foreign exchange earner for the country, is expected to continue holding as the global economy continues to recover from the Covid-19 related shocks. The inflation rate is expected to reduce following an expected summer crop bumper harvest from a forecasted La Niña weather pattern, the appreciation of the Kwacha and restoration of global supply stability. The Covid-19 pandemic remains a threat to the country as its vaccination program continues to move at a slow pace."

 

"The Group remains committed to delivering value to shareholders and is well positioned to navigate the turmoil while capitalising on opportunities."

 

Copies of Zambeef's Annual Report and Accounts for the year ended 30 September 2021 and Notice of AGM will shortly today be available on the Group's website.

 

  For further information, please visit www.zambeefplc.com or contact:

 

 

 

 

Zambeef Products plc

Tel:  +26 (0) 211 369003

Walter Roodt, Chief Executive Officer

 

Faith Mukutu, Chief Financial Officer

 

 

 

finnCap (Nominated Adviser and Broker)

Tel: +44 (0) 20 7220 0500

Ed Frisby/Kate Bannatyne/Tim Harper (Corporate Finance)

 

Tim Redfern/Barney Hayward (ECM)

 

 

Autus Securities Limited

 

Tel: +26 (0) 761 002 002

Mataka Nkhoma

 

 

 

About Zambeef Products PLC

Zambeef Products plc is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the region, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stockfeed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana.

 

It has 238 retail outlets throughout Zambia and West Africa.

 

The Company is one of the largest suppliers of beef in Zambia. Five beef abattoirs and three feedlots are located throughout Zambia, with a capacity to slaughter 230,000 cattle a year. It is also one of the largest chicken and egg producers in Zambia, with a capacity of 8.8m broilers and 22.4 million day-old chicks a year. It is one of the largest piggeries, pig abattoirs and pork processing plants in Zambia, with a capacity to slaughter 75,000 pigs a year, while its dairy has a capacity of 120,000 litres per day.

 

The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 7,787 hectares of row crops under irrigation, which are planted twice a year, and a further 8,694 hectares of rainfed/dry-land crops available for planting each year.

 

CHAIRMAN'S REVIEW

Dear Shareholder,

It is my great pleasure to present to you the Chairman's Report with respect to the financial year ended 30 September 2021.

The unprecedented effects of the global pandemic disrupted all aspects of life around the world and our business has not been exempted. This invariably meant difficult trading conditions. Balancing between safeguarding the welfare of our people and customers and ensuring the business continuing to run efficiently and effectively whilst feeding the nation. The 2021 financial year was characterised by supply challenges and rising input costs underpinned by a tough macro environment. In comparison to the previous period, the macroeconomic fundamentals remained relatively stable during the financial year in the context of events in the second half of 2020. The local currency depreciated at a much slower rate in the first half and experienced a steep appreciation in the second half of the financial year. Increased consumer spending, stemming from government dismantling of domestic debt and the Central Bank's Covid-19 economic stimulus package resulted in increased demand for our products.

 

The good rainfall season experienced during the summer increased the supply of hydroelectric power to the nation, which helped alleviate the load shedding situation, thus positively impacting on the financial performance. The strength, resilience and agility of our business can be seen through the strong financial performance, having posted record profits.

 

The Group generated an operating profit, including profit from asset held for sale, of ZMW299.3 million (USD14.1 million) compared to ZMW212.1 million (USD13.1 million) in the prior financial year. The operating profit excluding profit from asset held for sale operations was ZMW267.3million (USD12.7 million) compared to ZMW210.5 million (USD13.0 million) achieved in the previous financial year. Profit before tax was ZMW203.9 million (USD9.7 million) compared to a loss before tax of ZMW22.7 million (USD1.4 million) achieved in the prior financial year. The Group's performance in the face of headwinds illustrates the strengths of our vertically integrated business model, the strength of our brands and a strong management team.

 

The Board believes the key to sustainable growth, while mitigating the effects of dynamic economic and climate cycles, lies in remaining committed to its strategic priorities. As such, the focus remains on the core businesses that generate sustainable and strong cashflows, while reducing our debt to release cash for reinvestment in higher returning projects.

                                                                                                                               

The Economic Environment

The Zambian economy came under significant pressure in the first half of the financial year, stemming from the national debt burden, which was exacerbated by the impact of the coronavirus pandemic while the second half saw the country hold successful general elections which resulted in positive market sentiments and a positive economic outlook. The Zambian Kwacha appreciated steeply in the last quarter, supported by foreign participation in the bond market and a higher copper price on the international commodity markets.

 

Despite recovery in the global economy, the Zambian economic recovery shall remain gradual, given the high debt burden, high inflation and a volatile currency.

              

Inflationary pressures, particularly food inflation, had resulted in a significant drop in our customers' disposable income and has continued to put pressure on the consumers' share of wallet going towards food spend. Inflation for the financial year under review closed at 22.1% compared to 15.7% for the previous financial year.

 

Divisional Performance review

 

Retail and Cold Chain Food Products

The Group continued to focus on revenue optimisation, asset utilisation and cost control as pillars to drive profitability in the combined retail and cold chain food products divisions. Revenue grew by 30% with an operating profit of ZMW 216.4 million.

 

Supply challenges experienced by the division and rising global food prices precipitated rising input costs. As a result, the division saw volumes decline across most protein categories. 

 

The Poultry business remained a major source of profitable growth for the Group. Management implemented measures to improve production efficiencies, which contributed to improved gross profit margins. Increased demand for eggs, broilers and therefore day-old chicks allowed for revenue growth and improved profitability.

 

Stockfeed

Volumes were flat compared to prior year during the period owing to slow growth and declines on major product lines. The shortage of day-old chicks on the market limited customers buying of broiler feed while an export ban imposed by government reduced export sales. The increase in the world prices of GMO-free soya beans and imported materials negatively impacted cost of sales and, therefore, profitability.

 

Cropping

Zambia had a good summer rainfall season, and as a result, yields for the summer crop were in line with expectations, with winter crop yields exceeding expectations supported by better farming practices and reduced load-shedding. The country delivered a bumper maize harvest, which helped to stabilise maize prices.

 

Outlook

We anticipate macro-economic stability to continue over the medium term supported by improved investor sentiment, high copper prices and improved electricity supply. The Kwacha is expected to maintain relative stability with minor volatility towards the end of the calendar year. The copper price, which is a major foreign exchange earner for the country, is expected to continue holding as the global economy continues to recover from the Covid-19 related shocks. The inflation rate is expected to reduce following an expected summer crop bumper harvest from a forecasted La Niña weather pattern, the appreciation of the Kwacha and restoration of global supply stability. The Covid-19 pandemic remains a threat to the country as the country's vaccination program continues to move at a slow pace.

 

The Group remains committed to delivering value to shareholders and is well positioned to navigate the turmoil while capitalising on opportunities.

 

Strategy

During the year, the board embarked on a five-year strategy refresh process for the Group. Although it is difficult to look ahead with any certainty, I am happy to report that we now have a strategy in place that positions the Group to tackle the challenges ahead while capitalising on the opportunities presented and therefore maximise shareholder value. The strategy provides clarity in terms of where we want to go and what we want to do, having set realistic targets and mapped out a journey. The "five-year" strategy will be underpinned by the following pillars:

 

§ Focus on and strengthen our core business by investing in capacity and grow market share

§ Divestiture of non-core assets to free up resources

§ Develop a human capital strategy that aligns with business objectives

§ Strengthen our strategic partnerships

 

Acknowledgement

On behalf of the Company and the board of directors, I would like to express my sincere gratitude to Dr Lawrence Sikutwa, Margaret Mudenda, John Rabb, David Osborne and Professor Enala Mwase who resigned from the board in February and March 2021. Their dedication and contributions to the success of the business over the years will be greatly missed.

 

During the year, we welcomed Monica Musonda, Pearson Gowero and Roman Frenkel to our board of directors. Their industry experience and rich diverse backgrounds will be key in driving the business into the next phase of the Groups evolution as a regional food provider.

 

At senior management level, we said farewell to Danny Museteka who had been with the company for 22 years, his last role being company secretary. Danny played a vital role in helping to transform the company over the years, and I would like to thank him for his outstanding contribution. We welcomed Mwansa Mutimushi who joined as Group head of legal & company secretary and Nyangu Kayamba who also joined as human resources executive. I believe it is a good addition to the dedicated team and that we have a good balance of skills and professionalism.

 

I also thank my fellow board members for steering the Group through this challenging period. To our management and staff, I express my gratitude to them for another solid performance, dedicated efforts and resilience in the face of challenges. I am proud of our achievements to date, and I am excited by the potential opportunities upon which we will build our future progress.

 

 

Michael Mundashi SC

Chairman

 

 

 

 

 

 

 

 

 

CHIEF EXECUTIVE OFFICER'S REVIEW

 

Overview 

Despite the rising input costs and rising global food prices, and a difficult operating environment resulting from the 2020 economic and Covid-19 pandemic related uncertainties, the positive full year performance has been driven by sustained consumer demand for our products and cost reductions and efficiency improvements especially in the poultry business. The macroeconomic fundamentals remained relatively stable during the financial year in the context of the previous comparative year. The local currency depreciated at a much slower rate in the first half and experienced a steep appreciation in the second half of the financial year. Increased consumer spending stemming from the Covid-19 economic stimulus package resulted in increased demand for our products. The good rainfall season helped alleviate load shedding and therefore positively impacted on the financial performance. The increase in raw material input costs, such as Soya and imported products, impacted on production costs. The resultant increase in food prices to our customers saw increased demand for more affordable offerings of our products as customers traded down.

 

The load shedding situation improved towards the end of the calendar year 2020 following good regional rains because of the La Niña weather pattern, resulting in reduced generator fuel expenditure and improved production efficiencies.

 

The Group delivered operating profit, including profit from asset held for sale, of ZMW299.3 million (USD14.1 million), equating to a growth of 42% in Kwacha terms and 8% growth in US Dollar terms, compared with ZMW212.1 million (USD13.1 million) in 2020. The operating profit excluding profit from asset held for sale was ZMW267.3million (USD12.7 million) compared to ZMW210.5 million (USD13.1 million) achieved in the previous financial year.

 

Our revenue, including from asset held for sale, was ZMW5.2 billion (USD244.1 million) and we achieved a gross profit of ZMW1.54 billion (USD73.1 million), respectively 30.8% and 22.8% above the prior year in Kwacha terms, and 0.5% and 0.1% growth in US Dollar terms, respectively.

 

The Group's strong performance was driven by growth in the poultry and retail divisions. Management continued optimising top line growth through revenue management initiatives while the continued cost control measures helped deliver strong operating profit performance.

 

The Group recorded exchange gains owing to the appreciation of the local currency. Financing costs reduced following a reduction in debt and the appreciation of the local currency. Management took steps to restructure the company's debt profile by replacing USD debt with Kwacha debt to match the debt profile to the revenue profile and thus reduce foreign exchange risk, which should help provide predictability to the bottom line going forward. The USD to ZMW debt mix now stands at 15%:85% compared to 80%:20% at the end of the previous financial year. The Group derived a significant benefit from the central bank's Covid-19 relief fund with favourable interest rates.

 

Our diversified and vertically integrated business with strong brands, supportive partners and an experienced management team helped deliver encouraging results during a challenging year.

 

Strategic focus

Our strategic focus remains to optimise our asset utilisation and maximise returns. We remain committed to our strategy of focussing on our core businesses, in which we strive to be the best in class. The continued deleveraging and divestiture of non-core assets will enable us to free up cash to invest into our core businesses and therefore maximise shareholder value.

Retail and Cold Chain Food Products (CCFP)

The year saw traditionally high-volume sales lines come under pressure amidst a high inflationary environment and reduced customer spending. Despite high demand in our key product lines, supply constraints negatively impacted volume growth. Revenue growth was mainly driven by pricing on traditional product categories and aided by sales volume growth of traded goods and affordable alternative food categories. Shoprite in-store butcheries were a source of revenue growth as they proved relatively more resilient to inflationary pressures.

 

Sales volumes came under pressure on the back of supply constraints due to constrained livestock producer profitability levels. Significant producer price increases were necessary during the period for livestock producers to increase output. The price increases that were necessary to stimulate supply resulted in customers moving towards more affordable protein offerings. The poultry division was a major contributor to revenue growth due to improved efficiencies and high demand for it as a relatively affordable protein source, in the form of chicken and eggs.

 

Despite the challenges, the Retail and Cold Chain Food Products business registered a healthy revenue growth of 30% above the prior year. Management employed a revenue optimisation strategy, responding quickly to the evolving volatile operating environment.

 

Retail and Cold Chain Food Products delivered an operating profit of ZMW 216.4 million in Kwacha terms. Operational efficiency improvements and overhead spend discipline ensured translation of the top line growth to the bottom-line. Reduced load shedding helped reduce fuel costs of our electricity generators, which further contributed to the increased profitability, particularly in the second quarter.

 

Stockfeed

Revenue for the division was 31% above prior year mainly due to price, as volumes remained flat on prior year. The demand for poultry feed reduced following a day-old chick supply shortage across the market. An export ban on animal feed from Zambia resulted in a further slowdown of production volumes. However, fish feed continues to register exponential growth following the sector specific lifting of the fish feed export ban and government's efforts to make Zambia a regional player in the aquaculture sector. The depreciation of the Kwacha to the USD and ZAR negatively impacted foreign currency denominated costs. The high soya bean prices also negatively impacted on the cost of sales.

 

Cropping

Revenue in USD terms increased by 10% due to favourable winter crop price and sale of the soya summer crop. However, operating profit decreased in USD terms due to price increases in input costs. Zambia experienced a good rainfall season and the yield of the summer crop was in line with expectations with the yield of the winter crop exceeding expectations.

 

Outlook

The macroeconomic environment is expected to remain stable with indicators expected to adjust to a more favourable position. The successful holding of general elections on 12 August 2021 and the resultant change in government and peaceful transition has brought investor confidence and optimism. This triggered a sharp appreciation of the kwacha as foreign interest in government securities intensified and foreign direct investment prospects improve. This coupled with high copper prices, a potential IMF deal and continued low load shedding levels due to another La Niña weather pattern this summer, has improved the country's economic outlook. We expect this to translate into a slowdown in inflation, reduced interest rates and thus increased economic activity and a restoration of macroeconomic stability.

 

Despite the macro-economic headwinds and uncertainty caused by the Covid-19 pandemic, Zambeef's underlying performance has been and is expected to remain resilient, improving as the economic situation improves. Our strong brands help us maintain customer loyalty while the vertically integrated business model helps to secure both supply and a market for our products. The future recovery in the economy and strong management have positioned us well for an improved profitability in the coming years.

 

Our deleveraging strategy and debt profile reorganisation will help relieve exchange losses and financing cost pressures to the bottom line, which will increase free cash flow to enable us to invest in the future. 

 

We remain committed to implementing and enforcing Covid-19 protocols in our outlets while driving the vaccination of all our employees. We believe that a healthy, sustainable and profitable growth trend can only be achieved when we work together with our partners, communities and customers to curb infections through the observation and implementation of safety protocols.

 

Key Market Indicators

 

 

 

 

Reporting Period Monthly Averaged Comparatives

2021

2020

Change

Economy

 

 

 

ROE ZMW/USD

ZMW

21.1

16.2

30%

Annual Inflation rate

%

22.1

15.7

41%

Copper

$/Ton

9,041

6,610

37%

 

 

 

 

 

Commodities

 

 

 

 

Maize

$/ton

150

252

-40%

Soya Beans

$/ton

400

382

5%

SE Cake

$/ton

416

403

3%

Wheat

$/Ton

440

415

6%

 

 

 

 

 

Input Prices

 

 

 

 

Maize Bran

K/Ton

1,690

1,190

42%

Broiler Grower

K/50kg

367

310

18%

Pig Grower

K/50Kg

317

251

26%

Layer feed

K/50kg

273

231

18%

Day-old chick

K/DOC

11.1

6.8

63%

 

 

 

 

 

Selling Prices

 

 

 

 

Beef Mixed cut

K/Kg

44.4

37.7

18%

Chicken Frozen

K/Kg

34.6

28.2

23%

Chicken Live Market

K/Chicken

80

52

54%

Egg Tray

K/tray of 30 Eggs

48.8

35.6

37%

 

 

 

 

 

 

 

DIVISIONAL PERFORMANCE

 

Table 1 (ZMW) and Table 2 (USD) below provide a summary of the consolidated performance of the key business divisions reported at an operating profit level.

 

Table 1: Divisional financial summary in ZMW'000

ZMW

Revenue

Gross Profit

Overheads

Operating Profit

Division

2021
ZMW'000

2020
ZMW'000

2021
ZMW'000

2020
ZMW'000

2021
ZMW'000

2020
ZMW'000

2021
ZMW'000

2020
ZMW'000

Total

 

 

 

 

 

 

 

 

Retailing

2,906,466

2,396,313

271,261

243,377

(338,901)

(322,041)

(67,640)

(78,664)

CCFP

2,054,232

1,516,371

556,186

401,276

(272,126)

(213,054)

284,060

188,222

Less Interco

(1,705,769)

(1,399,926)

 

 

 

 

 

 

Combined

 

 

 

 

 

 

 

 

Retail &

3,254,929

2,512,758

827,447

644,653

(611,027)

(535,095)

216,420

109,558

CCFP

 

 

 

 

 

 

 

 

Stock Feed

1,747,742

1,331,965

300,436

255,888

(153,716)

(129,539)

146,720

126,349

Cropping

754,385

651,560

272,254

266,405

(192,845)

(160,618)

79,409

105,787

Others

343,391

203,609

70,579

48,676

(31,985)

(23,450)

38,594

25,226

Total

6,100,447

4,699,892

1,470,716

1,215,622

(989,573)

(848,702)

481,143

366,920

Less: Intra/

 

 

 

 

 

 

 

 

Inter Group

(1,126,096)

(824,788)

Sales

 

 

Central

 

 

 

 

 

 

 

 

Overhead

(213,813)

(156,389)

(213,813)

(156,389)

Group Total

4,974,351

3,875,104

1,470,716

1,215,622

(1,203,386)

(1,005,091)

267,330

210,531

 

 

 

 

 

DIVISIONAL PERFORMANCE

 

Table 2: Divisional financial summary in USD'000

USD

Revenue

Gross Profit

Overheads

Operating Profit

Division

2021
USD'000

2020
USD'000

2021
USD'000

2020
USD'000

2021
USD'000

2020
USD'000

2021
USD'000

2020
USD'000

Total

 

 

 

 

 

 

 

 

Retailing

137,617

148,195

12,844

15,051

(16,046)

(19,916)

(3,203)

(4,865)

CCFP

97,265

93,777

26,335

24,816

(12,885)

(13,176)

13,450

11,640

Less Interco

(80,766)

(86,576)

-

-

-

-

-

 

Combined

 

 

 

 

 

 

 

 

Retail &

154,116

155,396

39,178

39,867

(28,931)

(33,092)

10,247

6,775

CCFP

 

 

 

 

 

 

 

 

Stock Feed

82,753

82,373

14,225

15,825

(7,278)

(8,011)

6,947

7,814

Cropping

35,719

40,294

12,891

16,475

(9,131)

(9,933)

3,760

6,542

Others

16,259

12,592

3,342

3,010

(1,514)

(1,450)

1,827

1,560

Total

288,847

290,655

69,636

75,178

(46,855)

(52,486)

22,781

22,691

Less: Intra/

 

 

 

 

 

 

 

 

 

Inter Group

(53,319)

(51,007)

Sales

 

 

Central

 

 

 

 

 

 

 

 

Overhead

(10,124)

(9,672)

(10,124)

(9,672)

Group Total

235,528

239,648

69,636

75,178

(56,979)

(62,158)

12,658

13,020

 

Taking the performance of each of our key business areas in turn:

 

Retail and Cold Chain Food Products

The combined Retail and Cold Chain Food Products divisions generated an EBIT margin of 6.7% which increased by 229 basis points from the previous financial year to ZMW 216.4 million (2020: ZMW 109.6 million) in Kwacha terms and grew impressively by 51.2% to USD 10.3 million (2020: USD 6.7 million) in Dollar terms.

 

The strong performance was underpinned by revenue optimisation and cost control in Poultry products supported by increased demand given the relative affordability of Chicken and Egg as a source of protein. Cost pressure arising from supply constraints negatively impacted on the profitability in Pork, Beef and Milk.

 

West Africa Retail

Our Nigerian business was impacted by the sporadic protests related to the Shoprite announcement of the intention to pull out of the Nigeria market and the End SARS protests. In addition, the business experienced supply challenges across its major product lines. Despite all these challenges, revenue increased by 14% to USD 15.4 million (2020: USD 13.5 million) mainly due to pricing and exchange translational effects with dollar revenue increasing by 14%. However, operating profit declined by 52% in dollar terms due to rising costs of inputs.

 

Stockfeed

Sales volumes were flat on prior year mainly due to declines on key volume categories. Shortage of day-old chicks slowed the growth of broiler feed while an export ban impacted export sales.

 

Revenue grew by 31% in Kwacha terms and 0.5% in USD terms, while the operating profit grew by 16% to ZMW 146.7 million (2020: ZMW 126 million) or declined by 11% to USD 6.9 million (2020: USD 7.8 million) in Dollar terms. Production costs was impacted by rising costs of inputs, particularly the Soya and imported raw materials.

 

 

Cropping

The Cropping business is key to Zambeef, providing raw material inputs for value added processing within the Group and serving as a currency hedge by being able to generate USD cash flow.

 

Revenue including revenue from assets heald for sale increased by 10% in USD terms to USD 44.3 million (2020: USD 40.3 million) which translated to a 43.4% growth in revenue to ZMW 935.9 million (2020: ZMW 651.5 million) when analysed in kwacha terms. Gross profit increased by 30% to ZMW 345 million compared to the previous corresponding period (2020: ZMW 266 million) in Kwacha terms despite a 1% reduction in USD terms to USD 16.3 million (2020: USD 16.5 million). The division observed an increase in overheads of 47% in Kwacha terms and 12.7% in USD as a result of increments in repair and maintenance costs during the period under review.

 

Zambia experienced a good rainfall season and the summer harvest is expected to be in line with expectations. However, the price of maize is expected to be lower than the prior year following the expected bumper harvest predicted for Zambia.

 

Other businesses

 

Total revenue from the Group's other business units increased by 68.7%% to ZMW 343 million (2020: ZMW 203.6 million) mainly due to growth in both the milling and leather to shoe businesses. This translated to gross profit growth of 45% in Kwacha terms due to cost pressures in Milling arising from the increase in price of wheat in kwacha terms following the depreciation of the currency.

 

The leather to shoe business turnaround strategy paid off as the division saw an increase in demand for its products, particularly school shoes, following the opening of schools after Covid-19 related closures. Management focus has been to optimise production efficiencies, control overhead costs, innovation and look for new market opportunities for its products.

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Group

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

Revenue

4,974,351

235,528

3,875,104

239,648

Net (loss)/gain arising from price changes in fair value of biological assets

6,651

315

(14,381)

(889)

Cost of sales

(3,510,286)

(166,207)

(2,645,101)

(163,581)

Gross profit

1,470,716

69,636

1,215,622

75,178

Administrative expenses

(1,150,658)

(54,482)

(945,198)

(58,454)

Distribution costs

(66,848)

(3,165)

(66,770)

(4,129)

Other income

14,120

669

6,877

425

Operating profit

267,330

12,658

210,531

13,020

Share of loss from equity accounted investment

(3,358)

(159)

(3,177)

(197)

Profit from asset held for sale

31,949

1,513

-

-

Exchange losses on translating foreign currency transactions and balances

23,332

1,105

(137,705)

(8,516)

Finance costs

(115,282)

(5,458)

(92,322)

(5,709)

Profit/(loss) before taxation

203,971

9,658

(22,673)

(1,402)

Taxation charge

(35,148)

(1,664)

(112,957)

(6,986)

Group income/(loss) for the year from continuing operations

168,823

7,995

(135,630)

(8,388)

Profit from discontinued operations

-

-

33,435

2,068

Group income/(loss) for the year

168,823

7,995

(102,195)

(6,320)

 

 

               

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

2021

ZMW'000s

2021

USD'000s

2020

ZMW'000s

2020

USD'000s

Group (loss)/income attributable to:

 

 

 

 

Equity holders of the parent

167,980

7,955

(103,419)

(6,396)

Non-controlling interest

843

40

1,224

76

 

168,823

7,995

(102,195)

(6,320)

Other comprehensive income:

 

 

 

 

Items that may be reclassified

subsequently to profit or loss

 

 

 

 

Exchange gains/(losses) on translating presentational currency

(286,645)

25,338

625,042

(52,402)

Items that will not be reclassified

subsequently to profit or loss

 

 

 

 

Remeasurement of net defined benefit liability

(2,813)

(133)

6,229

385

Remeasurement of leases

-

-

315

20

Revaluation of assets

192,403

9,110

-

-

Total other comprehensive income/(loss)

(97,055)

34,315

631,586

(51,997)

Total comprehensive income/(loss) for the year

71,768

42,310

529,391

(58,317)

Total comprehensive income/(loss) for the year attributable to:

 

 

 

 

Equity holders of the parent

73,867

42,440

525,030

(58,661)

Non-controlling interest

(2,099)

(130)

4,361

344

 

71,768

42,310

529,391

(58,317)

 

Ngwee

Cents

Ngwee

Cents

Earnings per share

 

 

 

 

Basic earnings per share - continued operations

55.89

2.65

(45.12)

(2.79)

Basic earnings per share - discontinued operations

-

-

11.12

0.69

Total Basic earnings per share

55.89

2.65

(34.00)

(2.10)

Diluted earnings per share

 

 

 

 

Diluted earnings per share - continued operations

41.92

1.99

(45.12)

(2.79)

Diluted earnings per share - discontinued operations

-

-

11.12

0.69

Total Diluted earnings per share

41.92

1.99

(34.00)

(2.10)

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

(i) In Zambian Kwacha

 

 

 

Issued share capital

ZMW'000s

 

 

 

Share premium

ZMW'000s

 

 

 

Preference share capital

ZMW'000s

 

 

Foreign exchange reserve

ZMW'000s

 

 

 

Revaluation reserve

ZMW'000s

 

 

 

Retained earnings

ZMW'000s

Total attributable to owners of the parent ZMW'000s

 

 

Non- controlling interest

ZMW'000s

 

 

 

 

Total equity

ZMW'000s

As at 30 September 2019

3,006

 

1,000

381,929

1,199,058

535,704

3,245,709

 

(4,881)

3,240,828

Adjustment on transition to IFRS16

-

-

 

-

-

-

315

315

 

-

315

At 1 October 2019

Loss for the year

Transfer of surplus depreciation

Other comprehensive income:

 

 

 

 

 

 

 

 

 

Exchange gain/(loss) on translating presentational currency

Remeasurement of net defined benefit liability

Total comprehensive income

At 30 September 2020

Profit for the year

168,823

Transfer of surplus depreciation

Other comprehensive income:

 

 

 

 

 

 

 

 

 

Revaluation

Exchange gain/ (loss) on translating presentational currency

Remeasurement of net defined benefit liability

Total comprehensive income

 

At 30 September 2021

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

(ii) In US Dollar

 

 

 

Issued share capital

USD'000s

 

 

 

Share premium

USD'000s

 

 

 

Preference share capital

USD'000s

 

 

Foreign exchange reserve

USD'000s

 

 

 

Revaluation reserve

USD'000s

 

 

 

Retained earnings

USD'000s

Total attributable to owners of the parent USD'000s

 

 

Non- controlling interest

USD'000s

 

 

 

 

Total equity

USD'000s

At 1 October 2019

449

185,095

100

(197,748)

173,209

84,782

245,887

(370)

245,517

Adjustment on transition to IFRS 16

-

-

-

-

-

20

20

-

20

As at 1 October 2019

449

185,095

100

(197,748)

173,209

84,802

245,907

(370)

245,537

Loss for the year

-

-

-

-

-

(6,396)

(6,396)

76

(6,320)

Transfer of surplus depreciation

-

-

-

-

(1,938)

1,938

-

-

-

Other comprehensive income:

 

 

 

 

 

 

 

 

 

Exchange gains on translating presentational currency

-

-

-

(52,670)

-

-

(52,670)

268

(52,402)

Remeasurement of net defined benefit liability

-

-

-

-

-

385

385

-

385

Total comprehensive income

 

-

 

-

 

-

(52,670)

(1,938)

(4,073)

(58,681)

344

(58,337)

At 30 September 2020

449

185,095

100

(250,418)

171,271

80,729

187,226

(26)

187,200

Profit for the year

-

-

-

-

-

7,955

7,955

40

7,995

Transfer of surplus depreciation

-

-

-

-

(2,101)

2,101

-

-

-

Other comprehensive income:

 

 

 

 

 

 

 

 

 

Revaluation

-

-

-

-

9,110

-

9,110

-

9,110

Exchange gains on translating presentational currency

-

-

-

25,508

-

-

25,508

(170)

25,338

Remeasurement of net defined benefit liability

-

-

-

-

-

(133)

(133)

-

(133)

Total comprehensive income

 

-

 

-

 

-

25,508

7,009

9,994

42,440

(130)

42,310

At 30 September 2021

449

185,095

100

(224,910)

178,280

90,652

229,666

(156)

229,510

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

 

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

(i) In Zambian Kwacha

Issued share capital ZMW'000s

Preference share capital ZMW'000s

Share premium ZMW'000s

Revaluation reserve ZMW'000s

Foreign exchange reserve

ZMW'000s

Retained earnings ZMW'000s

Total equity

ZMW'000s

At 1 October 2019

3,006

1,000

1,125,012

862,152

360,506

535,236

2,886,912

Profit for the year

-

-

-

-

-

26,838

26,838

Other comprehensive income:

 

 

 

 

 

 

 

Transfer of surplus depreciation

 

-

 

-

 

-

 

(33,614)

 

-

 

33,614

 

-

Remeasurement of net defined benefits liability

 

-

 

-

 

-

 

-

 

-

 

1,836

 

1,836

Exchange gain on translating presentational currency

 

 

-

 

 

-

 

 

-

 

 

-

 

 

609,324

 

 

-

 

 

609,324

Total comprehensive income

-

-

-

     (33,614)

 

 

609,324

62,288

637,998

At 30 September 2020

3,006

1,000

1,125,012

828,538

969,830

597,524

3,524,910

Profit for the year

-

-

-

-

-

131,349

131,349

Other comprehensive income:

 

 

 

 

 

 

 

Revaluation

-

-

-

40,125

-

-

40,125

Transfer of surplus depreciation

 

-

 

-

 

-

 

(46,972)

 

-

 

46,972

 

-

Remeasurement of net defined benefits liability

 

-

 

-

 

-

 

-

 

-

 

(1,408)

 

(1,408)

Exchange gain/(loss) on translating presentational currency

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(271,935)

 

 

-

 

 

(271,935)

Total comprehensive income

-

-

-

(6,847)

 

 

(271,935)

176,913

(101,869)

At 30 September 2021

3,006

1,000

1,125,012

821,691

697,895

774,437

3,423,041

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

COMPANY STATEMENT OF CHANGES IN EQUITY (CONTINUED)

(ii) In US Dollar

 

Issued share capital

USD'000s

 

Preference share capital

USD'000s

 

Share premium

USD'000s

 

Revaluation reserve

USD'000s

Foreign exchange reserve USD'000s

 

Retained earnings

USD'000s

 

 

Total equity

USD'000s

At 1 October 2019

449

100

185,095

116,408

(168,059)

84,712

218,705

Profit for the year

-

-

-

-

-

1,661

1,661

Other comprehensive income:

 

 

 

 

 

 

 

Transfer of surplus depreciation

-

-

-

(2,079)

-

2,079

-

Remeasurement of net defined benefits liability

-

-

-

-

-

114

114

Exchange losses on translating presentational currency

-

-

-

-

(45,460)

-

(45,460)

Total comprehensive income

-

-

-

(2,079)

(45,460)

3,854

(43,685)

At 30 September 2020

449

100

185,095

114,329

(213,519)

88,566

175,020

Profit for the year

-

-

-

-

-

6,219

6,219

Other comprehensive income:

 

 

 

 

 

 

 

Revaluation

-

-

-

1,900

-

-

1,900

Transfer of surplus depreciation

-

-

-

(2,224)

-

2,224

-

Remeasurement of net defined benefits liability

-

-

-

-

-

(66)

(66)

Exchange losses on translating presentational currency

-

-

-

-

21,410

-

21,410

Total comprehensive income

-

-

-

(324)

21,410

8,377

29,463

At 30 September 2021

449

100

185,095

114,005

(191,109)

96,943

204,483

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021

ASSETS

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

Goodwill

Property, plant and equipment

Investment in associate

Deferred tax asset

 

Current assets

 

 

 

 

Biological assets

Inventories

Trade and other receivables

Assets held for sale

Amounts due from related companies

Income tax recoverable

Cash and cash equivalents

 

Total assets

Share capital

Preference share capital

Share premium

Other reserves

 

Non-controlling interest

 

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021 (CONTINUED)

 

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

Interest bearing liabilities

195,555

11,682

190,218

9,445

Leases

7,253

433

19,750

981

Deferred liability

8,891

531

11,389

565

Deferred tax liability

88,056

5,260

69,950

3,473

 

299,307

17,906

291,307

14,464

Interest bearing liabilities

210,709

12,587

326,899

16,231

Leases

12,418

742

23,259

1,155

Trade and other payables

464,103

27,723

321,648

15,971

Provisions

169,307

10,113

113,347

5,629

Amounts due to related companies

-

-

443

22

Taxation payable

13,771

823

41

2

Bank overdrafts

490,204

29,283

348,045

17,281

 

1,360,512

81,271

1,133,682

56,291

 

Total equity and liabilities

5,502,254

328,687

 

5,195,208

 

257,955

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

COMPANY STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021

ASSETS

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

Non-current assets

 

 

 

 

Property, plant and equipment

2,166,483

129,420

2,476,394

122,959

Investments in subsidiaries

245,807

14,684

245,807

12,205

Investment in associate

40,468

2,417

43,826

2,176

 

2,452,758

146,521

2,766,027

137,340

Current assets

 

 

 

 

Biological assets

307,948

18,396

139,501

6,927

Inventories

772,972

46,174

814,081

40,421

Assets held for sale

170,550

10,188

175,654

8,722

Trade and other receivables

91,702

5,478

50,555

2,510

Amounts due from related companies

780,554

46,628

1,320,117

65,547

Income tax recoverable

2,520

151

565

28

Cash and cash equivalents

113,193

6,762

12,645

628

 

2,239,439

133,777

2,513,118

124,783

Total assets

4,692,197

280,298

5,279,145

262,123

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

Capital and reserves

 

 

 

 

Share capital

3,006

449

3,006

449

Preference share capital

1,000

100

1,000

100

Share premium

1,125,012

185,095

1,125,012

185,095

Other reserves

2,294,023

18,839

2,395,892

(10,624)

 

3,423,041

204,483

3,524,910

175,020

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

COMPANY STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021 (CONTINUED)

 

 

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

Non-current liabilities

 

 

 

 

Interest bearing liabilities

195,555

11,682

190,218

9,445

Leases

1,873

112

8,172

406

Deferred liability

2,124

127

3,356

167

Deferred tax liability

55,905

3,340

41,153

2,043

 

255,457

15,260

242,899

12,061

Current liabilities

 

 

 

 

Interest bearing liabilities

210,709

12,587

326,899

16,231

Leases

6,597

394

14,461

718

Trade and other payables

293,054

17,506

232,844

11,561

Provisions

119,649

7,147

61,200

3,039

Amounts due to related companies

77,273

4,616

705,110

35,011

Bank overdrafts

306,417

18,304

170,822

8,482

 

1,013,699

60,555

1,511,336

75,042

Total equity and liabilities

4,692,197

280,299

5,279,145

262,123

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

(Loss)/profit before taxation

203,971

9,658

(22,673)

(1,402)

Finance costs

115,282

5,458

92,322

5,709

Loss on disposal of property, plant and equipment

2,260

107

4,796

297

Depreciation

160,471

7,598

141,408

8,745

Share of loss on equity accounted investment

3,358

159

3,177

196

Profit on discontinued operations

-

-

1,529

95

Fair value price adjustment

(6,651)

(315)

14,381

889

Defined benefits movement

4,473

212

(3,185)

(197)

Defined benefits paid

(6,971)

(330)

(1,788)

(111)

Net unrealised foreign exchange losses

(19,422)

(920)

185,438

11,468

 

Earnings before interest, tax, depreciation and amortisation, fair value adjustments and net unrealised foreign exchange losses

456,771

21,627

415,405

25,689

Decrease/(increase) in biological assets

(176,041)

(8,335)

(20,269)

(1,253)

Increase in inventory

(94,206)

(4,461))

(162,481)

(10,048)

(Increase)/decrease in trade and other receivables

(101,408)

(4,802)

(34,643)

(2,142)

Decrease/(Increase) in amounts due from related companies

5,135

243

(2,410)

(149)

Increase/(decrease) in trade and other payables

198,415

9,395

122,496

7,575

Increase in amounts due to related companies

(443)

(21)

192

12

Income tax paid

(4,734)

(224)

(5,525)

(342)

Net cash inflow from operating activities

283,489

13,422

312,765

19,342

Investing activities

 

 

 

 

Purchase of property, plant and equipment

(116,629)

(5,522)

(92,664)

(5,731)

Proceeds from the sale of assets

51

2

6,452

399

Proceeds from the sale of assets/investments

-

-

167,264

10,344

Net cash (outflow)/inflow (on)/ from investing activities

(116,578)

(5,520)

81,052

5,012

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES                                               

FOR THE YEAR ENDED 30 SEPTEMBER 2021 (CONTINUED)
CONSOLIDATED STATEMENT OF CASH FLOWS

 

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

Net cash (outflow)/ inflow before financing activities

166,911

7,902

393,817

24,354

Financing activities

 

 

 

 

Long term loans repaid

(262,705)

(12,439)

(162,217)

(10,032)

Receipt from term loans

220,000

10,417

-

-

Repayment short term funding

(477,906)

(22,628)

(623,231)

(38,542)

Receipt of short-term funding

449,619

21,289

487,320

30,137

Lease finance repayment

(32,513)

(1,539)

(35,478)

(2,194)

 

Lease finance obtained

-

-

14,329

886

Finance costs

(115,282)

(5,458)

(92,322)

(5,709)

Net cash outflow on financing activities

(218,787)

(10,358)

(411,599)

(25,454)

Decrease in cash and cash equivalents

(51,876)

(2,456)

(17,782)

(1,100)

Cash and cash equivalents at beginning of the year

(236,909)

(11,763)

(274,425)

(20,790)

Effects of exchange rate changes on the balance of cash held in foreign currencies

120

(3,025)

55,298

10,127

Cash and cash equivalents at end of the year

(288,665)

(17,244)

(236,909)

(11,763)

Represented by:

 

 

 

 

Cash in hand and at bank

201,539

12,039

111,136

5,518

Bank overdrafts

(490,204)

(29,283)

(348,045)

(17,281)

 

(288,665)

(17,244)

(236,909)

(11,763)

           

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

 

Note

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

Cash inflow from operating activities

 

 

 

 

 

Profit before taxation

 

147,144

6,967

34,203

2,115

Finance costs

 

84,981

4,024

68,747

4,252

Depreciation

14

87,466

4,141

80,462

4,976

Fair value price adjustment

16

3,323

157

15,464

956

Loss on disposal of property, plant and equipment

 

553

26

1,216

75

Share of loss on equity accounted investment

 

3,358

159

3,177

196

Defined benefit movement

 

2,241

106

312

19

Defined benefits paid   (3,473) (164) (611) (38)

Profit on discontinued operations

 

-

-

1,529

95

Net unrealised foreign exchange differences

 

34,065

1,613

180,954

11,193

Earnings before interest, tax, depreciation and amortisation

 

359,658

17,029

385,453

23,839

Increase in biological assets

 

(168,448)

(7,976)

(2,286)

(141)

Decrease/(increase) in inventory

 

41,109

1,946

(130,482)

(8,069)

Increase in trade and other receivables

 

(41,147)

(1,948)

(22,402)

(1,385)

(Increase)/decrease in amounts due from related companies

 

539,563

22,656

(275,999)

(17,069)

Increase in trade and other payables

 

w

5,747

74,340

4,597

Increase in amounts due to related companies

 

(564,313)

(26,719)

215,065

13,300

Income tax paid

10(c)

(2,997)

(142)

(5,314)

(329)

Net cash inflow from operating activities

 

220,968

10,461

238,375

14,743

Investing activities

 

 

 

 

 

Purchase of property, plant and equipment

14

(43,129)

(2,042)

(35,385)

(2,188)

Proceeds from disposal of investment

 

-

-

167,264

10,344

Proceeds from sale of assets

 

157

7

4,205

260

Net cash (outflow)/inflow (on)/from investing activities

 

(42,972)

(2,035)

136,084

8,416

             

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2021 (CONTINUED)

 

 

Note

2021
ZMW'000s

2021
USD'000s

2020
ZMW'000s

2020
USD'000s

Net cash inflow before financing activities

 

177,996

8,426

374,459

23,159

Financing activities

 

 

 

 

 

Long term loans repaid

29

(262,705)

(12,439)

(162,217)

(10,032)

Receipt from term loans

29

220,000

10,417

-

-

Short term funding repaid

29

(477,906)

(22,628)

(623,231)

(38,542)

Short term funding obtained

29

449,619

21,289

487,320

30,137

Lease finance repayment

29

(27,476)

(1,301)

(30,835)

(1,907)

Lease finance obtained

29

-

-

14,329

886

Interest paid

 

(84,981)

(4,024)

(68,747)

(4,252)

Net cash outflow on financing activities

 

(183,449)

(8,686)

(383,381)

(23,710)

Increase/(decrease) in cash and cash equivalents

 

(5,453)

(260)

(8,922)

(551)

Cash and cash equivalents at beginning of the year

 

(158,177)

(7,854)

(195,772)

(14,381)

Effects of exchange rate changes on the balance of cash held in foreign currencies

 

(29,594)

(3,429)

46,517

7,078

Cash and cash equivalents at end of the year

20

(193,224)

(11,543)

(158,177)

(7,854)

Represented by:

 

 

 

 

 

Cash in hand and at bank

20

113,193

6,761

12,644

628

Bank overdrafts

20

(306,417)

(18,304)

(170,821)

(8,482)

 

 

(193,224)

(11,543)

(158,177)

(7,854)

 

 

 

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