RNS Number : 0252P
Zambeef Products PLC
15 June 2022
 

15 June 2022

 

 

Zambeef Products plc

("Zambeef" or the "Group")

 

Interim results for the Half Year Ended 31 March 2022

 

Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana, today announces its results for the half-year ended 31 March 2022.

 

Financial Highlights

Figures in 000's

 

2022

2021

%


2022

2021

%


 

ZMW

ZMW


USD

USD


 

 

 

 





Revenue

 

 2,568,680

 2,150,473

19.4%

 

 148,136

 102,501

44.5%

Cost of sales


(1,715,287)

 (1,411,049)

21.6%


 (98,921)

 (67,257)

47.1%

Gross profit

 

 853,393

 739,424

15.4%

 

 49,215

 35,244

39.6%

Administrative expenses


 (622,986)

 (584,654)

6.5%


 (35,928)

 (27,867)

28.9%

Operating profit

 

 230,407

 154,770

48.9%

 

 13,287

 7,377

80.1%

Profit from asset held for sale

 

10,330


-

 

596

-

-

Share of profit equity accounted investment

 

 (1,287)

 (915)

40.7%

 

 (74)

 (44)

68.2%

Exchange losses

 

 113

 (42,558)

100.3%

 

 7

 (2,029)

100.3%

Finance costs

 

 (58,413)

 (56,360)

3.7%

 

 (3,369)

 (2,686)

25.4%

Profit before taxation

 

 181,150

 54,937

229.7%

 

 10,447

 2,618

299.0%

Taxation charge


 (33,587)

 (21,846)

53.7%


 (1,937)

 (1,041)

86.1%

Profit for the period from continued operations

 

 147,563

 33,091

345.9%

 

 8,510

      1,577

439.6%

Profit from discontinued operations

 

-

20,843

-

 

-

993

    -

Total profit for the period

 

147,563

53,934

173.6

 

8,510

2,570

231.1%

EBITDA

 

 310,422

 193,398

60.51%

 

 17,902

 9,217

94.2%

Gross Profit Margin


33.2%

34.4%



33.2%

34.4%


EBITDA Margin


12.1%

9.0%



12.1%

9.0%


Debt/Equity (Gearing)


14.9%

25.4%



14.92%

25.43%


Debt-To-EBITDA


1.91

5.19%



1.83

4.93


 

 

PERFORMANCE OVERVIEW

 

The period saw relative macroeconomic stability with the kwacha appreciating relative to the US Dollar and inflation on a steady downward trajectory. However, input costs to our livestock division increased as a result of increasing commodity prices and fuel costs. Together with a tight monetary policy, this resulted in constrained consumer spending which affected the demand for our products.

 

However, the Group posted results that were ahead of market expectations (with this improved performance being notified in the Company's Trading Update announcement of 27 April 2022), driven by good performance in our cropping and stockfeed division and continued focus on cost control. Market share gains and increased Layer feed prices in our stock feed business resulted in increased profitability and sustained margins.

 

Zambeef's chain of 237 retail outlets, both own-brand and within Shoprite supermarkets, remain at the heart of the business, with demand from consumers driving supply.

 

KEY FINANCIAL HIGHLIGHTS

 

Revenue measured in at ZMW2.6 billion (USD148.1 million) with a gross profit of ZMW853.4 million (USD49.2 million), a growth of 19% and 15% when compared to the previous corresponding period in kwacha terms as well as 45% and 40% in USD terms respectively.

                                                                                                                         

The Group's topline performance was due to performance in Cropping and Stockfeed. Higher grain prices, stockfeed market share gains and good farming interventions enabled the business to post profitability. Cost pressures stemming from covid related global supply chain desruptions, fuel costs and subdued demand on our protein products resulted in margin erosion.

 

Management continued the cost optimisation agenda through streamlining administrative costs while the continued direct cost control measures helped deliver strong operating profit leverage.

 

 

Commenting on these results, Mr Michael Mundashi said:

 

"The Group faced margin pressure arising from a rise in input costs such as Soya and energy across our value chains. However, our diversified portfolio of brands and vertically integrated businesses ensured the impact is balanced across the divisions, thereby enabling the overall growth in Group profitability.

 

The Board believes the key to sustainable growth lies in remaining committed to its strategic priorities, while mitigating the effects of dynamic economic and climate cycles. As such, the focus remains to invest in growth and optimisation opportunities and invest in our core businesses and the divestiture of non-core businesses. The vertical and horizontal integrated business structure remains essential to sustained profitability growth and balancing economic and climatic cyclicity.

 

"We anticipate macro-economic stability for Zambia to continue over the medium term supported by improved investor sentiment, elevated copper prices and the possibility of an International Monetary Fund supported debt management program. The kwacha is expected to remain relatively stable supported by increased mining output.

 

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 continue on the downward trajectory, although the outcome of the Russo-Ukrainian tensions will lead to further rises in global food and energy prices which still pose a risk of higher inflation locally. The world at large and Zambia in particular, have acclimatised to living with the Covid-19 pandemic. Therefore, we expect Covid-19 related shocks to the business and the economy to remain minimal."

 

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

 

Zambeef Products plc

Tel:  +260 (0) 211 369003

Walter Roodt, Chief Executive Office


Faith Mukutu, Chief Financial Officer




finnCap (Nominated Adviser and Broker)

Tel: +44 (0) 20 7220 0500

Ed Frisby/Tim Harper (Corporate Finance)


Tim Redfern/Barney Hayward (ECM)


 

Autus Securities Limited

 

Tel: +260 (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 236 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 REPORT

 

Dear Shareholder,

 

It is my great pleasure to present to you the Chairman's Report with respect to the half year ended 31 March, 2022.

 

The period saw relative macroeconomic stability with the kwacha appreciating relative to the US Dollar and inflation on a steady downward trajectory. However, input costs to our livestock division increased as a result of increasing commodity prices and fuel costs. Together with a tight monetary policy, this resulted in constrained consumer spending which affected the demand for our products. Despite these headwinds, the Group posted results that were ahead of market expectations (with this improved performance being notified in the Company's Trading Update announcement of 27 April 2022), driven by good performance in our cropping and stockfeed division and continued focus on cost control.

 

The Group faced margin pressure arising from a rise in input costs such as Soya and energy across our value chains. However, our diversified portfolio of brands and vertically integrated businesses ensured the impact is balanced across the divisions, thereby enabling the overall group to profitability growth.

 

The Group generated an operating profit, including profit from asset held for sale, of ZMW240.7 million (USD13.8 million) compared to ZMW175.6million (USD8.4 million) in the prior financial year. The operating profit, excluding profit from asset held for sale, was ZMW230.4 million (USD13.3 million) compared to ZMW154.8 million (USD7.4 million) achieved in the previous financial year. Profit before tax was ZMW181.1 million (USD10.4 million) compared to ZMW54.9 million (USD2.6 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 good management team.

 

The Board believes the key to sustainable growth lies in remaining committed to its strategic priorities, while mitigating the effects of dynamic economic and climate cycles. As such, the focus remains to invest in growth and optimisation opportunities and invest in our core businesses and the divestiture of non-core businesses. The vertical and horizontal integrated business structure remains essential to sustained profitability growth and balancing economic and climatic cyclicity.

           

The Economic Environment

The Zambian economy saw signs of macroeconomic recovery, following the successful general elections which resulted in positive market sentiments and a positive economic outlook. The Zambian kwacha remained relatively stable, with elements of volatility being seen at the end of both the first and second quarters. The strength of the currency was supported by foreign participation in the bond market and a higher copper price on the international commodity market.

 

Despite recovery in the global economy, the Zambian economic recovery remains gradual, given the high debt burden and reduced consumer spending.      

                                                                                                                                                                                                                                                         

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. However, inflation continued on the downward trend for the period under review closing at 13.1% compared to 22.8% for the previous financial year, supported mainly by a reduction in food inflation rates as it came off a high base from the previous year. This however did not offset steep cold chain foods sales volume losses for the half-year period.

 

Retail and Cold Chain Food Products

Revenue in the Retail and Cold Chain Food business grew by 11% to ZMW2.6 billion with operating profit growth of 26% to ZMW96 million, supported by sustained revenue management and cost control in light of margin pressure due to a reduction in demand in the face of rising input costs.

 

Rising global food prices, particularly grain, precipitated in high animal feed costs. As a result, the division saw margin pressures across most protein categories as feed is a significant cost in primary protein production.

 

The Poultry business saw demand reduction owing to sustained chicken price escalations, which resulted in consumers downgrading to cheaper protein sources. Management has responded and implemented measures that are expected to see a recovery in the second half-year period.

 

Cropping and Milling (Cropping, Stockfeed and Wheat Milling)

Zambia experienced a late onset to the summer rainfall season, and as a result, yields for the summer crop declined. However, favourable grain prices deliver strong growth.

 

The first quarter resulted in below expected stockfeed sales volumes with the second quarter showing strong gains in market share due to Stockfeed strong raw material position.

 

Debt reduction

During the half year period, the Group continued to deleverage by making repayments on debt obligations as they became due and utilising the internally generated cash to reduce our short-term debt. Net debt for the half year period closed at ZMW592 million (USD33million) from ZMW715 million (USD46million) as at 30 September 2021. The resultant balance sheet positions the Group with capacity to finance efficiency upgrades and production capacity expansion.

 

The steps that management took in 2021, to restructure the Company's debt profile by replacing the majority USD debt with kwacha debt to match the primary revenue base currency to the Company's debt service profile is beginning to yield results. We now have greater certainty of committed debt repayment amounts which has resulted in significantly reduced exchange rate risks.

 

Outlook

We anticipate macro-economic stability for Zambia to continue over the medium term supported by improved investor sentiment, elevated copper prices and the possibility of an International Monetary Fund supported debt management program. The kwacha is expected to remain relatively stable supported by increased mining output.

 

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 continue on the downward trajectory, although the outcome of the Russo-Ukrainian tensions will lead to further rises in global food and energy prices which still pose a risk of higher inflation locally. The world at large and Zambia in particular, have acclimatised to living with the Covid-19 pandemic. Therefore, we expect Covid-19 related shocks to the business and the economy to remain minimal.

 

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

 

Strategy

Following the strategy reset process of 2021, I am happy to report that the board remains committed to and is on track in implementing the strategic imperatives. The following are the pillars on which the five year strategy was underpinned:

 

§ Focus 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

§ Enhancement of shareholders value

 

Acknowledgement

 

On behalf of the Company and the Board of Directors, I would like to express my sincere gratitude to Yollard Kachinda and Frank Braeken who resigned from the board on 14 April 2022 and 27 May, 2022, respectively. Their dedication and contributions to the business during the period they served as directors will be greatly missed.

 

I also thank my fellow board members for steering the Group through the first half of the year and positioning it for the next phase of growth. 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

Chairman

 

15 June 2022

 

 

 

 

CHIEF EXECUTIVE OFFICER'S REVIEW

 

Overview 

Despite the 2022 half-year period being characterised by difficult trading conditions, the Group results exceeded market expectations, as previously announced, due to the performance in the Cropping and Milling division. Higher grain prices and Stockfeed market share gains enabled the business to post strong profits. However, in light of the macroeconomic fundamentals stabilising, the reduced consumer spend on the back of a rise in input costs put pressure on volumes and margins in the Retail and Cold Chain Food Products (CCFP) segment. The increase in raw material input costs, such as soya and wheat, negatively impacted primary protein and milling production costs with the consequent increase in food prices to our customers resulting in reduced demand for our products as customers traded down, particularly in the first quarter of the financial year. The second quarter saw a slight volume recovery in the Retail and CCFP segments as management responded to the changing commercial environment.

 

The Group posted revenue, including from assets held for sale, of ZMW2.6 billion (USD150 million) and we achieved a gross profit of ZMW884 million (USD51 million), being 16% and 13% above the prior year in kwacha terms, and 40% and 37% growth in USD terms, respectively.

 

The Group's strong performance was driven by the Cropping and Milling division. Management continued optimising top line growth through revenue management initiatives while the continued cost control measures helped deliver a robust operating profit performance.

 

Our diversified and vertically integrated business with strong brands, supportive partners and an experienced management team helped deliver encouraging results during the first half-year of the 2022 reporting period.

 

Strategic focus

Our strategic focus remains to optimise our asset utilisation and maximise returns. We remain committed to focusing on our existing core businesses, in which we strive to be the best in class, continued divesture of non-core assets and a fit for purpose people strategy. As part of delivering on our strategic imperatives, the business will progressively turn towards capacity expansion opportunities across our business, which will see increased profitability in the medium to long term.

 

Outlook

The macroeconomic environment is expected to remain stable. The successful holding of general elections on 12 August 2021 and the resultant change in government during a peaceful transition of power has brought investor confidence and optimism. The consequent appreciation of the kwacha continued during the half year as foreign direct investment prospects improved. This coupled with high copper prices, a potential International Monetary Fund (IMF) Country program and reliable electricity supply has improved the country's economic outlook. We expect a continued slowdown in inflation and reduced interest rates. As a result, we look forward to increased economic activity translating into sustained macroeconomic stability.

 

Our strong brands will help us maintain customer loyalty while the vertically integrated business model positions us well to secure both supply and a market for our products. The future recovery in the economy and a strong management team have positioned us well for improved stakeholder value creation in the coming years.

 

The Russo-Ukraine conflict poses risks but at the same time presents opportunities for our business. The consequent rise in input costs such as fertiliser and energy could negatively impact our profitability while the rise in commodity prices, such as wheat and soya, will benefit our Cropping and Milling division.



ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CHIEF EXECUTIVE OFFICER'S REVIEW (CONTINUED)

 

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

2022
ZMW'000

2021
ZMW'000

2022
ZMW'000

2021
ZMW'000

2022
ZMW'000

2021
ZMW'000

2022
ZMW'000

2021
ZMW'000

Retail &

CCFP

2,631,327








2,367,486

 399,734

 387,745

 (303,646)

 (311,636)

 96,088

 76,109








Cropping & Milling

 

 1,382,510

 

1,032,887

 

 453,659

 

 351,679

 

 (200,580)

 

 (182,289)

 

 253,079

 

169,390










Total

 4,013,837

 3,400,373

 853,393

 739,424

(504,226)

 (493,925)

 349,167

 245,499

Less: Intra/

Inter Group

 

(1,445,157)

 

(1,249,900)








-

-

              -

-

-   

 

Sales









Central









Overhead

 (118,760)

 (90,729)

 (118,760)

 (90,729)

Group Total

 2,568,680

 2,150,473

 853,393

 739,424

(622,986)

 (584,654)

 230,407

 154,770

 

 

Table 2: Divisional financial summary in USD'000

 

USD

Revenue

Gross Profit

Overheads

Operating Profit

Division

2022
USD'000

2021
USD'000

2022
USD'000

2021
USD'000

2022
USD'000

2021
USD'000

2022
USD'000

2021
USD'000










Retail &

 151,748

 112,845

 23,053

 18,481

 (17,512)

 (14,853)

 5,541

 3,628

CCFP









Cropping & Milling

 

 79,730

 

 49,232

 

 26,162

 

16,763

 

(11,567)

 

(8,689)

 

14,595

 

 8,074










Total

 231,478

 162,077

 49,215

 35,244

 (29,079)

 (23,542)

 20,136

 11,702

Less: Intra/



 

 






Inter Group

 (83,342)

 (59,576)

Sales



Central









Overhead

 (6,849)

 (4,325)

 (6,849)

 (4,325)

Group Total

 148,136

 102,501

 49,215

 35,244

 (35,928)

 (27,867)

 13,287

 7,377

 

 



ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CHIEF EXECUTIVE OFFICER'S REVIEW (CONTINUED)

 

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

 

Retail and Cold Chain Food Products

Sales volumes came under pressure on the back of input price increases that reduced consumer spending on proteins and oils and resulting in the trading down to cheaper nutritional alternatives. The resulting strong supply situation across all protein categories necessitated price reductions in the second quarter which started to contribute to a volume recovery. March 2022 saw the outbreak of African Swine Fever in Lusaka Province which resulted in our pork processing operation being shut down and therefore started to impact on volumes. Chicken sales volumes struggled as the price of chicken products remained relatively high compared with other proteins due to sustained high feed prices.

Despite the challenges, the Retail and CCFP business registered a revenue growth of 11% above the prior year. However, higher input prices, particularly feed and fuel, resulted in margin erosion, thereby posting gross profit growth of only 3%.

The Retail and CCFP division generated an EBIT margin of 3.7% which increased by 43.9 basis points from the previous financial year to ZMW96 million (2021: ZMW76 million) in kwacha terms and grew impressively by 53% to USD5.5 million (2021: USD3.6 million) in dollar terms. Overhead spend discipline ensured strong operating profit leverage. Reduced load shedding helped lower fuel costs of running our electricity generators, which further contributed to the increased profitability.

 

Cropping and Milling (Cropping, Stockfeed and Wheat Milling)

The summer farming season started off poorly due to the delay in the onset of summer rains which impacted on summer crop yields. However, high world grain prices enabled the business to post better than expected results.

The Stockfeed milling business was a major contributor to profitability in the division due to market share gains owing to good sales and operations planning.

Revenue in the Cropping and Milling division grew by 34% in kwacha terms and 62% in USD terms, while the operating profit grew by 49% to ZMW 253 million (2021: ZMW169 million) or 81% to USD14.6 million (2021: USD8.1 million) in dollar terms. Production costs were impacted by rising costs of inputs, particularly fertiliser and other inputs.

 

 

 

 

Walter Roodt

Chief Executive Officer

 

15 June 2022

 

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2022

 


Unaudited

Audited


31 Mar 2022

31 Mar 2021

30 Sept 2021

Group

ZMW'000s

ZMW'000s

ZMW'000s

 


 

 

Revenue

2,568,680

2,150,473

4,974,351

Net profit arising from price changes in fair value of biological assets

5,273

17,242

6,651

Cost of sales

(1,720,560)

(1,428,291)

(3,510,286)

Gross profit

853,393

739,424

1,470,716

Administrative expenses

(597,097)

(554,461)

(1,150,658)

Distribution costs

(29,850)

(33,114)

(66,848)

Other income

3,961

2,921

14,120

Operating profit

230,407

154,770

267,330

Share of loss equity accounted investment

(1,287)

(915)

(3,358)

Profit from asset held for sale

10,330

-

31,949

Exchange gains/(losses) on translating foreign currency transactions and balances

113

(42,558)

23,332

Finance costs

(58,413)

(56,360)

(115,282)

Profit before taxation

181,150

54,937

203,971

Taxation charge

(33,587)

(21,846)

(35,148)

Profit/(loss) for the period from continued operations

147,563

33,091

168,823

Profit from discontinued operations

-

20,843

-

Total profit for the period

147,563

53,934

168,823





Profit/(loss) attributable to:




Equity holders of the parent

146,754

54,056

167,980

Non-controlling interest

809

(122)

                     843


147,563

53,934

168,823

Other comprehensive income




Exchange gains/(losses) on translating presentational currency

(28,156)

117,226

(286,645)

Remeasurement of net defined benefit liability

-

-

(2,813)

Revaluation of assets

-

-

192,403

Total other comprehensive income

119,407

117,226

(97,055)

Total comprehensive income for the period

119,407

171,160

71,768





Total comprehensive income for the period attributable to:




Equity holders of the parent

121,786

173,523

73,867

Non-controlling interest

(2,379)

(2,363)

(2,099)


119,407

171,160

71,768





Earnings per share

Ngwee

Ngwee

Ngwee

Basic earnings per share from continued operations

45.39

11.05

55.89

Basic earnings per share from discontinued operations

3.44

6.93

-

Total

48.83

17.98

55.89

 

 



ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2022

 


Unaudited

Audited


31 Mar 2022

31 Mar 2021

30 Sept 2021

Group

USD'000s

USD'000s

USD'000s

Revenue

148,136

102,501

235,528

Net proft arising from price changes in fair value of biological assets

304

822

315

Cost of sales

(99,225)

(68,079)

(166,207)

Gross profit

49,215

35,244

69,636

Administrative expenses

(34,435)

(26,428)

(54,482)

Distribution costs

(1,721)

(1,578)

(3,165)

Other income

228

139

669

Operating profit

13,287

7,377

12,658

Share of loss equity accounted investment

(74)

(44)

(160)

Profit from asset held for sale

596

-

1,513

Exchange gains/(losses) on translating foreign currency transactions and balances

7

(2,029)

1,105

Finance costs

(3,369)

(2,686)

(5,458)

Profit before taxation

10,447

2,618

9,658

Taxation charge

(1,937)

(1,041)

(1,663)

Profit/(loss) for the period from continued operations

8,510

1,577

7,995

Profit from asset held for sale

-

993

-

Total profit for the period

8,510

2,570

7,995





 Profit/(loss) attributable to:




Equity holders of the parent

8,463

2,577

7,955

Non-controlling interest

47

(7)

40


8,510

2,570

7,995

Other comprehensive income




Exchange (losses)/gains on translating presentational currency

(18,552)

(11,265)

25,338

Remeasurement of net defined benefit liability

-

-

(133)

Revaluation of assets

-

-

9,110

Total other comprehensive income

(18,552)

(11,265)

34,315

Total comprehensive income for the period

(10,042)

(8,695)

42,310





Total comprehensive income for the period attributable to:




Equity holders of the parent

(9,921)

(8,581)

42,440

Non-controlling interest

(121)

(114)

(130)


(10,042)

(8,695)

42,310









Earnings per share

Cents

Cents

Cents

Basic earnings per share from continued operations

2.62

0.53

2.65

Basic earnings per share from discontinued operations

0.20

0.33

-

Total

2.82

0.86

2.65

 

 


ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2022

 


Share capital

 

Share premium

 

Preference share capital

 

Revaluation reserve

 

Foreign exchange

translation reserve

 

Retained earnings

 

Total attributable to owners of the parent

 

Non-controlling interest

 

Total equity

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

At 1 October 2020

3,006


1,125,012


1,000


1,167,713


1,003,834


470,174


3,770,739


(520)


3,770,219

Loss for the period

-


-


-


-


-


54,056


54,056


(122)


53,934

Transfer of surplus depreciation

-


-


-


(23,141)


-


23,141


-


-


-

Other comprehensive income:


















Exchange gains on translating presentational currency

        -


            -


          -


             -


   119,467


           -


   119,467


(2,241)


117,226

Total comprehensive income for the period

        -


            -


          -


  (23,141))


  119,467


  77,197


   173,523


         (2,363)


  171,160

At 31 March 2021

 3,006


1,125,012


   1,000


1,144,572


 1,123,301


547,371


3,944,262


 (2,883)


3,941,379

Profit for the period

-


-


-


-


-


113,924


113,924


965


114,889

Transfer of surplus depreciation

-


-


-


(21,236)


-


21,236


-


-


-

Other comprehensive income


















Revaluation

-


-


-


192,403


-


-


192,403


-


192,403

Remeasurement of net defined benefit liability

-


-


-


-


-


(2,813)


(2,813)


-


(2,813)

Exchange gains on translating presentational currency

          -


             -


           -


            -


(403,170)


             -


(403,170)


       (701)


(403,871)

Total comprehensive income for the period

          -


             -


            -


 171,167


(403,170)


  132,347


(99,656)


        264


(99,392)

At 30 September 2021

    3,006


1,125,012


     1,000


1,315,739


720,131


679,718


3,844,606


   (2,619)


3,841,987

 


















Profit for the period

-


-


-


-


-


146,754


146,754


809


147,563

Transfer of surplus depreciation

-


-


-


(25,711)


-


25,711


-


-


-

Other comprehensive income


















Exchange gains on translating presentational currency

           -


           -


            -


         -


  (24,968)


           -


  (24,968)


   (3,188)


  (28,156)

Total comprehensive income for the period

           -


             -


            -


   (25,711)


   (24,968)


 172,465


   121,786


  (2,379)


  119,407

At 31 March 2022

    3,006


1,125,012


     1,000


1,290,028


    695,163


852,183


3,966,392


 (4,998)


3,961,394

 


















 


















 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2022

 


Share capital

Share premium

Preference share capital

Revaluation reserve

Foreign exchange

translation reserve

Retained earnings

Total attributable to owners of the parent

Non-controlling Interest

Total equity

 

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

At 1 October 2020

           449

   185,095

          100

171,271

(250,418)

80,729

187,226

(26)

187,200

Transactions with owners










Profit for the period

-

-

-

-

-

2,577

2,577

(7)

2,570

Transfer of surplus depreciation

-

-

-

(1,103)

-

1,103

-

-

-

Other comprehensive income:










Exchange losses on translating presentational currency

             -

           -

            -

            -

    (11,158)

            -

(11,158)

(107)

  (11,265)

Total comprehensive income for the period

             -

           -

            -

   (1,103)

    (11,158)

      3,680

     (8,581)

      (114)

    (8,695))

At 31 March 2021

         449

185,095

        100

  170,168

  (261,576)

    84,409

    178,645

      (140)

    178,505

Profit for the period

-

-

-

-

-

5,378

5,378

47

5,425

Transfer of surplus depreciation

-

-

-

(998)

-

998

-

-

-

Revaluation

-

-

-

9,110

-

-

9,110

-

9,110

Other comprehensive income










Remeasurement of defined benefit liability

-

-

-

-

-

(133)

(133)


(133)

Exchange gains on translating presentational currency

             -

             -

              -

             -

    36,666

            -

       36,666

    (63)

     36,603

Total comprehensive income

             -

             -

              -

      8,112

    36,666

     6,243

       51,021

      16

     51,005

At 30 September 2021

         449

  185,095

          100

  178,280

  (224,910)

   90,652

   229,666

  (156)

   229,510

 










Profit for the period

-

-

-

-

-

8,463

8,463

47

8,510

Transfer of surplus depreciation

-

-

-

(1,483)

-

1,483

-

-

-

Other comprehensive income










Exchange gains on translating presentational currency

         -

         -

        -

          -

       (18,384)

          -

  (18,384)

    (168)

(18,552)

Total comprehensive income

         -

          -

        -

 (1,483)

      (18,384)

   9,946

  (9,921)

    (121)

 (10,042)

At 31 March 2022

     449

185,095

    100

176,797

    (243,294)

 100,598

219,745

   (277)

219,468

 











ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 31 MARCH 2022


Unaudited


Audited


31 Mar 2022

 

31 Mar 2021

 

30 Sept 2021


ZMW'000s

 

ZMW'000s

 

ZMW'000s

ASSETS






Non - current assets






Goodwill

166,801


166,801


166,801

Property, plant and equipment

3,092,010


3,419,935


3,115,018

Investment in associate

39,181


42,911


40,468

Deferred tax assets

       16,305


       8,680


       9,050


  3,314,297


3,638,327


3,331,337

Current assets






Biological assets

718,383


689,646


358,997

Inventories

972,887


906,914


1,197,846

Trade and other receivables

187,309


149,606


234,076

Assets held for disposal

167,577


175,654


170,550

Amounts due from related companies

3,484


4,949


4,202

Income tax recoverable

   994


   19,800


        3,707

Cash and Cash equivalents

    226,654


     83,678


   201,539


 2,277,288


2,030,247


2,170,917

Total assets

 5,591,585

 

5,668,574

 

5,502,254

 

 

 

 

 

 

EQUITY AND LIABILITIES






Capital and reserves






Share capital

3,006


3,006


3,006

Preference share capital

1,000


1,000


1,000

Share premium

1,125,012


1,125,012


1,125,012

Reserves

2,837,374


2,815,244


2,715,588


3,966,392


3,944,262


3,844,606

Non-controlling interest

    (4,998)


    (2,883)


       (2,619)


3,961,394


3,941,379


  3,841,987

Non - current liabilities






Interest bearing liabilities

146,667


124,233


195,555

Leases

3,797


10,242


7,253

Deferred liability

7,845


10,578


8,891

Deferred taxation

   94,229


   85,041


88,056


 252,538


 230,094


299,755

Current liabilities






Interest bearing liabilities

239,231


359,159


210,709

Leases

6,012


16,446


12,418

Trade and other payables

483,404


400,006


464,103

Provisions

197,491


120,857


169,307

Taxation payable

28,864


23,940


13,771

Bank overdrafts

   422,651


   576,693


   490,204


1,377,653


1,497,101


1,360,512

Total equity and liabilities

5,591,585

 

5,668,574

 

5,502,254

 

 

               



ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 31 MARCH 2022


Unaudited


Audited


31 Mar 2022

 

31 Mar 2021

 

30 Sept 2021


USD '000s

 

USD '000s

 

USD '000s

ASSETS






Non - current assets






Goodwill

9,241


7,554


9,964

Property, plant and equipment

171,302


154,888


186,082

Investment in associate

2,170


1,943


2,417

Deferred tax asset

      903


       394


       541


183,616


164,779


199,004

Current assets 






Biological assets

39,800


31,234


21,445

Inventories

53,900


41,074


71,556

Trade and other receivables

10,377


6,776


13,983

Assets held for disposal

9,284


7,955


10,188

Amounts due from related companies

193


224


251

Income tax recoverable

55


897


         221

Cash and Cash equivalents

  12,557


  3,790


   12,039


126,166


 91,950


 129,683

Total assets

309,782

 

256,729

 

328,687

 

EQUITY AND LIABILITIES






Capital and reserves






Share capital

449


449


449

Preference share capital

100


100


100

Share premium

185,095


185,095


185,095

Reserves

  34,101


  (6,999)


   44,022


219,745


178,645


229,666

Non-controlling interest

    (277)


    (140)


    (156)


 219,468


178,505


229,510

Non - current liabilities






Interest bearing liabilities

8,126


5,626


11,682

Leases

210


464


433

Deferred liability

435


479


531

Deferred tax liability

  5,220


  3,852


  5,260


13,991


10,421


17,906

Current liabilities






Interest bearing liabilities

13,254


16,266


12,587

Leases

333


745


742

Trade and other payables

26,780


18,116


27,723

Provisions

10,941


5,474


10,113

Taxation payable

1,599


1,084


823

Bank overdrafts

 23,416


 26,118


29,283


 76,323


 67,803


81,271

Total equity and liabilities

309,782

 

256,729

 

328,687

 



 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2022



Audited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 months to

6 months to

Year to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 Mar 2022

31 Mar 2021

30 Sept 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


ZMW'000s

ZMW'000s

ZMW'000s

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash inflow/(outflow) from Operating activities




















Profit before taxation

181,150

54,937

203,971

















Finance costs

58,413

56,360

115,282

















Loss on disposal of property, plant and equipment

3,756

(1,345)

2,260

















Depreciation                                                                            

60,576

84,275

160,471

















Share of loss of equity accounted investment

1,287

915

3,358

















Profit from asset held for sale                                                  

-

20,843

-

















Fair value price adjustment on biological assets                        

(5,273)

(17,242)

(6,651)

















Defined benefits liability movement

-

-

4,473

















Defined benefits paid

-

-

(6,971)

















Net unrealised foreign exchange losses/(gains)

 10,513

  (5,345)

(19,422)

















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

310,422

193,398

456,771

















(Increase)/decrease in biological assets

(354,113)

(496,099)

(176,041)

















Decrease in inventory

224,959

196,726

(94,206)

















Decrease in trade and other receivables

46,767

(16,938)

(101,408)

















Decrease in amounts due from related companies

718

4,388

5,135

















Decrease in trade and other payables and provisions

47,485

85,868

198,415

















Increase in amount due to related companies

-

(443)

(443)

















(Decrease)/increase in deferred liability

(1,046)

(811)

-

















Income tax paid                                                                      

 (16,863)

          -

 (4,734)

















Net cash inflow/(outflow) from operating activities

 258,329

(33,911)

283,489

















 




















Investing activities




















Purchase of property, plant and equipment                                

(62,652)

(59,829)

(116,629)

















Proceeds from sale of assets

        405

     2,247

            51

















Net cash outflow from investing activities

(62,247)

(57,582)

(116,578)

 
















 




















Net cash inflow/(outflow) before financing

196,082

(91,493)

166,911

















 




















Financing  




















Long term loans repaid

(52,436)

(81,925)

(262,705)

















Receipt from term loans

-

-

220,000

















Repayment of short term funding

(158,471)

(228,246)

(477,906)

















Receipt of short term funding

101,000

232,646

449,619

















Leases repaid

(9,862)

(16,321)

(32,513)

















Finance costs including discontinued operations

  (58,413)

  (56,360)

(115,282)

















Net cash outflow from financing

(178,182)

(150,206)

(218,787)





































Increase/(decrease) in cash and cash equivalents

17,900

(241,699)

(51,876)

















Cash and cash equivalents at beginning of period

(288,665)

(236,909)

(236,909)

















Effects of exchange rate changes on the balance of




















cash held in foreign currencies

    74,768

  (14,407)

        120

















Cash and cash equivalents at end of period

(195,997)

(493,015)

(288,665)

















Represented by:




















Cash in hand and at bank                                                         

226,654

83,678

201,539

















Bank overdrafts                                                                      

(422,651)

(576,693)

(490,204)


















(195,997)

(493,015)

(288,665)

















ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2022


Unaudited


Audited

                                                                                            

6 months to


6 months to


Year to


31 Mar 2022

 

31 Mar 2021

 

30 Sept 2021


USD'000s

 

USD'000s

 

USD'000s

Cash inflow/(outflow) from/(on) operating activities






Profit before taxation                                 

10,447


2,618


9,658

Finance costs

3,369


2,686


5,458

Loss on disposal of property, plant and equipment

217


(64)


107

Depreciation                                                                             

3,493


4,017


7,598

Share of loss of equity accounted investment

74


44


160

Profit from discontinued operations                                              

-


993


-

Fair value price adjustment on biological assets                         

(304)


(822)


(315)

Defined benefits liability movement

-


-


212

Defined benefits paid

-




(330)

Net unrealised foreign exchange losses/(gains)

     606


    (255)


  (920)

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

17,902

 


9,217

 


21,628

 

Increase/(decrease) in biological assets

(20,422)


(23,646)


(8,335)

Decrease in inventory

12,973


9,377


(4,461)

Decrease in trade and other receivables

2,697


(807)


(4,802)

Decrease in amounts due from related companies

41


209


243

(Decrease) in trade and other payables

2,738


4,093


9,395

Increase in amount due to related companies

-


(21)


(21)

(Decrease) in deferred liability

(60)


(39)


-

Income tax paid                                                                      

   (972)


         -


   (224)

Net cash inflow/(outflow) from operating activities

 14,897

 

(1,617)

 

13,423

 






Investing activities






Purchase of property, plant and equipment                                

(3,613)


(2,852)


(5,522)

Proceeds from sale of assets

         23


       107


         2

Net cash outflow from investing activities

  (3,590)

 

 (2,745)

 

(5,520)

Net cash inflow/(outflow) before financing

   11,307

 

 (4,362)

 

  7,903

Financing  






Long term loans repaid

(3,024)


(3,820)


(12,439)

Receipt from term loans

-


-


10,417

Repayment of short term funding

(9,139)


(10,773)


(22,628)

Receipt of short term funding

5,825


10,952


21,289

Lease finance repaid

(569)


(778)


(1,539)

Finance costs

   (3,369)


 (2,686)


  (5,458)

Net cash outflow from financing activities

 (10,276)

 

 (7,105)

 

(10,358)

Increase/(decrease) in cash and cash equivalents

1,031

 

(11,467)

 

(2,455)

Cash and cash equivalents at beginning of period

(17,244)


(11,763)


(11,763)

Effects of exchange rate changes on the balance of






  cash held in foreign currencies

      5,354


       902


(3,026)

Cash and cash equivalents at end of period

  (10,859)

 

(22,328)

 

(17,244)

Represented by:






Cash in hand and at bank                                                          

12,557


3,790


12,039

Bank overdrafts                                                                         

(23,416)


(26,118)


(29,283)


(10,859)

 

(22,328)

 

(17,244)

A copy of the Interim Report will shortly be available to view on the Company's website at www.zambeefplc.com/aim-rule-26/

 

 

END

 

 

 

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