Zambeef Products plc

 

("Zambeef", the "Company" or the "Group")  

 

Full-year results for the year ended 30 September 2022

 

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 2022.

 

Financial Highlights

Figures in 000's		2022	2021	%		2022	2021	%
		ZMW	ZMW			USD	USD
Revenue		5,394,761	4,974,351	8%		314,014	235,528		33%
Cost of sales		(3,761,575)	(3,503,635)	7%		(218,951)	(165,891)		32%
Gross profit		1,633,186	1,470,716	11%		95,063	69,637		37%
Administrative expenses		(1,234,271)	(1,154,163)	7%		(71,843)	(54,648)		31%
Distribution Expenses		(65,596)	(66,848)	-2%		(3,818)	(3,165)		21%
Impairment of goodwill		(141,786)	-	100%		(8,253)	-		100%
Net impairment losses on financial assets		(17,869)	(3,306)	441%		(1,040)	(156)		564%
Operating profit		173,664	246,399	-30%		10,108	11,667		-34%
Share of loss equity accounted investment		(3,503)	(3,358)	4%		(204)	(160)		28%
Net finance costs		(114,997)	(71,019)	62%		(6,694)	(3,363)		99%
Profit before taxation		55,164	172,022	-68%		3,210	8,145		-61%
Taxation charge		(63,283)	(31,953)	98%		(3,684)	(1,513)		143%
Group income for the year from continuing operations		(8,119)	140,069	-106%		(474)	6,481		-107%
Profit/(Loss) from discontinued operations*		39,697	28,754	38%		2,311	1,364		70%
Group income for the year		31,578	168,823	-81%		1,837	7,994	-77%
Normalised EBITDA**		514,791	456,619	13%		29,965	21,620	39%
Gross Profit Margin		30.27%	29.57%			30.27%	29.57%
EBITDA Margin		9.54%	9.18%			9.54%	9.18%
Debt/Equity (Gearing)		20.18%	19.39%			20.18%	19.39%
Debt-To-EBITDA		1.45	1.56	-7%		1.57	1.97	-20%

 

 

                  *Profit from discontinued operations relate to profits from the Chiawa farm assets that are currently held for held forsale

 

** Normalised 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

 

The financial year ended 30 September 2022 saw macroeconomic fundamentals stabilise. The exchange rate remained largely stable and the inflation rate steadily reduced. However, constrained consumer spending negatively impacted volume growth in our Retail and Cold Chain Food Products, particularly in the first half of the financial year. In addition, the period saw the outbreaks of animal diseases such as contagious bovine pleuropneumonia(CBPP) and african swine fever(ASF), which respectively impacted our beef and pork divisions.

 

Despite these headwinds, performance in Cropping, Milling, and Stockfeed enabled the Group to achieve normalised EBITDA** in line with market expectations. This was mainly due to high grain prices, market share gains, and cost containment. The Group's performance demonstrates its ability to remain resilient in the evolving market and illustrates the strengths of its vertically integrated business model which is key to creating sustainable long-term shareholder value.

                                                                                                                                                        

Despite the myriad of country and global deterrents directly affecting the business, through resilient financial and operational performance, Zambeef established itself, once again, as a dependable asset for our shareholders.

 

The Group remains committed to its strategic imperatives of focussing on core business and divestment from non-core assets to free up resources. As such, the Group exited pig and layer farming during the financial year.

 

KEY FINANCIAL HIGHLIGHTS

 

Revenue and gross profit increased by 8.5% and 11% respectively, in Kwacha. The marginal top line growth was mainly on account of volume pressures in Retail and cold chain food products.

 

The period saw a rise in input commodity prices, particularly crude oil, fertilisers and grain, escalated as a consequence of the Russia - Ukraine conflict. The resultant increase in input costs in the Cold chain business was offset by higher grain prices in Cropping. The higher grain prices in Cropping coupled with strong margins in the Stockfeed business drove the Group's performance.

 

The Group delivered a profit before tax of ZMW55 million (USD3 million), representing a decline of 68% in Kwacha (61% in US dollar terms), compared to ZMW172 million (USD8 million) in the prior year. The above results posted are after the recognition of goodwill impairment amounting to ZMW141.8 million on the fair value of Zamchick Limited's asset. Adjusting for this non-cash impairment, the Group delivered a profit before tax of ZMW197 million (USD11.5 million) representing a growth of 15%.

 

A higher tax expense and goodwill impairment loss resulted in profit after tax being K31.5 million (2021: K168.8 million).

 

STRATEGY

 

The Board remains committed to achieving the Group's strategic priorities while navigating the seasonal market and economic challenges. The following are the pillars on which the five-year strategy is underpinned:

 

§ Focus and strengthen our core business by investing in capacity and growing 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

 

 

Copies of Zambeef's Annual Report and Accounts for the year ended 30 September 2022 and Notice of AGM are now being sent to those shareholders registered to receive hard copies, and will also shortly today be available on the Group's website. The AGM will be held virtually on Tuesday 27 December 2022 at 10:00 a.m. CAT. The Notice of AGM includes instructions for virtual attendance at the meeting.

For further information, please visit www.zambeefplc.com or contact: Zambeef Products plc Tel:  +260 (0) 211 369003 Faith Mukutu , Chief Executive Officer M'boo Mumba, Chief Financial Officer finnCap Ltd (Nominated Adviser and Broker) Tel: +44 (0) 20 7220 0500 Ed Frisby/Abigail Kelly (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, 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 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,

I have the pleasure of presenting my report to you for the financial year ending 30^th September 2022.

The financial year saw an improvement in economic sentiment following the successful holding of the general election in August 2021 and the peaceful transition of government. The Kwacha appreciated significantly and remained stable during the period. However, global economic headwinds contributed to the disruption of an otherwise positive trajectory for Zambia's macroeconomic environment.  The spill-over effects of the Covid-19 pandemic related supply disruptions on international trade, added layers of production complexities to the business as lead times for imported goods increased. Commodity prices, particularly crude oil, fertilisers and grain, escalated as a result of the Russia - Ukraine conflict. In addition, the period saw the outbreak of animal diseases such as, the African Swine Fever and Contagious Bovine Pleuropneumonia (CBPP) which respectively impacted our pork and beef businesses.

Despite the headwinds, management worked tirelessly to keep the business performing by focusing on enhanced bio-security risk, cost management, revenue maximisation and market share growth. As a result, the business posted positive financial results and is well-positioned on the path to actualising its short to medium-term strategy.

The Group's performance demonstrates its ability to remain resilient in the evolving market and illustrates the strengths of its vertically integrated business model, which is key to creating sustainable long-term shareholder value.

 

Strategy

The Group's medium-term strategy is centred around optimising existing assets and investing in capacity for the future. It is with this in mind that the Group announced a US$100 million expansion programme during the year. This investment strategy is expected to increase the Groups various value chain capacities, and deliver developmental impact to the Zambian economy through job creation, increased tax revenue and supporting ancillary businesses such as small-scale farmers and small to medium-sized businesses. The expansion is expected to double the Mpongwe Farm row cropping capacity, and also to deliver significantly improved production efficiency and capacity through the downstream food value chains. The first crop from the expanded cropping operations is expected to be planted in the 2023/2024 financial with capacity upgrades to milling and processing facilities being run in parallel.

As part of the $100m expansion plan, we remain committed to maintaining a responsible business by building on the Environmental, Social and Governance (ESG) agenda. Therefore, the investment will see an improvement in the Group's carbon footprint and livestock health and welfare.

As part of the divesture of non-core and low-returning assets, the Group exited from pig farming, pullet rearing and egg production during the year. Chiawa farm remains an asset held for sale. These divestitures will enable the business to focus on becoming best in class and improve the Group's profitability.

 

The Board remains committed to achieving the Group's strategic priorities while navigating the seasonal market and economic challenges. The following are the pillars on which the five-year strategy is underpinned:

 

§ Focus and strengthen our core business by investing in capacity and growing 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

 

The Economic Environment

 

Despite the year 2022 being the second year since the outbreak of Covid-19, its impact on the economy compared to the prior year reduced tremendously due to the success of governments vaccination campaigns and the public's adherence to public health measures.

 

The economy rallied in comparison to the corresponding period under review and saw stability in macroeconomic fundamentals. The ZMW/USD exchange rate averaged 17.18 down by 19% compared to 21.12 averaged in the previous corresponding period. The local currency has seen a steady appreciation since the start of the financial year despite moments of volatility. A tight monetary policy which saw the Monetary Policy Rate remain stable at 9%, relatively high copper prices and market confidence arising from the peaceful transition of power have been key in keeping the currency stable.

 

Inflation reduced significantly during the period under review, closing at 9.9% compared to 22.1% in the previous year. This drop came as a result of currency appreciation and a reduction in food inflation despite the escalation in diesel and petrol pump prices. Customers disposable income remained under stress as the effect of stable macroeconomic fundamentals had not yet fully trickled down to the consumers. Inflation for the period under review averaged 13.4% compared to 21.7% for the previous corresponding period.

 

Outlook

 

We anticipate macro-economic stability to continue, supported by improved investor sentiment leading to increased foreign direct investment. The Kwacha is also expected to remain stable across the 2023 financial year. The copper prices, which is a major foreign exchange earner for the country, is expected to stabilise at current levels as the worst effects of the manufacturing slowdown have tapered off. The inflation rate is expected to remain stable, although the outcome of the Russia - Ukrainian tensions could lead to further rises in global food and energy prices which still pose a risk of higher inflation locally. Of key concern is the emergence of escalating cost of funding as foreign currency liquidity migrates to the United States of America and the United Kingdom, where interest rates are rising.

 

Executive Management Changes

 

I am pleased to advise that on 1 July 2022, Ms Faith Mukutu was appointed Chief Executive Officer. She succeeded Mr Walter Roodt who served as Chief Executive Officer since January 2020. Mr Roodt will continue full-time with the Company focussing on Large livestock and Strategic Projects in an executive capacity to support the expansion programme referred to above. To ensure a smooth transition, Walter remained on the Board until 1^st December, 2022. 

 

The appointment of Faith represents the confidence the Board has in her ability to lead the business through the new phase. Since joining the Group in September 2019, as the Chief Financial Officer, Faith has been instrumental in driving the realisation of commercial value from our business having introduced a cost control culture, restructuring the group balance sheet and streamlining finance operations and reporting.

 

I am delighted that at the date of this report, the Board had announced the appointment of M'boo John Mumba as Chief Financial Officer, Mboo has also been appointed as an Executive Director of the Board.

 

M'boo takes on the role, following the promotion of Faith Mukutu, to Chief Executive Officer (CEO) on 1 July 2022. He joined the Zambeef Group in May 2020 as Project Manager before he took up the role of Group Head of Treasury and Administration. He has brought to the Company skills which combine industry, financial and banking experience of more than 16 years. His established professional background and valuable expertise is an asset to the Group.

 

 

Acknowledgement

 

On behalf of the Company and the Board, I would like to express my sincere gratitude to Messrs; 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 am also indebted to Walter Roodt who, after his reassignment to a new role remained on the Board for a smooth transition.  He has played a significant role in the Group and we all wish him all the very best in his new role.

 

I also thank my fellow board members for steering the Group through the year and positioning it for the next phase of growth. To our management and staff, I express my gratitude 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 M Mundashi

Chairman

 

 

CHIEF EXECUTIVE OFFICER'S REVIEW

 

Overview 

It is my pleasure to give my inaugural report as Chief Executive Officer, to you, our esteemed shareholders. I wish to thank the Board for their confidence in my abilities to lead your Company through the next exciting phase of our growth strategy. I also wish to thank Mr Walter Roodt, my predecessor, for steering the Group through the challenging times of the last two years.

 

Without a doubt, this was another challenging year characterised by a difficult trading environment driven largely by reduced consumer spending and increased production and input costs, despite the stabilisation of the macroeconomic environment. Notwithstanding the headwinds, the Group's results exceeded market expectations, particularly the outstanding performance in the Cropping and Milling division.

 

Pressure on volumes and margins in the Retail and Cold Chain Food Products (CCFP) division on the back of reduced consumer spending negatively impacted performance, particularly in the first half of the year. An increase in raw material input costs, such as soya beans, precipitated a rise in feed prices, which affected production costs in our livestock business. In addition, the outbreak of African Swine Fever, over six weeks in Lusaka and in other parts of the country, affected the pork business negatively. Further, the outbreak of Contagious Bovine Pleuropneumonia (CBPP), a disease affecting cattle negatively affected our Beef business; with a cost to Company of K20.7 million.

 

The second half of the year saw volume recovery in volumes in the Retail and CCFP segments driven by price moderation. This coupled with cost control, enabled a recovery from the subdued first-half year performance.

 

Despite the challenges noted above, the Group posted strong results during the year in line with expectations mainly due to buoyed performance in our Cropping and Milling division. 

 

The Group delivered a profit before tax of ZMW55 million (USD3 million), representing a decline of 68% in Kwacha (61% in US dollar terms), compared to ZMW172 million (USD8 million) in the prior year. The above results posted are after the recognition of goodwill impairment amounting to ZMW142 million (USD8.3m) on the fair value of Zamchick Limited assets. Adjusting for this non-cash impairment, the Group delivered a profit before tax of ZMW197 million (USD11.5 million) representing a growth of 15%.

 

The Group generated revenue of ZMW5.4 billion (USD314 million) and achieved a gross profit of ZMW1.6 billion (USD95 million), representing 8% and 11% above the prior year in kwacha terms, and up by 33% and 37% in US dollars, respectively.

 

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

 

Strategic focus

 

Our strategic focus is to optimise existing assets and invest in the future. We remain committed to our strategy of focussing on our core businesses, in which we strive to be the best in class. The continued divestiture of non-core assets enables us to free up cash to invest in core businesses and therefore, deliver shareholder value. As part of delivering on our strategic imperatives and as announced during the financial year under review, our $100M expansion strategy will see increased profitability in the medium to long term, thus delivering increased value to our shareholders and positively impacting the communities in which we operate. As of 30^th September 2022, a total of $7.3m out the $100m expansion plan was either spent or committed by the business.

Outlook

 

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 anticipated future recovery in the economy and a strong management team have positioned us well for shareholder value maximisation in the coming years. The Group will capitalise on the positive economic outlook and invest for the future in anticipation of improved consumer spending.

 

The Russia-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. Higher soya and maize prices would translate into higher stock feed costs which would negatively impact the profitability of our Retail and Cold Chain Food products business.

 

Consolidating our balance sheet through disposals of low-returning assets and expanding capacity remains a key focus to enhance shareholder value. In the coming years, the Group is set to make significant strides in our US$100 million expansion program with the Cropping and Milling segment set for expansion in the 2022/2023 financial year.

 

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

 

 

Table 2: Divisional financial summary in USD'000

 

 

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

 

Retail and Cold Chain Food Products (CCFP)

 

Sales volumes came under pressure on the back of reduced consumer spending on proteins and oils, resulting from the trading down to cheaper nutritional alternatives. A price moderation strategy across all protein categories led to volume recovery in the second half of the year. The period saw the outbreak of African Swine Fever in Lusaka and other Provinces, which resulted in our pork processing operation being shut down and consequently impacted operations during the period of the animal movement ban. The year also saw the outbreak of CBPP which negatively impacted our beef business. Chicken sales volumes struggled as the price of chicken products remained relatively high compared with other proteins due to sustained high stock feed prices.

 

Given the above challenges, the Retail and CCFP business registered a revenue decline of 4% compared to the prior year. Higher input prices, particularly feed and fuel, resulted in a reduction of gross profit by 13% from the prior year.

 

The Retail and CCFP division generated an EBIT margin of 2.8% which decreased by 6.6% from the previous financial year to ZMW88 million (2021: ZMW216 million) in Kwacha terms.

 

Cropping and Milling (Cropping, Stockfeed, and Wheat Milling)

 

The division registered strong results owing to growth in stock feed revenues and higher grain prices in Cropping, despite lower soya bean yields across the country due to sporadic rainfall patterns. 

 

The stockfeed business registered good growth due to improved supply chain planning. The export ban that existed in the first quarter of the year impacted export sales with an increase in demand for feed being noticeable in the period after the lifting of the ban.

 

The Cropping business saw margins improve on the back of higher grain prices despite an escalation in input costs, particularly fertiliser.

 

Revenue in the Cropping and Milling division grew by 18% in Kwacha terms and 46% in USD terms, while the operating profit grew by 70% to ZMW 449 million (2021: ZMW265 million) and by over 100% to USD26 million (2021: USD13 million) in dollar terms.

Finally, I would like to thank our Board of Directors and all staff and partners of Zambeef for their contribution to the continued success of the Group. I look forward to what we will be able to achieve in the coming year as we continue to implement our growth strategy.

 

 

Faith Mukutu

Chief Executive Officer

 

 

 

Zambeef Products Plc and its Subsidiaries

Statement of profit or loss and other comprehensive income

 

	Notes	Group		Company
		2022	2021	2022	2021
		K'000	K'000	K'000	K'000
Revenue from contracts with customers	5(ii)	5,394,761	4,974,351	3,361,428	2,880,062
Change in fair value of biological assets	16	349,462	828,361	338,052	545,343
Cost of sales of goods	7	(4,111,037)	(4,331,996)	(2,826,242)	(2,630,914)
Gross profit		1,633,186	1,470,716	873,238	794,491
Other income/(expenses)	6	2,491	(8,445)	17,325	(10,410)
Net impairment losses on financial assets	4(b)	(17,869)	(3,306)	(7,876)	(1,188)
Impairment of goodwill	13	(141,786)	-	-	-
Impairment of investment in subsidiary	14(a)	-	-	(141,786)	-
Distribution expenses	7	(65,596)	(66,848)	(67,118)	-
Administrative expenses	7	(1,236,762)	(1,145,718)	(658,635)	(636,152)
Operating profit		173,664	246,399	15,148	146,741
Share of loss from equity investment	15(ii)	(3,503)	(3,358)	(3,503)	(3,358)
Finance income	8	3,541	45,897	3,534	56,792
Finance costs	8	(118,538)	(116,916)	(91,009)	(84,980)
Profit/(loss) before income tax		55,164	172,022	(75,830)	115,195
Income tax expense - continuing operations	10	(63,283)	(31,953)	(27,799)	(12,600)
(Loss)/profit from continuing operations		(8,119)	140,069	(103,629)	102,595
Profit from discontinued operations after tax	20(i)	39,697	28,754	39,697	28,754
Profit/(loss) for the year		31,578	168,823	(63,932)	131,349
Profit/(loss) attributable to:
Owners of Zambeef Products PLC		29,152	167,980	(63,932)	131,349
Non-controlling interests		2,426	843	-	-
		31,578	168,823	(63,932)	131,349
Other comprehensive income:
Items that maybe reclassified to profit or loss
Translation differences - foreign operations	22	(16,320)	(14,710)	-	-
Translation differences - Mpongwe Farms	22	(10,847)	(271,935)	(10,847)	(271,935)
Items not reclassified to profit or loss
Revaluation surplus	23	-	192,403	-	40,125
Actuarial remeasurement losses	26(i)	(3,150)	(2,813)	(1,058)	(1,408)
Deferred income tax*	25	6,394	21,199	3,018	826
Other comprehensive income for the year		(23,923)	(75,856)	(8,887)	(232,392)
Total comprehensive income for the year		7,655	92,967	(72,819)	(101,043)

 

 

 

Zambeef Products Plc and its Subsidiaries

Statement of profit or loss and other comprehensive income

 

	Notes	Group		Company
		2022	2021	2022	2021
		K'000	K'000	K'000	K'000
Total comprehensive income for the period is attributable to:
Owners of Zambeef Products Plc		4,970	95,066	(72,819)	(73,849)
Non-controlling interests		2,685	(2,099)	-	-
		7,655	92,967	(72,819)	(73,849)
Basic earnings per share		Ngwee	Ngwee	Ngwee	Ngwee
Continued operations	30	(3.51)	46.60	(34.46)	34.13
Discontinued operations	30	13.21	9.57	13.21	9.57
Total basic earnings per share		9.70	56.17	(21.25)	43.70
Diluted earnings per share
Continued operations	30	(2.63)	34.96	(25.85)	25.61
Discontinued operations	30	9.91	7.18	9.91	7.18
Total diluted earnings per share		7.28	42.14	(15.94)	32.79

 

 

 

Zambeef Products Plc and its Subsidiaries

Consolidated Statement of financial position

 

		30-Sept-22	Restated:30-Sept-21	Restated:1-Oct-20
ASSETS	Notes	K'000	K'000	K'000
Non-current assets
Property, plant and equipment	11	3,134,611	3,071,735	3,213,319
Right of use assets	12(a)	32,389	43,283	51,186
Goodwill	13	25,015	166,801	166,801
Investment in associate	15	36,965	40,468	43,826
Biological assets	16	86,592	71,365	62,380
		3,315,572	3,393,652	3,537,512
Current assets
Biological assets	16	234,104	287,632	113,925
Inventories	17	1,441,912	1,197,846	1,103,640
Trade and other receivables	18	289,300	238,278	142,005
Cash and cash equivalents	19	223,972	201,539	111,136
Assets classified as held for sale	20(iii)	170,091	170,550	175,654
Current income tax asset	10	-	-	1,743
		2,359,379	2,095,845	1,648,103
Total assets		5,674,951	5,489,497	5,185,615
EQUITY
Share capital	21	3,006	3,006	3,006
Share premium	21	1,125,012	1,125,012	1,125,012
Preference share capital	21	1,000	1,000	1,000
Foreign currency translation reserve	22	692,705	720,131	1,003,834
Revaluation reserve*	23	1,113,119	1,160,653	1,034,388
Retained earnings*		758,489	678,559	468,453
Attributable to owners of parent entity		3,693,331	3,688,361	3,635,693
Non-controlling interests (NCI)		66	(2,619)	(520)
		3,693,397	3,685,742	3,635,173
LIBILITIES
Non-current liabilities
Lease liabilities	12(b)	12,597	7,253	19,750
Borrowings	24	426,222	195,555	190,218
Deferred income tax*	25	223,217	235,250	195,444
Defined benefit obligations	26	3,654	8,891	11,389
		665,690	446,949	416,801
Current liabilities
Lease liabilities	12(b)	5,046	12,418	23,259
Borrowings	24	525,325	700,913	674,944
Trade and other payables	27	649,573	514,205	337,766
Contract liabilities	28	97,400	119,206	97,672
Current income tax	10	38,520	10,064	-
		1,315,864	1,356,806	1,133,641
Total equity and liabilities		5,674,951	5,489,497	5,185,615

 

 

 

Zambeef Products Plc and its Subsidiaries

Company statement of financial position

 

		30-Sept-22	Restated:30-Sept-21	Restated:1-Oct-20
ASSETS	Notes	K'000	K'000	K'000
Non-current assets
Property, plant and equipment	11	2,158,021	2,143,680	2,453,920
Right of use assets	12(a)	23,591	22,803	22,474
Investment in subsidiaries	14	104,020	245,807	245,807
Investment in associate	15	36,965	40,468	43,826
Biological assets	16	86,592	71,365	62,380
		2,409,189	2,524,123	2,828,407
Current assets
Biological assets	16	183,061	236,583	77,121
Inventories	17	977,667	772,972	814,081
Trade and other receivables	18	786,517	872,256	1,370,672
Cash and cash equivalents	19	136,149	113,193	12,645
Assets classified as held for sale	20(iii)	170,091	170,550	175,654
Current income tax asset	10	-	2,520	565
		2,253,485	2,168,074	2,450,738
Total assets		4,662,674	4,692,197	5,279,145
EQUITY
Share capital	21	3,006	3,006	3,006
Share premium	21	1,125,012	1,125,012	1,125,012
Preference share capital	21	1,000	1,000	1,000
Foreign currency translation reserve	22	687,048	697,895	969,830
Revaluation reserve	23	712,279	739,522	745,684
Retained earnings		739,665	774,394	597,340
		3,268,010	3,340,829	3,441,872
LIABILITIES
Non-current liabilities
Lease liabilities	12(b)	5,354	1,873	8,172
Borrowings	24	426,222	195,555	190,218
Deferred income tax	25	140,280	138,117	124,190
Defined benefit obligations	26	366	2,124	3,356
		572,222	337,669	325,936
Current liabilities
Lease liabilities	12(b)	4,878	6,597	14,461
Borrowings	24	337,669	517,126	497,721
Trade and other payables	27	367,814	395,491	906,879
Contract liabilities	28	97,400	94,485	92,276
Current income tax	10	14,681	-	-
		822,442	1,013,699	1,511,337
Total equity and liabilities		4,662,674	4,692,197	5,279,145