Zambia: Zambeef announces a record k101.7 million interim profit

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FOOD processing Zambeef

Products Plc has announced a

record K101.7 million net profit

after tax in its interim results for

the six month period ended March

2016.

Operating profit increased threefold

to K155.3 million from the

previous K51.4 million in 2015

and group revenue increased by 70

percent to K1.122 billion from the

previous K660 million in 2015.

Zambeef Joint Chief Executive

Officers Dr Carl Irwin and Francis

Grogan attributed the improved

operational performance to the

company’s growing cold chain

division coupled with strict cost

control and an aggressive

expansion of its retail network,

particularly with the success of its

new macro outlets.

“This has been the highest

recorded profit after tax for an

interim result in the history of

Zambeef. The company has seen

significant growth over the past

year by staying true to its core

business of production, processing,

distribution and retailing of its

products. Our focus is to ensure

that we keep the engine room that

is our cold chain division running,”

said Dr Irwin in announcing the

results to shareholders in Lusaka

this week.

The growth of Zambeef’s cold

chain division has been propelled

by the introduction of its new

macro-outlets model, which is

proving to be a success in pulling

customers. There are currently six

such outlets with five planned for

the remainder of the year and

further additions in the future.

“The macro-outlets model has

proven a success for Zambeef with

customers appreciating the secure

parking space, environment, and

availability and presentation of our

products,” said Mr Grogan.

The group continues to benefit

from its concession agreement

with Shoprite for in-store Meat

Market butcheries in Zambia and

West Africa. The supermarket has

expanded with seven new stores in

Zambia and West Africa and a

further seven stores are due to

open before the end of the year.

Zambeef has continued to invest in

its operations with the K84 million

Zamhatch breeder farm and new

stockfeed facility set to eliminate

supply bottlenecks in the egg,

pork, beef and chicken divisions,

and expanding the retail store

network. Zambeef’s Novatek

stockfeed division continues to

grow with exports to Malawi,

Zimbabwe, the DRC, Botswana and

most recently Mozambique.

The food company’s cropping

division experienced good yields,

despite the delay in the start of the

rainy season, with record yields on

its soyabean crop; an indication of

the quality of management of

farming assets on the part of

Zambeef, said Dr Irwin.

“Over all it has been a good six

months with all divisions

performing well, both in kwacha

and volume terms. It a huge

tribute to Zambeef staff in light of

the challenges in the macro

economics. We have a very

committed staff dedicated to bring

Zambeef forward,” he added.

Commenting on these results,

Zambeef Board Chairman Dr Jacob

Mwanza commented:

“The excellent interim operating

performance, achieved within a

challenging macro-economic

environment, is a tribute to the

hard work, skill, dedication and

professionalism of all management

and staff. I would like to register

our gratitude. Their efforts, driven

by the board’s clear strategic

focus, will enable Zambeef to

achieve its vision of becoming a

major provider of cold chain food

products to Zambia and the

region. With the strong focus on

the retailing operations, Zambeef

is confident that this robust

performance will continue,

demonstrating the resilience of the

Group’s business model. As a

consequence of this strong

operational performance, the Board

is confident of meeting full year

expectations.”

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