Food giant unveils latest financial results
Zambeef Products is on track with the growth plans it set out in 2014 to grow business and increase volumes while maintaining margins, the company unveiled at the presentation of its annual results to shareholders today (November 25).
The company delivered strong performance, recording 10.8 per cent growth in cold chain sales volumes during the year to September 30, 2016. Profit after tax stood at K157.4 million compared with a loss of K50 million for the same period last year.
Joint Chief Executive Officers Dr Carl Irwin and Francis Grogan attributed the positive growth to increasing volumes, maintaining margins and effective cost management. A reduction in debt gearing as a result of the US$65 million capital raised from CDC Group also helped company performance.
“We set out a clear strategy in 2014 which was to reduce gearing and concentrate on what we believe to what we’re best in; our retail business and cold chain division which is the engine room that drives our growth,” said Dr Irwin.
Zambeef further recorded a decrease in administrative costs as a percentage of turnover improved from 28.2 per cent 2015 to 25.7 per cent in 2016 while Group debt reduced by 23.6 per cent from USD72 million 2015 to USD55 million 2016 resulting in a reduction of gearing to 26 per cent in 2016 from 60.3 per cent in 2015.
“Zambeef has ended the financial year in a strong position. Through the efficient delivery of our strategic priorities, a platform has been created from which to continue sustainable long term growth. The balance sheet has been significantly strengthened as a result of CDC having made a substantial investment in the Group,” said Zambeef Chairman Dr Jacob Mwanza.
Zambeef successfully completed an equity investment amounting US$65 million from the CDC Group which saw the company take full control of the Zamhatch operations in Mpongwe. The investment has allowed Zambeef to focus its investment in growing its business, accelerating the roll-out of its new macro stores and expand its cold chain foods production capacity in order to meet the growing demand for its products, both in Zambia and in the surrounding SADC/COMESA regions.
“Our performance in the Cold Chain Food Products division for the year remains strong and this has been achieved through a market-driven strategy involving a continued roll out of new macro outlets across the country. Our commitment moving forward is to ensure that all our products are on our shelves, all the time for our customers,” said Mr Grogan.
Zambeef grew its total retail network from 154 to 171 outlets across Zambia as well as its West Africa operations in Nigeria and Ghana. An additional 10 new Macro and Novatek outlets are scheduled for a roll out over the next four years with a further 8 instore butcheries through its partnership with Shoprite.
“We are entering into a new era for Zambeef, and I am confident that the Group is well positioned to take advantage of the opportunities that lie ahead,” concluded Dr Mwanza
Good to see a clean butchery in Kanyama, otherwise people would still be buying rotten meat full of fly’s and maggots from the streets
Kachema is the way to go,haters kunya amanshi.
HH is happy that he can double supply.
We pray Zambeef won’t be shut down like The Post Newspaper.
hh has no shares in zambeef. only morebeef
So ba Zambeeef tell us; have you now stopped importing matumbo, chifu, kafulusasa etc from abroad that were being laced with “embalming chemicals” meant for DEAD human bodies to stop them from decomposition? I ask because l now know you guys when it comes to money making, you can do anything including even killing a DEAD BODY ten times over in order to extract cash from such.
That debacle just disappeared like a fart in the air …the selfsame way its Irish co-founder Francis Grogan disappeared from the spot light…to date as is the case in Zambia, no conclusive report ever came out from Ministry of Health. Everything must have been settled behind closed doors with brown envelopes and huge party donations.
I hope GRZ and Lazy Lungu can learn from this and put this into practice in the The Industrial Development Corporation of Zambia. A visit to their website one is hit with fictitious projection growth figures of employment and expansion. Copy and paste what this company is doing and get rid of wasteful companies on the portfolio!!
With all those huge profits Mr Grogan kindly give your workers a salary increase with better conditions of service and reduce on the number of musungu managers you employ – its a shame for you to call yourself Zambeef when you only have a rubber stamp Mwanza crooked kafupi era capitalist as your mouth piece chairman surrounded by racist white imperialists! Days are numbered!.
Very strong results, typically the sign of a well-run company to overcome times of difficulty. Would not be surprised to see Zambeef become a regional agricultural giant. A true MNC of Africa so to speak. Share price only has one way to go, up.