Zambeef flags higher local currency earnings

(Sharecast News) - Zambeef Products said on Monday that total basic earnings per share in Zambian kwacha for the period ended 31 March were expected to be around 112% higher than a year earlier, with no change to the market guidance it issued on 14 May.

The AIM-traded, Zambia-based food producer said the improvement reflected robust underlying operations, disciplined overhead management and transactional cost savings on imported inputs following the kwacha's appreciation at the turn of the calendar year.

It also said operating profit had continued to grow year-on-year, supported by a reduction in Zambia's monetary policy rate to 13.25% from 14.5% earlier in the year and a stabilisation in electricity supply.

Zambeef said it remained cautious for the second half, citing constrained consumer spending, Middle East-related pressure on fuel and fertiliser costs, and potential operational disruption around Zambia's August elections.

Interim results were expected by the end of June.

At 1100 BST, shares in Zambeef Products were up 5.26% at 5p.

Reporting by Josh White for Sharecast.com.

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