(Sharecast News) - Zambian beef producer Zambeef reiterated full-year guidance on Monday as it said basic earnings per share were expected to have surged 272% year-on-year in USD terms and 306% in Kwacha.
Zambeef said its trading performance for the year ended 30 September was expected to be above market expectations, despite a "challenging operating environment", with revenue, gross profits, and adjusted underlying earnings all seen between 5-15% higher than market expectations.
Reported pre-tax profits were estimated to be roughly 30% higher than current market expectations. However, a higher taxation charge was expected to result in reported profit after tax below current market expectations but above the previous financial year.
Zambeef highlighted that it had continued to see "increasing demand" for its products, supported by a price moderation approach, resulting in volume growth across most product categories. Lower-than-expected selling prices and higher input costs, including fuel and electricity, put pressure on gross margins which moderated in the second half.
The London-listed group also noted that the exchange rate had "depreciated steadily" in the first half, while the market was "more turbulent" in the second, with the group beginning the financial year at K15.9/USD and ending the period at K21.31/USD.
"The company reiterates the guidance provided in the company's previous trading update of 7 November 2023, which included the following information, and therefore there is no change to the most recent market expectations as updated on 7 November 2023.
As of 1100 GMT, Zambeef shares were up 0.80% at 6.30p.
Reporting by Iain Gilbert at Sharecast.com
Zambeef Prod. (ZAM)