RE:exchange rate27 Oct 2015 14:36
- Zambeef expects US dollar-reported revenue for the year to 30 September 2015 to be lower than market expectations, largely because of the weakening of the Zambian Kwacha against the US Dollar.
"We anticipate, however, that the improvement in our gross profit margins will result in operating profits and net cash inflow from operating activities exceeding expectations," the company said.
"This will, in turn, result in the Group's expected US Dollar reported adjusted profit before tax being in line with market consensus.
"Continued management focus on the retailing division and the opening of additional retail stores have resulted in the cold chain food products division continuing to perform well.
"The cropping division has also had a good year, with gross margins exceeding management's expectations. The conclusion of the sale of Zamanita Limited to Cargill on 1 June 2015 resulted in a cash inflow to Zambeef of US$27.0 million and a substantial reduction in the Group's indebtedness. This is in line with Zambeef's strategy of unlocking value within the Group and reducing debt and gearing.
"In the interim results to 31 March 2015 (as announced on 10 June 2015), Zambeef highlighted the Zambian Kwacha's depreciation against the US Dollar.
"During the second half of the financial year, the Zambian Kwacha has continued to weaken against the US Dollar, and the ensuing foreign exchange losses are expected to impact negatively on the Group's results.
"Also, recent electricity supply issues in Zambia have resulted in unforeseen generator running costs being incurred and additional operating challenges for the Group."
is this the reason for the big drop in todays SP. least they should get a decent price for the fuel.
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