Last checked at 30 Sep 2016 07:00
30 September 2016
Zambeef Products plc
("Zambeef" or "the Group")
Year End Trading Update
Zambeef (AIM: ZAM), the fully integrated agribusiness with operations in Zambia, Nigeria and Ghana, is pleased to provide an update on its performance for the year ending 30 September 2016. The audited annual results are expected to be announced on 25 November 2016.
Group Overview
The strong trading performance of the first six months of the financial year has continued with the beef, pork, dairy and stock feed operations, in particular, all showing strong volume growth. This is largely due to the ongoing roll-out of the macro retail stores.
The conclusion of the CDC Group plc transaction (as initially announced on 4 August 2016) resulted in an investment into Zambeef of US$65.0 million. This enabled Zambeef to settle the two RCL Foods plc put options as well as substantially reduce the Group's indebtedness. This is in line with Zambeef's strategy of unlocking value within the Group whilst minimising shareholder dilution and reducing debt and gearing.
During the second half of the financial year, the Zambian Kwacha has continued to remain relatively stable against the US Dollar, and the Group is expected to incur foreign exchange gains for the financial year.
In view of this, the Group expects US Dollar reported profits for the year to 30 September 2016 to be materially higher than current market expectations.
Carl Irwin, Joint Chief Executive of Zambeef, commented:
"In line with the Group's strategy, it is pleasing to note that gearing has been reduced significantly following the CDC transaction, which also allowed Zambeef to settle the two RCL Foods plc put options. Furthermore, driving the cold chain food products through the retail network will continue to be a key focus."
For further information, please contact:
Zambeef Products plc Carl Irwin, Joint Chief Executive Officer Francis Grogan, Joint Chief Executive Officer
| Tel: +260 (0) 211 369003 |
Strand Hanson Limited James Spinney Frederick Twist Ritchie Balmer
| Tel: +44 (0) 20 7409 3494 |
Finncap Joanna Scott Christopher Raggett
| Tel: +44 (0) 20 7220 0500 |
Powerscourt Nick Dibden Nick Brown
| Tel: +44 (0) 20 7250 1446 |
Pangaea Securities Ceaser Siwale Wendy Tembo
| Tel: +260 (0) 211 220 707 |
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
About Zambeef Products Plc
Zambeef Products Plc is the largest integrated agribusiness and food processor in Zambia, involved in the primary production, processing, distribution and retailing of beef, chickens, pork, milk, eggs, dairy products, fish, flour and stock feed throughout Zambia. The Group has one of the largest cereal row cropping operations in Africa, with a total of 24,174 hectares planted during FY2015. The group is also in the process of rolling out its West Africa expansion in Nigeria and Ghana.
The Group has approximately 6,200 employees.
Further information can be found on www.zambeefplc.com