Business Zambeef: Full year results
The Zambeef Group is one of the largest integrated cold chain food producers in Zambia, involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stock feed.
The Group has delivered a solid financial performance, driven by good volume and margin growth in the Retail and Cold Chain Food Products division and Stockfeed division. Also a return to profitability at the Masterpork, Nigeria and Wheat Mill operations and continued divestment of non-core assets to reduce debt (as evidenced by the reduction in the Debt-To-EBITDA ratio) and provide for additional cash to invest in the Group’s operations.
As planned, 10 new Zambeef Macro retail stores were successfully opened across strategic locations in Zambia and three in-store Shoprite butcheries were opened and 18 sites were purchased for development with plans to open 10 new Macro outlets each year over the next three years.
Key capital expenditure operations throughout the period focused on the expansion of the retail network and the commissioning of the new Copperbelt processing and distribution hub to improve efficiencies in the Copperbelt and North Western Province operations, also completing the expansion of the breeding farm and hatcheries to increase day-old chick production from 344,000 to 430,000 birds per week.
Strategic priorities for the Group in FY19 remain unchanged. It is the goal to continue the strong start to the year which has delivered revenue of 280,301 $ through expanding retail network and addressing supply constraints in the CCFP and stockfeed operations.
The company is committed to employing EBITDA (23,071 $) to fund working capital, capital expenditure for financially viable projects and to service debt. They are further reducing gearing and dollar debt, in order to help to mitigate foreign exchange and interest rate risk exposures.