Zambeef first-half profit jumps 108% on improved margins, stronger kwacha
Food producer reports higher earnings as easing inflation and improved power supply support operations
ZAMBIA – Zambeef Products has reported a 108.3% increase in first-half profit, supported by improved operating margins, easing inflation, a stronger local currency and more reliable electricity supply.
The Zambia-based integrated agribusiness and food producer said revenue increased 2.3% to ZMW3.93 billion (US$152.9 million) during the six months ended 31 March, while gross profit rose 7.2% to ZMW1.51 billion (US$58.8 million).
Operating profit climbed 30.2% to ZMW322.7 million (US$12.6 million), while profit before tax increased 58.0% to ZMW82.8 million (US$3.2 million).
Chief Executive Officer Faith Mukutu said the results reflected the company’s ability to navigate a period of economic transition and positioned it for continued growth during the second half of the financial year following the completion of British International Investment’s preference share conversion.
Shares in the AIM-listed company rose 5.26% to 5 pence in morning trading following the announcement.
Diversified agribusiness supports growth
Founded in 1991 as a butcher shop in Lusaka, Zambeef has grown into Zambia’s largest integrated cold-chain food and agribusiness company, operating across the entire value chain from crop production and livestock farming to food processing, distribution and retail.
The company is the country’s largest beef producer and also has significant operations in poultry, pork, dairy, animal feed, flour milling and leather processing. Through its Novatek brand, Zambeef manufactures livestock feed, while its retail network includes company-owned butcheries, supermarket outlets and fast-food restaurants.
In addition to its operations in Zambia, the company has a presence in Nigeria and Ghana and employs thousands of people directly while supporting smallholder farmers through its supply chains.
The stronger first-half performance reflects improved macroeconomic conditions in Zambia and highlights the resilience of the company’s diversified business model as it continues to strengthen its position in the regional food and agriculture sector.
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