Agri-Business Group Report USD9.74m Profit in March 2016

zambeef march 2016 profit report

Zambeef Products Plc (AIM:ZAM, LUSE:ZAMBF) has recently released its financial results for the six months ending 31 March 2016, announcing a profit before tax of USD9.74m.

The result largely surpasses a loss of USD3.79m recorded in the six months ending on 31st March 2015.

According to the report, the management’s focus on the core business, the aggressive expansion of the retail chain and effective cost controls were the drivers of the profitable results.

In addition, admin expenses were cut from USD36.66m to USD27.5m in the period covered, even though sales decreased from USD102.14m to USD98.82m.

With this strategic focus Zambeef is set to become a major provider of cold chain food products in Zambia and the region, Zambeef CEO Dr Jacob Mwanza explained.

The company expects to keep this performance and demonstrate the effectiveness of the business model taken, Dr. Mwanza added.

Among other highlights of the report, Zambeef recorded a 72% increase over its operating profit from USD8.0m to USD13.7m.

This goal was achieved even though the company made a USD7.4m investment on its Zamhatch breeder farm and new stock feed facility.

Such investment seeks to eliminate bottlenecks in production and expand Zambeef’s retail store network.

Zambeef is the largest integrated agri-business and food processor in Zambia selling in the local market USD65.1m of cold chain food products in the period H1-2015.

According to the World Bank (WB), cold food products produced in Zambia is valued at USD194m per annum.