Zambeef Products plc

("Zambeef" or the "Group")

 

Full-year results for the year ended 30 September 2021

 

Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria  and Ghana, today announces its audited results for the year ended 30 September 2021.

 

Financial Highlights

Figures in 000's		2021	2020	%		2021	2020	%
		ZMW	ZMW			USD	USD
Revenue		4,974,351	3,875,104	28%		235,528	239,648		-2%
Cost of sales		(3,503,635)	(2,659,482)	32%		(165,892)	(164,470)		1%
Gross profit		1,470,716	1,215,622	21%		69,636	75,178		-7%
Administrative expenses		(1,150,658)	(945,198)	22%		(54,482)	(58,454)		-7%
Distribution costs		(66,848)	(66,770)	0%		(3,165)	(4,129)		-23%
Other income		14,120	6,877	105%		669	425		57%
Operating profit		267,330	210,531	27%		12,658	13,020		-3%
Finance costs		(115,282)	(92,322)	25%		(5,458)	(5,709)		-4%
Exchange gains/(losses)		23,332	(137,705)	117%		1,105	(8,516)		-113%
Share of loss equity accounted investment		(3,358)	(3,177)	6%		(159)	(197)		-19%
Profit from assets held for sale		31,949	-	100%		1,513	-		100%
Profit/(loss) before taxation		203,971	(22,673)	1,000%		9,658	(1,402)		789%
Taxation charge		(35,148)	(112,957)	69%		(1,664)	(6,986)		76%
Group income for the year from continuing operations		168,823	(135,630)	224%		7,995	(8,388)		195%
Profit from discontinued operations		-	33,435	-100%		-	2,068		-100%
Group income/(loss) for the year		168,823	(102,195)	265%		7,995	(6,320)	226%
EBITDA*		456,771	415,405	10%		21,627	25,689	-16%
Gross Profit Margin		29.57%	31.37%			29.57%	31.37%
EBITDA* Margin		9.18%	10.72%			8.75%	9.08%
Debt/Equity (Gearing)		18.59%	21.14%			18.59%	21.14%
Debt-To-EBITDA*		1.56	1.92	-19%		1.97	1.54	28%

 

*EBITDA is defined as Earnings before interest, tax, depreciation, amortisation, fair value adjustments, loss from equity accounted investments, loss on disposal and net unrealised foreign exchange losses.

 

PERFORMANCE OVERVIEW

 

Despite the rising input costs and global food prices, the difficult operating environment as a result of the 2020 economic and Covid-19 related uncertainties, the sustained consumer demand for the Groups products has driven positive full year performance. The macroeconomic fundamentals remained relatively stable during the financial year in the context of the previous comparative year. The local currency depreciated at a much slower rate in the first half and experienced steep appreciation in the second half. Increased consumer spending stemming from the Covid-19 economic stimulus package resulted in increased demand for our products. The good rainfall season experienced during the summer increased the supply of hydroelectric power to the nation, which helped alleviate the load shedding situation, thus positively impacting on the financial performance. The strength, resilience and agility of our business can be seen through the strong financial performance.

 

The Group generated an operating profit, including profit from asset held for sale, of ZMW299.3 million (USD14.1 million) compared to ZMW212.1 million (USD13.1million) in the prior financial year. The operating profit excluding profit from asset held for sale was ZMW267.3million (USD12.7 million) compared to ZMW210.5 million (USD13.0 million) achieved in the previous financial year. Profit before tax was ZMW203.9 million (USD9.7 million) compared to a loss before tax of ZMW22.7 million (USD1.4 million) achieved in the prior financial year. The Group's performance in the face of headwinds illustrates the strengths of its vertically integrated business model, the strength of its brands and management team.

                                                                                                                                                                                                                                                                                                                                                  

KEY FINANCIAL HIGHLIGHTS

 

Revenue and gross profit increased by 28% and 21% respectively in Kwacha terms for the Group due to the focus on revenue optimisation across most product lines. However due to the depreciation of the Zambian kwacha, the metrics in USD reduced by 2% and 7% respectively in comparison to 2020.

 

Despite an inflationary environment, management's continued focus on cost control measures ensured administration and distribution expenses were contained within inflationary levels and only increased by 20% (Inflation averaged 21.7% for the period) from ZMW1 billion in the previous corresponding period to ZMW1.2 billion in the period under review.

 

Finance costs reduced by 4.4% in USD following repayments of principal amounts on long term loans. During the period under review, management took steps to restructure the Company's debt profile by replacing USD debt with Kwacha debt to match the debt profile to the revenue profile and thus reduce foreign exchange risk, which should help provide predictability to the bottom line going forward. The USD to ZMW debt mix now stands at 15%:85% compared to 80%:20% at the end of the previous financial year. The Group benefited from the Central Bank's Covid-19 relief fund with favourable interest rates.

 

The operating profit performance and the recorded exchange gains during the financial year resulted in a profit after tax of ZMW169 million (USD 8.0 million) for 2021 compared to a loss after tax of ZMW102 million (USD6.3 million) in the previous period.

 

Zambeef's management remains committed to implementing the five year business strategy which is underpinned by the following pillars:

 

§ Focus on and strengthen our core business by investing in capacity and grow market share

§ Divestiture of non-core assets to free up resources

§ Develop a human capital strategy that aligns with business objectives

§ Strengthen our strategic partnerships.

 

Zambeef's management will continue to focus resources on the Group's profitable business divisions, while improving those divisions that need additional attention to ensure that all areas of the business contribute fully to Group profitability. Management will remain focused on cost control and productivity improvements to enhance margins.

 

 

 

 

 

 

Commenting on these results, Chairman Mr. Mulenga Mundashi said:

 

"The unprecedented effects of the global pandemic disrupted all aspects of life around the world and our business has not been exempted. This invariably meant difficult trading conditions. Balancing between safeguarding the welfare of our people and customers and ensuring the business continuing to run efficiently and effectively whilst feeding the nation. The 2021 financial year was characterised by supply challenges and rising input costs underpinned by a tough macro environment. In comparison to the previous period, the macroeconomic fundamentals remained relatively stable during the financial year in the context of events in the second half of 2020. The local currency depreciated at a much slower rate in the first half and experienced a steep appreciation in the second half of the financial year. Increased consumer spending, stemming from the Central Bank's Covid-19 economic stimulus package resulted in increased demand for our products."

 

"The good rainfall season experienced during the summer increased the supply of hydroelectric power to the nation, which helped alleviate the load shedding situation, thus positively impacting on the financial performance. The strength, resilience and agility of our business can be seen through the strong financial performance, having posted record profits."

 

"The Board believes the key to sustainable growth, while mitigating the effects of dynamic economic and climate cycles, lies in remaining committed to its strategic priorities. As such, the focus remains on the core businesses that generate sustainable and strong cashflows, while reducing our debt to release cash for reinvestment in higher returning projects."

 

"We anticipate macro-economic stability to continue over the medium term supported by improved investor sentiment, high copper prices and improved electricity supply. The Kwacha is expected to maintain relative stability with minor volatility towards the end of the calendar year. The copper price, which is a major foreign exchange earner for the country, is expected to continue holding as the global economy continues to recover from the Covid-19 related shocks. The inflation rate is expected to reduce following an expected summer crop bumper harvest from a forecasted La Niña weather pattern, the appreciation of the Kwacha and restoration of global supply stability. The Covid-19 pandemic remains a threat to the country as its vaccination program continues to move at a slow pace."

 

"The Group remains committed to delivering value to shareholders and is well positioned to navigate the turmoil while capitalising on opportunities."

 

Copies of Zambeef's Annual Report and Accounts for the year ended 30 September 2021 and Notice of AGM will shortly today be available on the Group's website.

 

For further information, please visit www.zambeefplc.com or contact:
Zambeef Products plc	Tel:  +26 (0) 211 369003
Walter Roodt, Chief Executive Officer
Faith Mukutu, Chief Financial Officer
finnCap (Nominated Adviser and Broker)	Tel: +44 (0) 20 7220 0500
Ed Frisby/Kate Bannatyne/Tim Harper (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Autus Securities Limited	Tel: +26 (0) 761 002 002
Mataka Nkhoma

About Zambeef Products PLC

Zambeef Products plc is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the region, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stockfeed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana.

 

It has 238 retail outlets throughout Zambia and West Africa.

 

The Company is one of the largest suppliers of beef in Zambia. Five beef abattoirs and three feedlots are located throughout Zambia, with a capacity to slaughter 230,000 cattle a year. It is also one of the largest chicken and egg producers in Zambia, with a capacity of 8.8m broilers and 22.4 million day-old chicks a year. It is one of the largest piggeries, pig abattoirs and pork processing plants in Zambia, with a capacity to slaughter 75,000 pigs a year, while its dairy has a capacity of 120,000 litres per day.

 

The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 7,787 hectares of row crops under irrigation, which are planted twice a year, and a further 8,694 hectares of rainfed/dry-land crops available for planting each year.

 

CHAIRMAN'S REVIEW

Dear Shareholder,

It is my great pleasure to present to you the Chairman's Report with respect to the financial year ended 30 September 2021.

The unprecedented effects of the global pandemic disrupted all aspects of life around the world and our business has not been exempted. This invariably meant difficult trading conditions. Balancing between safeguarding the welfare of our people and customers and ensuring the business continuing to run efficiently and effectively whilst feeding the nation. The 2021 financial year was characterised by supply challenges and rising input costs underpinned by a tough macro environment. In comparison to the previous period, the macroeconomic fundamentals remained relatively stable during the financial year in the context of events in the second half of 2020. The local currency depreciated at a much slower rate in the first half and experienced a steep appreciation in the second half of the financial year. Increased consumer spending, stemming from government dismantling of domestic debt and the Central Bank's Covid-19 economic stimulus package resulted in increased demand for our products.

 

The good rainfall season experienced during the summer increased the supply of hydroelectric power to the nation, which helped alleviate the load shedding situation, thus positively impacting on the financial performance. The strength, resilience and agility of our business can be seen through the strong financial performance, having posted record profits.

 

The Group generated an operating profit, including profit from asset held for sale, of ZMW299.3 million (USD14.1 million) compared to ZMW212.1 million (USD13.1 million) in the prior financial year. The operating profit excluding profit from asset held for sale operations was ZMW267.3million (USD12.7 million) compared to ZMW210.5 million (USD13.0 million) achieved in the previous financial year. Profit before tax was ZMW203.9 million (USD9.7 million) compared to a loss before tax of ZMW22.7 million (USD1.4 million) achieved in the prior financial year. The Group's performance in the face of headwinds illustrates the strengths of our vertically integrated business model, the strength of our brands and a strong management team.

 

The Board believes the key to sustainable growth, while mitigating the effects of dynamic economic and climate cycles, lies in remaining committed to its strategic priorities. As such, the focus remains on the core businesses that generate sustainable and strong cashflows, while reducing our debt to release cash for reinvestment in higher returning projects.

                                                                                                                               

The Economic Environment

The Zambian economy came under significant pressure in the first half of the financial year, stemming from the national debt burden, which was exacerbated by the impact of the coronavirus pandemic while the second half saw the country hold successful general elections which resulted in positive market sentiments and a positive economic outlook. The Zambian Kwacha appreciated steeply in the last quarter, supported by foreign participation in the bond market and a higher copper price on the international commodity markets.

 

Despite recovery in the global economy, the Zambian economic recovery shall remain gradual, given the high debt burden, high inflation and a volatile currency.

              

Inflationary pressures, particularly food inflation, had resulted in a significant drop in our customers' disposable income and has continued to put pressure on the consumers' share of wallet going towards food spend. Inflation for the financial year under review closed at 22.1% compared to 15.7% for the previous financial year.

 

Divisional Performance review

 

Retail and Cold Chain Food Products

The Group continued to focus on revenue optimisation, asset utilisation and cost control as pillars to drive profitability in the combined retail and cold chain food products divisions. Revenue grew by 30% with an operating profit of ZMW 216.4 million.

 

Supply challenges experienced by the division and rising global food prices precipitated rising input costs. As a result, the division saw volumes decline across most protein categories. 

 

The Poultry business remained a major source of profitable growth for the Group. Management implemented measures to improve production efficiencies, which contributed to improved gross profit margins. Increased demand for eggs, broilers and therefore day-old chicks allowed for revenue growth and improved profitability.

 

Stockfeed

Volumes were flat compared to prior year during the period owing to slow growth and declines on major product lines. The shortage of day-old chicks on the market limited customers buying of broiler feed while an export ban imposed by government reduced export sales. The increase in the world prices of GMO-free soya beans and imported materials negatively impacted cost of sales and, therefore, profitability.

 

Cropping

Zambia had a good summer rainfall season, and as a result, yields for the summer crop were in line with expectations, with winter crop yields exceeding expectations supported by better farming practices and reduced load-shedding. The country delivered a bumper maize harvest, which helped to stabilise maize prices.

 

Outlook

We anticipate macro-economic stability to continue over the medium term supported by improved investor sentiment, high copper prices and improved electricity supply. The Kwacha is expected to maintain relative stability with minor volatility towards the end of the calendar year. The copper price, which is a major foreign exchange earner for the country, is expected to continue holding as the global economy continues to recover from the Covid-19 related shocks. The inflation rate is expected to reduce following an expected summer crop bumper harvest from a forecasted La Niña weather pattern, the appreciation of the Kwacha and restoration of global supply stability. The Covid-19 pandemic remains a threat to the country as the country's vaccination program continues to move at a slow pace.

 

The Group remains committed to delivering value to shareholders and is well positioned to navigate the turmoil while capitalising on opportunities.

 

Strategy

During the year, the board embarked on a five-year strategy refresh process for the Group. Although it is difficult to look ahead with any certainty, I am happy to report that we now have a strategy in place that positions the Group to tackle the challenges ahead while capitalising on the opportunities presented and therefore maximise shareholder value. The strategy provides clarity in terms of where we want to go and what we want to do, having set realistic targets and mapped out a journey. The "five-year" strategy will be underpinned by the following pillars:

 

§ Focus on and strengthen our core business by investing in capacity and grow market share

§ Divestiture of non-core assets to free up resources

§ Develop a human capital strategy that aligns with business objectives

§ Strengthen our strategic partnerships

 

Acknowledgement

On behalf of the Company and the board of directors, I would like to express my sincere gratitude to Dr Lawrence Sikutwa, Margaret Mudenda, John Rabb, David Osborne and Professor Enala Mwase who resigned from the board in February and March 2021. Their dedication and contributions to the success of the business over the years will be greatly missed.

 

During the year, we welcomed Monica Musonda, Pearson Gowero and Roman Frenkel to our board of directors. Their industry experience and rich diverse backgrounds will be key in driving the business into the next phase of the Groups evolution as a regional food provider.

 

At senior management level, we said farewell to Danny Museteka who had been with the company for 22 years, his last role being company secretary. Danny played a vital role in helping to transform the company over the years, and I would like to thank him for his outstanding contribution. We welcomed Mwansa Mutimushi who joined as Group head of legal & company secretary and Nyangu Kayamba who also joined as human resources executive. I believe it is a good addition to the dedicated team and that we have a good balance of skills and professionalism.

 

I also thank my fellow board members for steering the Group through this challenging period. To our management and staff, I express my gratitude to them for another solid performance, dedicated efforts and resilience in the face of challenges. I am proud of our achievements to date, and I am excited by the potential opportunities upon which we will build our future progress.

 

 

Michael Mundashi SC

Chairman

 

 

 

 

 

 

 

 

 

CHIEF EXECUTIVE OFFICER'S REVIEW

 

Overview 

Despite the rising input costs and rising global food prices, and a difficult operating environment resulting from the 2020 economic and Covid-19 pandemic related uncertainties, the positive full year performance has been driven by sustained consumer demand for our products and cost reductions and efficiency improvements especially in the poultry business. The macroeconomic fundamentals remained relatively stable during the financial year in the context of the previous comparative year. The local currency depreciated at a much slower rate in the first half and experienced a steep appreciation in the second half of the financial year. Increased consumer spending stemming from the Covid-19 economic stimulus package resulted in increased demand for our products. The good rainfall season helped alleviate load shedding and therefore positively impacted on the financial performance. The increase in raw material input costs, such as Soya and imported products, impacted on production costs. The resultant increase in food prices to our customers saw increased demand for more affordable offerings of our products as customers traded down.

 

The load shedding situation improved towards the end of the calendar year 2020 following good regional rains because of the La Niña weather pattern, resulting in reduced generator fuel expenditure and improved production efficiencies.

 

The Group delivered operating profit, including profit from asset held for sale, of ZMW299.3 million (USD14.1 million), equating to a growth of 42% in Kwacha terms and 8% growth in US Dollar terms, compared with ZMW212.1 million (USD13.1 million) in 2020. The operating profit excluding profit from asset held for sale was ZMW267.3million (USD12.7 million) compared to ZMW210.5 million (USD13.1 million) achieved in the previous financial year.

 

Our revenue, including from asset held for sale, was ZMW5.2 billion (USD244.1 million) and we achieved a gross profit of ZMW1.54 billion (USD73.1 million), respectively 30.8% and 22.8% above the prior year in Kwacha terms, and 0.5% and 0.1% growth in US Dollar terms, respectively.

 

The Group's strong performance was driven by growth in the poultry and retail divisions. Management continued optimising top line growth through revenue management initiatives while the continued cost control measures helped deliver strong operating profit performance.

 

The Group recorded exchange gains owing to the appreciation of the local currency. Financing costs reduced following a reduction in debt and the appreciation of the local currency. Management took steps to restructure the company's debt profile by replacing USD debt with Kwacha debt to match the debt profile to the revenue profile and thus reduce foreign exchange risk, which should help provide predictability to the bottom line going forward. The USD to ZMW debt mix now stands at 15%:85% compared to 80%:20% at the end of the previous financial year. The Group derived a significant benefit from the central bank's Covid-19 relief fund with favourable interest rates.

 

Our diversified and vertically integrated business with strong brands, supportive partners and an experienced management team helped deliver encouraging results during a challenging year.

 

Strategic focus

Our strategic focus remains to optimise our asset utilisation and maximise returns. We remain committed to our strategy of focussing on our core businesses, in which we strive to be the best in class. The continued deleveraging and divestiture of non-core assets will enable us to free up cash to invest into our core businesses and therefore maximise shareholder value.

 

Retail and Cold Chain Food Products (CCFP)

The year saw traditionally high-volume sales lines come under pressure amidst a high inflationary environment and reduced customer spending. Despite high demand in our key product lines, supply constraints negatively impacted volume growth. Revenue growth was mainly driven by pricing on traditional product categories and aided by sales volume growth of traded goods and affordable alternative food categories. Shoprite in-store butcheries were a source of revenue growth as they proved relatively more resilient to inflationary pressures.

 

Sales volumes came under pressure on the back of supply constraints due to constrained livestock producer profitability levels. Significant producer price increases were necessary during the period for livestock producers to increase output. The price increases that were necessary to stimulate supply resulted in customers moving towards more affordable protein offerings. The poultry division was a major contributor to revenue growth due to improved efficiencies and high demand for it as a relatively affordable protein source, in the form of chicken and eggs.

 

Despite the challenges, the Retail and Cold Chain Food Products business registered a healthy revenue growth of 30% above the prior year. Management employed a revenue optimisation strategy, responding quickly to the evolving volatile operating environment.

 

Retail and Cold Chain Food Products delivered an operating profit of ZMW 216.4 million in Kwacha terms. Operational efficiency improvements and overhead spend discipline ensured translation of the top line growth to the bottom-line. Reduced load shedding helped reduce fuel costs of our electricity generators, which further contributed to the increased profitability, particularly in the second quarter.

 

Stockfeed

Revenue for the division was 31% above prior year mainly due to price, as volumes remained flat on prior year. The demand for poultry feed reduced following a day-old chick supply shortage across the market. An export ban on animal feed from Zambia resulted in a further slowdown of production volumes. However, fish feed continues to register exponential growth following the sector specific lifting of the fish feed export ban and government's efforts to make Zambia a regional player in the aquaculture sector. The depreciation of the Kwacha to the USD and ZAR negatively impacted foreign currency denominated costs. The high soya bean prices also negatively impacted on the cost of sales.

 

Cropping

Revenue in USD terms increased by 10% due to favourable winter crop price and sale of the soya summer crop. However, operating profit decreased in USD terms due to price increases in input costs. Zambia experienced a good rainfall season and the yield of the summer crop was in line with expectations with the yield of the winter crop exceeding expectations.

 

Outlook

The macroeconomic environment is expected to remain stable with indicators expected to adjust to a more favourable position. The successful holding of general elections on 12 August 2021 and the resultant change in government and peaceful transition has brought investor confidence and optimism. This triggered a sharp appreciation of the kwacha as foreign interest in government securities intensified and foreign direct investment prospects improve. This coupled with high copper prices, a potential IMF deal and continued low load shedding levels due to another La Niña weather pattern this summer, has improved the country's economic outlook. We expect this to translate into a slowdown in inflation, reduced interest rates and thus increased economic activity and a restoration of macroeconomic stability.

 

Despite the macro-economic headwinds and uncertainty caused by the Covid-19 pandemic, Zambeef's underlying performance has been and is expected to remain resilient, improving as the economic situation improves. Our strong brands help us maintain customer loyalty while the vertically integrated business model helps to secure both supply and a market for our products. The future recovery in the economy and strong management have positioned us well for an improved profitability in the coming years.

 

Our deleveraging strategy and debt profile reorganisation will help relieve exchange losses and financing cost pressures to the bottom line, which will increase free cash flow to enable us to invest in the future. 

 

We remain committed to implementing and enforcing Covid-19 protocols in our outlets while driving the vaccination of all our employees. We believe that a healthy, sustainable and profitable growth trend can only be achieved when we work together with our partners, communities and customers to curb infections through the observation and implementation of safety protocols.

 

Key Market Indicators
Reporting Period Monthly Averaged Comparatives		2021	2020	Change
Economy
ROE ZMW/USD	ZMW	21.1	16.2	30%
Annual Inflation rate	%	22.1	15.7	41%
Copper	$/Ton	9,041	6,610	37%
Commodities
Maize	$/ton	150	252	-40%
Soya Beans	$/ton	400	382	5%
SE Cake	$/ton	416	403	3%
Wheat	$/Ton	440	415	6%
Input Prices
Maize Bran	K/Ton	1,690	1,190	42%
Broiler Grower	K/50kg	367	310	18%
Pig Grower	K/50Kg	317	251	26%
Layer feed	K/50kg	273	231	18%
Day-old chick	K/DOC	11.1	6.8	63%
Selling Prices
Beef Mixed cut	K/Kg	44.4	37.7	18%
Chicken Frozen	K/Kg	34.6	28.2	23%
Chicken Live Market	K/Chicken	80	52	54%
Egg Tray	K/tray of 30 Eggs	48.8	35.6	37%

 

 

 

 

 

 

 

DIVISIONAL PERFORMANCE

 

Table 1 (ZMW) and Table 2 (USD) below provide a summary of the consolidated performance of the key business divisions reported at an operating profit level.

 

Table 1: Divisional financial summary in ZMW'000

ZMW	Revenue		Gross Profit		Overheads		Operating Profit
Division	2021 ZMW'000	2020 ZMW'000	2021 ZMW'000	2020 ZMW'000	2021 ZMW'000	2020 ZMW'000	2021 ZMW'000	2020 ZMW'000
Total
Retailing	2,906,466	2,396,313	271,261	243,377	(338,901)	(322,041)	(67,640)	(78,664)
CCFP	2,054,232	1,516,371	556,186	401,276	(272,126)	(213,054)	284,060	188,222
Less Interco	(1,705,769)	(1,399,926)
Combined
Retail &	3,254,929	2,512,758	827,447	644,653	(611,027)	(535,095)	216,420	109,558
CCFP
Stock Feed	1,747,742	1,331,965	300,436	255,888	(153,716)	(129,539)	146,720	126,349
Cropping	754,385	651,560	272,254	266,405	(192,845)	(160,618)	79,409	105,787
Others	343,391	203,609	70,579	48,676	(31,985)	(23,450)	38,594	25,226
Total	6,100,447	4,699,892	1,470,716	1,215,622	(989,573)	(848,702)	481,143	366,920
Less: Intra/
Inter Group	(1,126,096)	(824,788)
Sales
Central
Overhead					(213,813)	(156,389)	(213,813)	(156,389)
Group Total	4,974,351	3,875,104	1,470,716	1,215,622	(1,203,386)	(1,005,091)	267,330	210,531

 

 

 

 

 

DIVISIONAL PERFORMANCE

 

Table 2: Divisional financial summary in USD'000

USD	Revenue		Gross Profit		Overheads		Operating Profit
Division	2021 USD'000	2020 USD'000	2021 USD'000	2020 USD'000	2021 USD'000	2020 USD'000	2021 USD'000	2020 USD'000
Total
Retailing	137,617	148,195	12,844	15,051	(16,046)	(19,916)	(3,203)	(4,865)
CCFP	97,265	93,777	26,335	24,816	(12,885)	(13,176)	13,450	11,640
Less Interco	(80,766)	(86,576)	-	-	-	-	-
Combined
Retail &	154,116	155,396	39,178	39,867	(28,931)	(33,092)	10,247	6,775
CCFP
Stock Feed	82,753	82,373	14,225	15,825	(7,278)	(8,011)	6,947	7,814
Cropping	35,719	40,294	12,891	16,475	(9,131)	(9,933)	3,760	6,542
Others	16,259	12,592	3,342	3,010	(1,514)	(1,450)	1,827	1,560
Total	288,847	290,655	69,636	75,178	(46,855)	(52,486)	22,781	22,691
Less: Intra/
Inter Group	(53,319)	(51,007)
Sales
Central
Overhead					(10,124)	(9,672)	(10,124)	(9,672)
Group Total	235,528	239,648	69,636	75,178	(56,979)	(62,158)	12,658	13,020

 

Taking the performance of each of our key business areas in turn:

 

Retail and Cold Chain Food Products

The combined Retail and Cold Chain Food Products divisions generated an EBIT margin of 6.7% which increased by 229 basis points from the previous financial year to ZMW 216.4 million (2020: ZMW 109.6 million) in Kwacha terms and grew impressively by 51.2% to USD 10.3 million (2020: USD 6.7 million) in Dollar terms.

 

The strong performance was underpinned by revenue optimisation and cost control in Poultry products supported by increased demand given the relative affordability of Chicken and Egg as a source of protein. Cost pressure arising from supply constraints negatively impacted on the profitability in Pork, Beef and Milk.

 

West Africa Retail

Our Nigerian business was impacted by the sporadic protests related to the Shoprite announcement of the intention to pull out of the Nigeria market and the End SARS protests. In addition, the business experienced supply challenges across its major product lines. Despite all these challenges, revenue increased by 14% to USD 15.4 million (2020: USD 13.5 million) mainly due to pricing and exchange translational effects with dollar revenue increasing by 14%. However, operating profit declined by 52% in dollar terms due to rising costs of inputs.

 

Stockfeed

Sales volumes were flat on prior year mainly due to declines on key volume categories. Shortage of day-old chicks slowed the growth of broiler feed while an export ban impacted export sales.

 

Revenue grew by 31% in Kwacha terms and 0.5% in USD terms, while the operating profit grew by 16% to ZMW 146.7 million (2020: ZMW 126 million) or declined by 11% to USD 6.9 million (2020: USD 7.8 million) in Dollar terms. Production costs was impacted by rising costs of inputs, particularly the Soya and imported raw materials.

 

 

Cropping

The Cropping business is key to Zambeef, providing raw material inputs for value added processing within the Group and serving as a currency hedge by being able to generate USD cash flow.

 

Revenue including revenue from assets heald for sale increased by 10% in USD terms to USD 44.3 million (2020: USD 40.3 million) which translated to a 43.4% growth in revenue to ZMW 935.9 million (2020: ZMW 651.5 million) when analysed in kwacha terms. Gross profit increased by 30% to ZMW 345 million compared to the previous corresponding period (2020: ZMW 266 million) in Kwacha terms despite a 1% reduction in USD terms to USD 16.3 million (2020: USD 16.5 million). The division observed an increase in overheads of 47% in Kwacha terms and 12.7% in USD as a result of increments in repair and maintenance costs during the period under review.

 

Zambia experienced a good rainfall season and the summer harvest is expected to be in line with expectations. However, the price of maize is expected to be lower than the prior year following the expected bumper harvest predicted for Zambia.

 

Other businesses

 

Total revenue from the Group's other business units increased by 68.7%% to ZMW 343 million (2020: ZMW 203.6 million) mainly due to growth in both the milling and leather to shoe businesses. This translated to gross profit growth of 45% in Kwacha terms due to cost pressures in Milling arising from the increase in price of wheat in kwacha terms following the depreciation of the currency.

 

The leather to shoe business turnaround strategy paid off as the division saw an increase in demand for its products, particularly school shoes, following the opening of schools after Covid-19 related closures. Management focus has been to optimise production efficiencies, control overhead costs, innovation and look for new market opportunities for its products.

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Group	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Revenue	4,974,351	235,528	3,875,104	239,648
Net (loss)/gain arising from price changes in fair value of biological assets	6,651	315	(14,381)	(889)
Cost of sales	(3,510,286)	(166,207)	(2,645,101)	(163,581)
Gross profit	1,470,716	69,636	1,215,622	75,178
Administrative expenses	(1,150,658)	(54,482)	(945,198)	(58,454)
Distribution costs	(66,848)	(3,165)	(66,770)	(4,129)
Other income	14,120	669	6,877	425
Operating profit	267,330	12,658	210,531	13,020
Share of loss from equity accounted investment	(3,358)	(159)	(3,177)	(197)
Profit from asset held for sale	31,949	1,513	-	-
Exchange losses on translating foreign currency transactions and balances	23,332	1,105	(137,705)	(8,516)
Finance costs	(115,282)	(5,458)	(92,322)	(5,709)
Profit/(loss) before taxation	203,971	9,658	(22,673)	(1,402)
Taxation charge	(35,148)	(1,664)	(112,957)	(6,986)
Group income/(loss) for the year from continuing operations	168,823	7,995	(135,630)	(8,388)
Profit from discontinued operations	-	-	33,435	2,068
Group income/(loss) for the year	168,823	7,995	(102,195)	(6,320)

 

 

               

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2021

	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Group (loss)/income attributable to:
Equity holders of the parent	167,980	7,955	(103,419)	(6,396)
Non-controlling interest	843	40	1,224	76
	168,823	7,995	(102,195)	(6,320)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Exchange gains/(losses) on translating presentational currency	(286,645)	25,338	625,042	(52,402)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of net defined benefit liability	(2,813)	(133)	6,229	385
Remeasurement of leases	-	-	315	20
Revaluation of assets	192,403	9,110	-	-
Total other comprehensive income/(loss)	(97,055)	34,315	631,586	(51,997)
Total comprehensive income/(loss) for the year	71,768	42,310	529,391	(58,317)
Total comprehensive income/(loss) for the year attributable to:
Equity holders of the parent	73,867	42,440	525,030	(58,661)
Non-controlling interest	(2,099)	(130)	4,361	344
	71,768	42,310	529,391	(58,317)
	Ngwee	Cents	Ngwee	Cents
Earnings per share
Basic earnings per share - continued operations	55.89	2.65	(45.12)	(2.79)
Basic earnings per share - discontinued operations	-	-	11.12	0.69
Total Basic earnings per share	55.89	2.65	(34.00)	(2.10)
Diluted earnings per share
Diluted earnings per share - continued operations	41.92	1.99	(45.12)	(2.79)
Diluted earnings per share - discontinued operations	-	-	11.12	0.69
Total Diluted earnings per share	41.92	1.99	(34.00)	(2.10)

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

(i) In Zambian Kwacha	Issued share capital ZMW'000s	Share premium ZMW'000s	Preference share capital ZMW'000s	Foreign exchange reserve ZMW'000s	Revaluation reserve ZMW'000s	Retained earnings ZMW'000s	Total attributable to owners of the parent ZMW'000s	Non- controlling interest ZMW'000s	Total equity ZMW'000s
As at 30 September 2019	3,006	1,125,012	1,000	381,929	1,199,058	535,704	3,245,709	(4,881)	3,240,828
Adjustment on transition to IFRS16	-	-	-	-	-	315	315	-	315
At 1 October 2019	3,006	1,125,012	1,000	381,929	1,199,058	536,019	3,246,024	(4,881)	3,241,143
Loss for the year	-	-	-	-	-	(103,419)	(103,419)	1,224	(102,195)
Transfer of surplus depreciation	-	-	-	-	(31,345)	31,345	-	-	-
Other comprehensive income:
Exchange gain/(loss) on translating presentational currency	-	-	-	621,905	-	-	621,905	3,137	625,042
Remeasurement of net defined benefit liability	-	-	-	-	-	6,229	6,229	-	6,229
Total comprehensive income	-	-	-	621,905	(31,345)	(65,845)	524,715	4,361	529,076
At 30 September 2020	3,006	1,125,012	1,000	1,003,834	1,167,713	470,174	3,770,739	(520)	3,770,219
Profit for the year	-	-	-	-	-	167,980	167,980	843	168,823
Transfer of surplus depreciation	-	-	-	-	(44,377)	44,377	-	-	-
Other comprehensive income:
Revaluation	-	-	-	-	192,403	-	192,403	-	192,403
Exchange gain/ (loss) on translating presentational currency	-	-	-	(283,703)	-	-	(283,703)	(2,942)	(286,645)
Remeasurement of net defined benefit liability	-	-	-	-	-	(2,813)	(2,813)	-	(2,813)
Total comprehensive income	-	-		(283,703)	148,026	209,544	73,867	(2,099)	71,768
At 30 September 2021	3,006	1,125,012	1,000	720,131	1,315,739	679,718	3,844,606	(2,619)	3,841,987

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

(ii) In US Dollar	Issued share capital USD'000s	Share premium USD'000s	Preference share capital USD'000s	Foreign exchange reserve USD'000s	Revaluation reserve USD'000s	Retained earnings USD'000s	Total attributable to owners of the parent USD'000s	Non- controlling interest USD'000s	Total equity USD'000s
At 1 October 2019	449	185,095	100	(197,748)	173,209	84,782	245,887	(370)	245,517
Adjustment on transition to IFRS 16	-	-	-	-	-	20	20	-	20
As at 1 October 2019	449	185,095	100	(197,748)	173,209	84,802	245,907	(370)	245,537
Loss for the year	-	-	-	-	-	(6,396)	(6,396)	76	(6,320)
Transfer of surplus depreciation	-	-	-	-	(1,938)	1,938	-	-	-
Other comprehensive income:
Exchange gains on translating presentational currency	-	-	-	(52,670)	-	-	(52,670)	268	(52,402)
Remeasurement of net defined benefit liability	-	-	-	-	-	385	385	-	385
Total comprehensive income	-	-	-	(52,670)	(1,938)	(4,073)	(58,681)	344	(58,337)
At 30 September 2020	449	185,095	100	(250,418)	171,271	80,729	187,226	(26)	187,200
Profit for the year	-	-	-	-	-	7,955	7,955	40	7,995
Transfer of surplus depreciation	-	-	-	-	(2,101)	2,101	-	-	-
Other comprehensive income:
Revaluation	-	-	-	-	9,110	-	9,110	-	9,110
Exchange gains on translating presentational currency	-	-	-	25,508	-	-	25,508	(170)	25,338
Remeasurement of net defined benefit liability	-	-	-	-	-	(133)	(133)	-	(133)
Total comprehensive income	-	-	-	25,508	7,009	9,994	42,440	(130)	42,310
At 30 September 2021	449	185,095	100	(224,910)	178,280	90,652	229,666	(156)	229,510

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

 

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

(i) In Zambian Kwacha	Issued share capital ZMW'000s	Preference share capital ZMW'000s	Share premium ZMW'000s	Revaluation reserve ZMW'000s	Foreign exchange reserve ZMW'000s	Retained earnings ZMW'000s	Total equity ZMW'000s
At 1 October 2019	3,006	1,000	1,125,012	862,152	360,506	535,236	2,886,912
Profit for the year	-	-	-	-	-	26,838	26,838
Other comprehensive income:
Transfer of surplus depreciation	-	-	-	(33,614)	-	33,614	-
Remeasurement of net defined benefits liability	-	-	-	-	-	1,836	1,836
Exchange gain on translating presentational currency	-	-	-	-	609,324	-	609,324
Total comprehensive income	-	-	-	(33,614)	609,324	62,288	637,998
At 30 September 2020	3,006	1,000	1,125,012	828,538	969,830	597,524	3,524,910
Profit for the year	-	-	-	-	-	131,349	131,349
Other comprehensive income:
Revaluation	-	-	-	40,125	-	-	40,125
Transfer of surplus depreciation	-	-	-	(46,972)	-	46,972	-
Remeasurement of net defined benefits liability	-	-	-	-	-	(1,408)	(1,408)
Exchange gain/(loss) on translating presentational currency	-	-	-	-	(271,935)	-	(271,935)
Total comprehensive income	-	-	-	(6,847)	(271,935)	176,913	(101,869)
At 30 September 2021	3,006	1,000	1,125,012	821,691	697,895	774,437	3,423,041

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

COMPANY STATEMENT OF CHANGES IN EQUITY (CONTINUED)

(ii) In US Dollar	Issued share capital USD'000s	Preference share capital USD'000s	Share premium USD'000s	Revaluation reserve USD'000s	Foreign exchange reserve USD'000s	Retained earnings USD'000s	Total equity USD'000s
At 1 October 2019	449	100	185,095	116,408	(168,059)	84,712	218,705
Profit for the year	-	-	-	-	-	1,661	1,661
Other comprehensive income:
Transfer of surplus depreciation	-	-	-	(2,079)	-	2,079	-
Remeasurement of net defined benefits liability	-	-	-	-	-	114	114
Exchange losses on translating presentational currency	-	-	-	-	(45,460)	-	(45,460)
Total comprehensive income	-	-	-	(2,079)	(45,460)	3,854	(43,685)
At 30 September 2020	449	100	185,095	114,329	(213,519)	88,566	175,020
Profit for the year	-	-	-	-	-	6,219	6,219
Other comprehensive income:
Revaluation	-	-	-	1,900	-	-	1,900
Transfer of surplus depreciation	-	-	-	(2,224)	-	2,224	-
Remeasurement of net defined benefits liability	-	-	-	-	-	(66)	(66)
Exchange losses on translating presentational currency	-	-	-	-	21,410	-	21,410
Total comprehensive income	-	-	-	(324)	21,410	8,377	29,463
At 30 September 2021	449	100	185,095	114,005	(191,109)	96,943	204,483

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021

ASSETS	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Goodwill	166,801	9,964	166,801	8,282
Property, plant and equipment	3,115,018	186,082	3,264,505	162,091
Investment in associate	40,468	2,417	43,826	2,176
Deferred tax asset	9,050	541	9,552	474
	3,331,337	199,004	3,484,684	173,023
Current assets
Biological assets	358,997	21,445	176,305	8,754
Inventories	1,197,846	71,556	1,103,640	54,798
Trade and other receivables	234,076	13,983	132,668	6,587
Assets held for sale	170,550	10,188	175,654	8,722
Amounts due from related companies	4,202	251	9,337	464
Income tax recoverable	3,707	221	1,784	89
Cash and cash equivalents	201,539	12,039	111,136	5,518
	2,170,917	129,683	1,710,524	84,932
Total assets	5,502,254	328,687	5,195,208	257,955
Share capital	3,006	449	3,006	449
Preference share capital	1,000	100	1,000	100
Share premium	1,125,012	185,095	1,125,012	185,095
Other reserves	2,715,588	44,022	2,641,721	1,582
	3,844,606	229,666	3,770,739	187,226
Non-controlling interest	(2,619)	(156)	(520)	(26)
	3,841,987	229,510	3,770,219	187,200

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021 (CONTINUED)

	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Interest bearing liabilities	195,555	11,682	190,218	9,445
Leases	7,253	433	19,750	981
Deferred liability	8,891	531	11,389	565
Deferred tax liability	88,056	5,260	69,950	3,473
	299,307	17,906	291,307	14,464
Interest bearing liabilities	210,709	12,587	326,899	16,231
Leases	12,418	742	23,259	1,155
Trade and other payables	464,103	27,723	321,648	15,971
Provisions	169,307	10,113	113,347	5,629
Amounts due to related companies	-	-	443	22
Taxation payable	13,771	823	41	2
Bank overdrafts	490,204	29,283	348,045	17,281
	1,360,512	81,271	1,133,682	56,291
Total equity and liabilities	5,502,254	328,687	5,195,208	257,955

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

COMPANY STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021

ASSETS	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Non-current assets
Property, plant and equipment	2,166,483	129,420	2,476,394	122,959
Investments in subsidiaries	245,807	14,684	245,807	12,205
Investment in associate	40,468	2,417	43,826	2,176
	2,452,758	146,521	2,766,027	137,340
Current assets
Biological assets	307,948	18,396	139,501	6,927
Inventories	772,972	46,174	814,081	40,421
Assets held for sale	170,550	10,188	175,654	8,722
Trade and other receivables	91,702	5,478	50,555	2,510
Amounts due from related companies	780,554	46,628	1,320,117	65,547
Income tax recoverable	2,520	151	565	28
Cash and cash equivalents	113,193	6,762	12,645	628
	2,239,439	133,777	2,513,118	124,783
Total assets	4,692,197	280,298	5,279,145	262,123
EQUITY AND LIABILITIES
Capital and reserves
Share capital	3,006	449	3,006	449
Preference share capital	1,000	100	1,000	100
Share premium	1,125,012	185,095	1,125,012	185,095
Other reserves	2,294,023	18,839	2,395,892	(10,624)
	3,423,041	204,483	3,524,910	175,020

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

COMPANY STATEMENT OF FINANCIAL POSITION ‑ 30 SEPTEMBER 2021 (CONTINUED)

 

	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Non-current liabilities
Interest bearing liabilities	195,555	11,682	190,218	9,445
Leases	1,873	112	8,172	406
Deferred liability	2,124	127	3,356	167
Deferred tax liability	55,905	3,340	41,153	2,043
	255,457	15,260	242,899	12,061
Current liabilities
Interest bearing liabilities	210,709	12,587	326,899	16,231
Leases	6,597	394	14,461	718
Trade and other payables	293,054	17,506	232,844	11,561
Provisions	119,649	7,147	61,200	3,039
Amounts due to related companies	77,273	4,616	705,110	35,011
Bank overdrafts	306,417	18,304	170,822	8,482
	1,013,699	60,555	1,511,336	75,042
Total equity and liabilities	4,692,197	280,299	5,279,145	262,123

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
(Loss)/profit before taxation	203,971	9,658	(22,673)	(1,402)
Finance costs	115,282	5,458	92,322	5,709
Loss on disposal of property, plant and equipment	2,260	107	4,796	297
Depreciation	160,471	7,598	141,408	8,745
Share of loss on equity accounted investment	3,358	159	3,177	196
Profit on discontinued operations	-	-	1,529	95
Fair value price adjustment	(6,651)	(315)	14,381	889
Defined benefits movement	4,473	212	(3,185)	(197)
Defined benefits paid	(6,971)	(330)	(1,788)	(111)
Net unrealised foreign exchange losses	(19,422)	(920)	185,438	11,468
Earnings before interest, tax, depreciation and amortisation, fair value adjustments and net unrealised foreign exchange losses	456,771	21,627	415,405	25,689
Decrease/(increase) in biological assets	(176,041)	(8,335)	(20,269)	(1,253)
Increase in inventory	(94,206)	(4,461))	(162,481)	(10,048)
(Increase)/decrease in trade and other receivables	(101,408)	(4,802)	(34,643)	(2,142)
Decrease/(Increase) in amounts due from related companies	5,135	243	(2,410)	(149)
Increase/(decrease) in trade and other payables	198,415	9,395	122,496	7,575
Increase in amounts due to related companies	(443)	(21)	192	12
Income tax paid	(4,734)	(224)	(5,525)	(342)
Net cash inflow from operating activities	283,489	13,422	312,765	19,342
Investing activities
Purchase of property, plant and equipment	(116,629)	(5,522)	(92,664)	(5,731)
Proceeds from the sale of assets	51	2	6,452	399
Proceeds from the sale of assets/investments	-	-	167,264	10,344
Net cash (outflow)/inflow (on)/ from investing activities	(116,578)	(5,520)	81,052	5,012

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES                                               

FOR THE YEAR ENDED 30 SEPTEMBER 2021 (CONTINUED)
CONSOLIDATED STATEMENT OF CASH FLOWS

		2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Net cash (outflow)/ inflow before financing activities		166,911	7,902	393,817	24,354
Financing activities
Long term loans repaid		(262,705)	(12,439)	(162,217)	(10,032)
Receipt from term loans		220,000	10,417	-	-
Repayment short term funding		(477,906)	(22,628)	(623,231)	(38,542)
Receipt of short-term funding		449,619	21,289	487,320	30,137
Lease finance repayment		(32,513)	(1,539)	(35,478)	(2,194)
	Lease finance obtained	-	-	14,329	886
Finance costs		(115,282)	(5,458)	(92,322)	(5,709)
Net cash outflow on financing activities		(218,787)	(10,358)	(411,599)	(25,454)
Decrease in cash and cash equivalents		(51,876)	(2,456)	(17,782)	(1,100)
Cash and cash equivalents at beginning of the year		(236,909)	(11,763)	(274,425)	(20,790)
Effects of exchange rate changes on the balance of cash held in foreign currencies		120	(3,025)	55,298	10,127
Cash and cash equivalents at end of the year		(288,665)	(17,244)	(236,909)	(11,763)
Represented by:
Cash in hand and at bank		201,539	12,039	111,136	5,518
Bank overdrafts		(490,204)	(29,283)	(348,045)	(17,281)
		(288,665)	(17,244)	(236,909)	(11,763)

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

		Note	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Cash inflow from operating activities
Profit before taxation			147,144	6,967	34,203	2,115
Finance costs			84,981	4,024	68,747	4,252
Depreciation		14	87,466	4,141	80,462	4,976
Fair value price adjustment		16	3,323	157	15,464	956
Loss on disposal of property, plant and equipment			553	26	1,216	75
Share of loss on equity accounted investment			3,358	159	3,177	196
Defined benefit movement			2,241	106	312	19
Defined benefits paid			(3,473)	(164)	(611)	(38)
Profit on discontinued operations			-	-	1,529	95
Net unrealised foreign exchange differences			34,065	1,613	180,954	11,193
Earnings before interest, tax, depreciation and amortisation			359,658	17,029	385,453	23,839
Increase in biological assets			(168,448)	(7,976)	(2,286)	(141)
Decrease/(increase) in inventory			41,109	1,946	(130,482)	(8,069)
Increase in trade and other receivables			(41,147)	(1,948)	(22,402)	(1,385)
(Increase)/decrease in amounts due from related companies			539,563	22,656	(275,999)	(17,069)
Increase in trade and other payables			w	5,747	74,340	4,597
Increase in amounts due to related companies			(564,313)	(26,719)	215,065	13,300
Income tax paid		10(c)	(2,997)	(142)	(5,314)	(329)
Net cash inflow from operating activities			220,968	10,461	238,375	14,743
Investing activities
Purchase of property, plant and equipment		14	(43,129)	(2,042)	(35,385)	(2,188)
Proceeds from disposal of investment			-	-	167,264	10,344
Proceeds from sale of assets			157	7	4,205	260
Net cash (outflow)/inflow (on)/from investing activities			(42,972)	(2,035)	136,084	8,416

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2021 (CONTINUED)

 

	Note	2021 ZMW'000s	2021 USD'000s	2020 ZMW'000s	2020 USD'000s
Net cash inflow before financing activities		177,996	8,426	374,459	23,159
Financing activities
Long term loans repaid	29	(262,705)	(12,439)	(162,217)	(10,032)
Receipt from term loans	29	220,000	10,417	-	-
Short term funding repaid	29	(477,906)	(22,628)	(623,231)	(38,542)
Short term funding obtained	29	449,619	21,289	487,320	30,137
Lease finance repayment	29	(27,476)	(1,301)	(30,835)	(1,907)
Lease finance obtained	29	-	-	14,329	886
Interest paid		(84,981)	(4,024)	(68,747)	(4,252)
Net cash outflow on financing activities		(183,449)	(8,686)	(383,381)	(23,710)
Increase/(decrease) in cash and cash equivalents		(5,453)	(260)	(8,922)	(551)
Cash and cash equivalents at beginning of the year		(158,177)	(7,854)	(195,772)	(14,381)
Effects of exchange rate changes on the balance of cash held in foreign currencies		(29,594)	(3,429)	46,517	7,078
Cash and cash equivalents at end of the year	20	(193,224)	(11,543)	(158,177)	(7,854)
Represented by:
Cash in hand and at bank	20	113,193	6,761	12,644	628
Bank overdrafts	20	(306,417)	(18,304)	(170,821)	(8,482)
		(193,224)	(11,543)	(158,177)	(7,854)