TSX runs higher on rate cut expectations
LUSAKA - Zambeef Products PLC (AIM:ZAM), a major food and agribusiness company, has announced that it expects its full-year 2025 financial results to fall short of market expectations due to economic headwinds. The Group anticipates revenue and gross profit to be approximately 10% and 3% below market forecasts, respectively. The company cites a weaker Zambian Kwacha and softer volume performance, driven by reduced consumer spending in an inflationary environment and strict monetary policy, as key factors for this downturn.
For the half-year ending on March 31, 2025, Zambeef reported growth in key cold chain product categories but overall performance did not meet expectations. The operational and economic challenges included the impact of the worst drought on record, resulting in a power deficit and high commodity prices, exchange rate volatility, and reduced government spending, all of which have pressured disposable incomes.
Despite these setbacks, Zambeef still expects its full-year profit before tax, reported in USD, to surpass the previous year’s figures. The Group has managed to achieve strong pricing in its Cropping business, which contributed to an increase in expected gross margin and EBIT margin for the current financial year.
Looking ahead to the second half of the financial year, macroeconomic challenges are expected to persist. However, the company forecasts inflation to stabilize and improved rainfall to alleviate electricity supply issues, potentially leading to a more favorable economic environment.
Zambeef’s half-year results for the period ending March 31, 2025, are scheduled to be released by the end of June 2025. The company advises shareholders that the information contained in this trading update has not been reviewed or reported on by external auditors.
Based in Zambia with operations in Nigeria and Ghana, Zambeef is a leading player in the region’s agribusiness sector, with 236 retail outlets and significant capacities in beef, chicken, pork, milk, dairy, and crop production.
This article is based on a press release statement from Zambeef Products PLC.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.