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LUSAKA - Zambeef Products plc (AIM:ZAM), a major integrated food products and retail business in Zambia, reported a 28.3% increase in operating profit to ZMW 247.7 million (USD 9 million) for the half-year ended March 31, 2025.
The company achieved revenue of ZMW 3.8 billion (USD 139.7 million), representing a 12.5% year-on-year increase in local currency terms, though this translated to a 3.1% decrease when measured in US dollars. Gross profit rose 26.2% to ZMW 1.4 billion (USD 51.2 million).
Despite the improved operating performance, Zambeef’s net profit declined 43.1% to ZMW 34.5 million (USD 1.3 million), primarily due to an 80.4% increase in finance costs and higher taxation charges.
The company faced significant challenges during the period, including reduced consumer spending, rising input costs, currency depreciation, and persistent power supply issues. EBITDA increased 22.7% to ZMW 364.5 million (USD 13.3 million), with EBITDA margin improving to 9.5% from 8.7% in the previous year.
"Our core divisions continue to anchor the Group’s financial strength, with strategic investments across key segments delivering positive returns," the company stated in its press release. Zambeef’s vertically integrated business model has provided resilience in navigating macroeconomic headwinds.
The company’s expansion program, announced in 2022, continues to progress with new milling and hatchery facilities commissioned in October 2024 and a new cheese plant completed in April 2025.
Looking ahead, Zambeef expects a forecast bumper harvest and improved summer crop yields to enhance profitability in its Cropping division while also injecting liquidity into the economy through increased earnings by small-scale farmers.
This article is based on a press release statement from Zambeef Products plc.
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