IN BRIEF: Zambeef Notes Zambian Kwacha's Depreciation Versus Dollar

Zambeef Products PLC - Lusaka, Zambia-based beef producer - Back in October said it expected to ...

Alliance News 26 November, 2020 | 5:08PM
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Zambeef Products PLC - Lusaka, Zambia-based beef producer - Back in October said it expected to report dollar-denominated revenue and earnings before interest, taxes, depreciation and amortisation in line with market forecasts, with Ebit and adjusted pretax profit more than 25% above market forecasts. Confirms this is still the case, but earnings per share for financial year ended September 30 are "expected to be 665% lower" in Kwacha terms than the year before.

Says financial year was characterised by a difficult operating environment, particularly in second half.

"The significant depreciation of the Zambian Kwacha against the US Dollar had an adverse impact on the pricing of imported production inputs and financing costs on the group's dollar denominated loans," company says.

Highlights that it still achieved "significant" revenue and Ebit growth, demonstrating its fundamental strength. Revenue for the year is expected at USD239.6 million and Ebit at USD13.0 million.

Current stock price: 5.25 pence

Year-to-date change: down 4.6%

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Zambeef Products PLC 5.95 GBX 8.18 -

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