Lusaka Securities Exchange – LuSE listed Zambeef (ISIN:ZM0000000201) advised its shareholders that its 1H (first half) Group Earnings per Share – EPS for the year period ended March 31, is forecast to be 3,290% higher in local currency terms (2,167% higher in USD) compared to a year ago in the same period. This was according to a Stock Exchange News – SENs dated June 03.
Attributing the solid performance was strong commencement of the financial year supported by an effective cost containment strategy that yielded significant savings in a turbulent operating environment. The cold chain retail food entity business performance took a positive cue from improved power rationing situation which evidently cushioned Zambeef’s operational expenditure leading to production efficiencies.
Zambia’s power outlook remains fairly positive with a healthier energy generation after a rise in dam levels following better precipitation in addition to a strong pipeline of 750MW to fire into the grid 2021. Load management has significantly subsided to benefit the input side of the business in decreased operational costs.
The cold chain and retail food business entity still faces upside risks posed by the worlds homogenous hurdle, COVID19 whose effects still strain the supply chains. Other exogenous factors weighing performance of revenue lines include spiralling inflation which continues to erode disposable incomes of clientele classes. Despite these risks the demand side for products remains fairly resilient as evidenced by the poultry side of the business.
The Group intends to announce its results for the half-year period ended March 31 in June 202 where headline earnings are K2.15billion ($102.5million) and an after tax profit of K53.9million ($2.6million).
The Kwacha Arbitrageur