Zambeef continues on growth path

…posts K210m profit

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BUUMBA CHIMBULU Writes
@SunZambian
ZAMBEEF products is well positioned to continue on the strong performance trajectory owing to the diversified and vertically integrated business operations, as the company posts an operating profit of K210.5 million as at September 30, this year.

The vertically integrated business operations, great brand portfolio and strong management positions the company for stringer performance, says Zambeef Chairman, Michael Mundashi.
Mr Mundashi said the Board believed the key to sustainable growth, while mitigating the effects of economic cycles lied in remaining committed to achieving strategic priorities.
As such, he explained, the key focus remained on the core divisions that generated sustainable and strong cash flows, while reducing debt to release cash for reinvestment in higher returning projects.
Mr Mundashi said this in a financial statement for the year ended September 30, 2020.
“The Group is committed to the continued strengthening of its earnings potential and unlocking value through reducing debt levels in the medium term.
“This will mitigate foreign exchange and interest rate risk exposures, and free up cash for reinvestment in higher returning projects,” he said.
He indicated that the board expected the macro-economic climate to remain challenging in the 2021 financial year, characterised by an increase in volatility.
Mr Mundashi said Zambeef continued to de-risk the business by focusing on the reduction of debt to reduce the impact of foreign currency volatility on future earnings.
The net debt for the Group declined by 41 percent in Dollar terms and 10 percent in Kwacha terms during the 2020 financial year.
“The country’s national debt level remains a threat to macro-economic stability in the short to medium term.
“We anticipate the COVID-19 pandemic will have minimal impact on our operations in 2021 as Zambia will adjust to living with the virus and resume life under the ‘new normal’” Mr Mundashi said.
Meanwhile, Zambeef Products has posted an operating profit of K210.5 million as at September 30 from K161 million the same period last year supported by growth in the stock feed and cold chain food products.

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