Zambeef overcomes currency headwinds

The African agricultural business, Zambeef Products, has reported a sharp upturn in revenues and profits although it is struggling against currency headwinds.

The group is one of the largest agri-businesses in Zambia, principally involved in the production and retailing of beef, chicken, pork, and dairy products. It also has operations in Nigeria and Ghana.

Revenues for the six months ending on March 31st were $127.6m, up 32% on the same period last year, while pre-tax profits gained 53% to $8.1m.

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The profit figure, however, excludes a rather nasty $9.7m provision for a tax bill on one of the group's subsidiaries: Zamanita.

Commenting on the results, Chairman Dr. Jacob Mwanza, said: "We are happy to see continued strong performance of our core business areas, aided by the continued growth of the Zambian economy, together with the expansion of Zambeef's operations.

"Our main challenges have been the weakening of the Zambian Kwacha (particularly against the US Dollar) the ZRA Zamanita tax liability, and supply and/or capacity constraints in meeting continued growth in demand for our core products."

Zambeef shares have struggled this year, down 22.7% since January, but the figures saw the stock gain 5.4% by 10:04.

BS