Zambeef experiences strong profit growth
In the year to 30 September 2015, Zambeef’s operating profits rose by ZMW106m ($9.6m) to ZMW162m ($14.7m).
In the previous year, operating profits of ZMW56.2m ($5.12m) were reported.
This year, shareholders of Zambeef – which has a market value of around $70m – were informed of the company’s soaring profits at its annual general meeting in the capital Lusaka, on 21 December.
The company describes itself as the largest beef producer in Zambia, and also operates in the pork, poultry, dairy and leather verticals.
The strong year of growth has been credited by joint CEO Carl Irwin to Zambeef’s to the company’s cold chain food production and distribution. Strong performance in these areas is believed to have helped drive operating profit figures forward.
“Despite significant macro-economic challenges, the group’s performance was commendable, particularly in our core cold chain food products business, and we look forward to growing this business further, both in Zambia and the wider region,” Irwin said.
Some of the regions Zambeef are keen to strengthen their presence in, include the South African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). Expansion and increased operational ability in SADC and COMESA countries like Ghana and Nigeria will help to develop the business into a strong “regional food supplier” according to Irwin.
CEO of Zambeef Francis Grogan, said: “The year has seen a renewed focus by Zambeef on its cold chain food product operations. These are cash generating operations that will form the cornerstone of Zambeef’s future success.
“Zambeef has had a successful operational year despite the challenges in the economy and retains a positive outlook towards its operations and has set sights on continuing to grow its operations in the next financial year,” he added.
Zambeef slaughters around 55,000 cattle per annum, as well as 50,000 pigs and 6m chickens and employ over 5,000 people.