- Zambeef expects turnover and pre-tax profits excluding the Zamanita tax liability provision, to be in line with market expectations.

Driven by continued growth in the Zambian economy, trading conditions over the financial year have remained strong. Demand for all product lines continues to increase at a rapid rate.

Management are focussing on prioritising the upgrade of facilities, processes and production to satisfy Zambeef's customers and manage the Group's growth.

All the meat divisions, (Beef, Pork and Chicken) have performed well. Turnover, gross profits and margins in these divisions have increased through a combination of price rises and higher volumes.

The Stockfeed division has had a particularly good year and is recognised as the quality producer of feed in Zambia. We are also expecting our Cropping division to perform strongly.

Zamanita's gross margins will be adversely affected in view of the ten month shut down of the crushing plant for the upgrade, which will result in Zamanita only crushing 9,000 MT of soya this financial year.

Eggs, (accounting for two per cent. of FY 2011 Group turnover) and Milk (accounting for four per cent. of FY 2011 Group turnover) divisions have each had individual issues and not performed so strongly, but the prospects in these divisions remain good for 2013.

At 9:56am: [LON:ZAM] share price was 0p at 36p

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