- Zambeef has updated its guidance for year ending 30 September 2021 and now expects adjusted pre-ta profit to be 20-30% ahead of current market expectations.

Revenue is expected to remain in line with market expectations.

In accordance with the Lusaka Securities Exchange Listings Requirements, the board of directors of Zambeef Products has advised shareholders that the earnings per share for the half-year period ended 31 March 2021 is expected to be 3,290% higher in Kwacha (2,167% higher in USD) than that for the half-year period ended 31 March 2020.

The increase in earnings is predominantly due to the strong start that the company had to the financial year, delivering results of pre-pandemic levels.

The cost containment embarked on by management also continues to yield significant savings and contributed positively to the earnings. Improvements in the load shedding situation, following the good regional rains, resulted in reduced generator fuel expenditure and improved production efficiencies.

The company admitted that the half year period continued to present challenges in the operating environment, resulting from the Covid-19 pandemic and the previous 2020 economic uncertainties, despite greater stability compared to the second half of the 2020 financial year.

The rising inflation put pressure on consumer disposable incomes and reduced the share of wallet going towards food spend. Supply constraints on some of Zambeef's product lines further put pressure on cost of inputs.

Despite the challenges, demand for products, particular poultry products, remained strong allowing the company to remain inline with revenue expectations.

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