08 December 2025

 

 

 

 

 

Zambeef Products plc

("Zambeef" or the "Group")

 

Full year results for the year ended 30 September 2025

 

Zambeef (AIM: ZAM), the fully integrated cold chain food products ("CCFP") and retail business with operations in Zambia, Nigeria and Ghana, today announces its audited results for the year ended 30 September 2025.  

 

Financial Highlights

 

Figures in 000's		2025	2024	%		2025	2024	%
		ZMW	ZMW			USD	USD
Revenue		8,058,283	7,315,845	10.1%		302,602	295,113	2.5%
Change in fair value of biological assets		1,102,125	1,005,832	9.6%		39,275	40,574	-3.2%
Cost of sales		(6,234,772)	(5,846,559)	6.6%		(232,015)	(235,844)	-1.6%
Gross profit		2,925,636	2,475,118	18.2%		109,862	99,843	10.0%
Other income		23,380	27,926	-16.3%		878	1,127	-22.1%
Other net gains		4,759	(96,072)	-105.0%		179	(3,875)	-104.6%
Net Impairment losses on financial assets		(736)	(1,264)	-41.8%		(28)	(51)	-45.1%
Impairment of investment in associate		-	(34,370)	-100.0%		-	(1,386)	-100.0%
Distribution costs		(341,998)	(208,395)	64.1%		(12,843)	(8,406)	52.8%
Administrative expenses		(1,971,054)	(1,675,751)	17.6%		(74,015)	(67,598)	9.5%
Operating profit		639,987	487,192	31.4%		24,033	19,653	22.3%
Finance costs		(387,004)	(294,531)	31.4%		(14,533)	(11,881)	22.3%
Profit before taxation		252,983	192,661	31.3%		9,500	7,772	22.2%
Taxation charge		(27,865)	(12,565)	121.8%		(1,046)	(407)	157.1%
Group income for the year from continuing operations		225,118	180,096	25.0%		8,454	7,365	14.8%
Group income for the period		225,118	180,096	25.0%		8,454	7,365	14.8%
				-
EBITDA		945,198	732,657	29%		35,496	30,409	16.7%
Gross Profit Margin		36.3%	33.8%			36.3%	33.8%
EBITDA Margin		11.7%	10.0%			11.7%	10.3%
Debt/Equity (Gearing)		33.8%	41.7%			33.8%	41.7%
Debt-To-EBITDA		2.3	2.8	-19.3%		2.5	2.6	-1.0%

 

 

 

 

PERFORMANCE OVERVIEW

 

Zambeef delivered a resilient performance for the financial year ended 30 September 2025, achieving earnings growth despite operating in a challenging macroeconomic environment. The year was marked by currency volatility, elevated input costs, and continued national power shortages driven by the aftermath of the prior year's severe drought. These conditions placed upward pressure on production costs, particularly through increased reliance on generator power and costly imported electricity. Despite these headwinds, the Group generated improved volumes across key categories, supported by strong commercial execution, disciplined cost management, and the ongoing benefits of operational optimisation initiatives.

 

The Group continued to make progress on its strategic priorities, including investment in high-impact projects, optimisation of core operations, and the phased divestment of non-core activities. Newly commissioned assets and capacity upgrades enhanced operational efficiency and strengthened Zambeef's ability to meet market demand. This combination of strategic investment and disciplined execution underpinned the Group's solid performance and reinforced its position as a leading and resilient player in Zambia's agri-business and food value chain.

Against this backdrop, the Group delivered revenue of ZMW 8.06 billion (USD 302.6 million) and a gross profit of ZMW 2.9 billion (USD 109.9 million). This reflects year-on-year growth of 10.1% and 18.2% in kwacha terms, and increases of 2.5% and 10.0% in US dollar terms, respectively.

 

KEY FINANCIAL HIGHLIGHTS

 

Rising costs of key inputs particularly energy, imported materials, and grain continued to place upward pressure on production expenses across the Group which impacted the Group's volume growth.

 

Finance costs rose by 31.4%, largely due to increased borrowings and the impact of interest rate rises steming from the Bank of Zambia tightening Monetary Policy.

 

Nonetheless, the Group delivered an operating profit of ZMW 640.0 million (USD 24.0 million), reflecting a year-on-year increase of 31.4% in kwacha terms and 22.3% in US dollar terms, up from ZMW 487.2 million (USD 19.6 million) in the prior year. This performance is a testament to the strength of our commercial strategy and the effective implementation of our strategic growth initiatives.

 

Zambeef's management remains committed to focusing on core divisions to generate cash flow that will be channelled towards de-risking the business. Our plans are underpinned by:

 

§ Strengthening our core business: We are dedicated to bolstering our core business through targeted investments aimed at expanding our market share and solidifying our position in key sectors.

 

§ Human Capital Development: We recognize the importance of our workforce in driving organizational success. Thus, we are crafting a tailored human capital strategy to align with our organizational needs, ensuring that our employees are equipped with the skills and resources necessary to thrive in a dynamic environment.

 

§ Enhancing Strategic Partnerships: Strategic partnerships play a vital role in enhancing our competitive edge and market position. We are committed to strengthening these partnerships to capitalize on synergies and opportunities for growth.

 

§ Divestiture of Non-Core Assets: To optimize resource allocation and focus on our core business areas, we are actively pursuing the divestiture of non-core assets.

 

 

 

Commenting on these results, Chairman Mr. Patrick Wanjelani said:

 

"Management remained steadfast in executing the Group's strategic priorities of maximizing revenue, driving volume growth, and optimizing costs. Through these focused efforts, Zambeef delivered improved profitability compared to the prior year, highlighting the strength and resilience of its vertically integrated business model. The 2025 performance reflects a disciplined and adaptable organisation committed to operational excellence and the creation of sustainable, long-term value for shareholders and stakeholders."

 

 

Copies of Zambeef's Annual Report and Accounts for the year ended 30 September 2025 and Notice of AGM will shortly be sent to shareholders and made available on the Group's website and a further announcement will be made at this time.

 

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

 

For further information, please visit www.zambeefplc.com or contact:

 

Zambeef Products plc	Tel: +260 (0) 211 369003
Faith Mukutu, Chief Executive Officer
Patrick Kalifungwa, Chief Financial Officer
Cavendish (Nominated Adviser and Broker)	Tel: +44 (0) 20 7220 0500
Ed Frisby/Isaac Hooper (Corporate Finance)
Tim Redfern (ECM)
Autus Securities Limited	Tel: +260 (0) 761 002 002
Mataka Nkhoma, Sponsoring Broker

 

 

About Zambeef Products PLC

 

Zambeef Products plc is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the region, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, fish, flour and stockfeed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana. It has 248 retail outlets throughout Zambia.

 

The Company is one of the largest suppliers of beef in Zambia and currently consists of five (5) beef abattoirs and three (3) feedlots located throughout Zambia, with a capacity to slaughter 230,000 cattle a year. It is also one of the largest chicken producers in Zambia, with a capacity of 12.5 million broilers and 31.5 million-day-old chicks a year. It is one of the largest piggeries, pig abattoirs and pork processing plants in Zambia, with a capacity to slaughter 102,000 pigs a year, while its dairy has a capacity of 140,000 litres per day.

 

The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 7,254 hectares of row crops under irrigation, which are planted twice a year, and a further 7,943 hectares of rainfed/dry-land crops available for planting. www.zambeefplc.com

 

 

 

Chairmans Report

 

Dear Shareholder,

This report highlights our achievements, acknowledges the challenges we face, and reaffirms our dedication to securing a resilient and prosperous future for Zambeef.

During the year ended 30 September 2025, the Group continued to operate in a tough market environment marked by subdued consumer spending amidst tight monetary conditions. The Bank of Zambia's continued tight monetary policy, implemented to contain inflation and manage exchange rate volatility, has helped stabilise key macroeconomic indicators but maintained pressure on liquidity and consumer demand. While the government's engagement with international bondholders has advanced the debt restructuring process, underlying economic headwinds have continued to affect business operations across sectors.

 

The year also saw mixed macroeconomic developments. Total copper production increased, supported by the recovery of key mines and favourable global prices. However, the broader economy continued to face challenges, including energy shortages that increased the cost of key inputs such as electricity and diesel that resulted in increased cost of prodcution. The residual effects of the El Niño weather phenomenon exerted additional strain on cost of key grain inputs such Maize, partuclarly in the first half of the finaincial year. Inflation, which closed at 12.3% in September 2025, showed a gradual downward trend, an encouraging sign that the central bank's policy measures are beginning to yield positive results.

Management remained steadfast in executing the Group's strategic priorities of maximizing revenue, driving volume growth, and optimizing costs. Through these focused efforts, Zambeef delivered improved profitability compared to the prior year, highlighting the strength and resilience of its vertically integrated business model. The 2025 performance reflects a disciplined and adaptable organisation committed to operational excellence and the creation of sustainable, long-term value for shareholders and stakeholders.

Strategy

 

The Board remains steadfast in its commitment to achieving the Group's strategic objectives, undeterred by seasonal market dynamics and economic fluctuations. Our five-year strategy is centered on the following key pillars:

 

1.   Strengthening our core business: We remain committed to reinforcing our core operations through strategic investments that expand our market share and solidify our presence in key sectors. Our focus is on broadening our market reach and diversifying our product portfolio to capture emerging opportunities and drive sustainable growth.

 

2.   Human Capital Development: Our focused human capital strategy is designed to ensure that our workforce is well-equipped and empowered to drive the Group's success. By prioritizing skills development aligned with our strategic objectives, we continue to cultivate a motivated and capable team that underpins sustainable growth and operational excellence.

 

3.   Enhancing Strategic Partnerships: Strategic partnerships play a vital role in enhancing our competitive edge and market position. We are committed to strengthening these partnerships to capitalize on synergies and opportunities for growth. Our commitment to our customers, suppliers, lenders and other partners remains resolute.

 

4.   Divestiture of Non-Core Assets: Linked to the pillar to focus on our core business and our persuit to optimize resource allocation, we are actively pursuing divestiture of non-core assets.

 

 

 

 

Chairman's Report (continued)

 

Progress on our $100 million expansion program, announced in 2022, is making significant strides. The expansion of the Mpongwe row cropping capacity has yielded positive results, with the third winter harvest this passed winter season. The milling and hatchery facilities were successfully commissioned in October 2024, while the new cheese plant was completed and commissioned in April 2025.

 

Outlook

 

Looking ahead, as the current macroeconomic situation continues to improve, expectation is that there will be the easing off of the monetary policy which should in turn increase money supply and therefore demand for our products. With our strong brand presence and integrated business model, the Group is well-positioned to capitalise on emerging growth opportunities and adapt to changing consumer dynamics.

 

We remain focused on strengthening the balance sheet, enhancing cash flow, and delivering long-term shareholder value.

 

British International Investment Plc (BII)

 

BII is the Company's largest ordinary shareholder with 52.6 million ordinary shares and  100,057,658 convertible redeemable preference shares ("Preference Shares") in Zambeef Products plc. The Company has the right to redeem all or part of the Preference Shares at the redemption price, which would give BII a 12% compounded annual return on their investment, subject to a minimum of USD 0.77 per share (less dividends received). However, the likelihood of such a repayment by the Company in this financial year, or in the medium term, is currently considered by the Board to be uncertain. The eighth anniversary (16 September 2024) of BII's investment in the Company materially increased BII's conversion rights on their Preference Shares from one-for-one new ordinary share, to one for 3.0833 (recurring) new ordinary shares.

 

Acknowledgement

I extend my heartfelt gratitude to my fellow Board members for their dedicated leadership over the past year, and I sincerely appreciate the tireless efforts of our management and staff in delivering another year of remarkable performance. The resilience and determination demonstrated in overcoming challenges reflect the strength of our team. I take pride in what we have achieved together and look forward with optimism to the opportunities that lie ahead. United in purpose, we will continue to build on this strong foundation of success.

Amid the complexities of the current environment, we remain committed to driving sustainable growth and fulfilling our commitments to shareholders.

 

Patrick Wanjelani

Chairman

Chief Executive Officer's Report

Overview

 

The year ended 30th September 2025 saw the Group deliver profitability growth, supported by increased volumes across key categories compared to the previous year. This performance underscores our agility and adaptability in navigating a dynamic market and economic environment. The management team's unwavering commitment to driving top-line growth through effective revenue strategies and maintaining disciplined cost control has been instrumental in achieving these positive results.

 

The operating environment remained challenging, shaped by the residual effects of the previous year's severe drought, which continued to affect the country's hydroelectric generation capacity. This resulted in prolonged power deficits that increased reliance on genset fuel and imported electricity, leading to higher operating costs and intermittent production disruptions. These pressures were compounded by elevated prices for key grain inputs, particularly maize, in the first half of the financial year.

 

Despite these headwinds, Zambeef demonstrated resilience through proactive cost management, supply chain optimisation, and strengthened operational efficiency. Our ability to sustain growth in such a demanding environment reflects the strength of our integrated business model, the dedication of our people, and the trust placed in us by our customers, suppliers, and communities.

 

Operational Excellence

 

In the year, Zambeef reaffirmed its commitment to operational excellence, quality, and compliance by achieving several important certifications across its operations.

 

Kalundu Dairy achieved full certification as a Disease-Free Compartment by the Department of Veterinary Services, in line with World Organisation for Animal Health (WOAH) standards. This milestone affirms the division's world-class biosecurity systems, ensuring business continuity even during national disease outbreaks, strengthening customer confidence, and enhancing our brand reputation. This breakthrough reinforces Zambeef's readiness for expanded operations and export potential.

 

Additionally, Zamhatch, Kalundu Dairy, Zambeef Cropping Division, and the Lusaka and Mpongwe sites of Novatek were all certified under the GlobalG.A.P and Smart Livestock Practices (S.L.P) programs. This demonstrates Zambeef's dedication to sustainable, responsible, and high-quality production.

 

These accomplishments highlight our commitment to continuous improvement and alignment with national and international standards, further establishing Zambeef as a trusted leader in food safety, sustainability, and animal welfare within Zambia's agribusiness sector.

 

Supporting National Food Security

 

The Group's strategic expansion of maize production significantly enhanced national food security during this period. Zambeef supplied 26,500 metric tonnes of both Winter and Early-planted maize to the Government through the Food Reserve Agency, accounting for nearly 25% of the total tonnes contracted from commercial farmers. This contribution underscores Zambeef's role as a reliable partner to the Government in stabilising national grain reserves and ensuring food availability. Additionally, it reinforces our commitment to supporting the broader agricultural value chain, benefiting the livelihoods of small-scale producers by contributing to a more resilient and well-supplied market.

 

 

Financial Performance

 

The Group delivered strong results for the year ended 30 September 2025, navigating a trading environment marked by energy shortages, higher input costs, and weak consumer spending. Through effective revenue management and operational efficiency, the business achieved volume growth across key categories, demonstrating resilience and continued momentum from the previous year.

 

The Group achieved a revenue of ZMW 8.1 billion (USD 302.6 million), along with a gross profit of ZMW 2.9 billion (USD 109.9 million). This marks a year-on-year increase of 10.1% in revenue and 18.2% in gross profit in Kwacha terms and 2.5% in revenue and 10% in Gross Profit in US Dollar terms, respectively.

 

Furthermore, the Group delivered an operating profit of ZMW 640.0 million (USD 24.0 million), marking an increase of 31.4% and 22.3% in Kwacha and US Dollar terms respectively, compared to the prior year's ZMW 487.2 million (USD 19.7 million). This growth underscores the effectiveness of our commercial strategy and the continued success of the commissioned strategic expansion projects.

 

The Group is committed to strengthening its brand equity while consistently delivering high-quality products to our customers. By leveraging our diversified and vertically integrated business model, along with a portfolio of well-established brands and a capable management team, we are strategically positioned to take advantage of emerging growth opportunities and effectively manage potential risks. This strong foundation enables us to respond with resilience and agility in a shifting market landscape.

 

Strategic focus

 

Our strategic priorities focus on maximizing the use of our existing assets, enhancing returns, and ensuring sustained profitability across our core business segments. Zambeef's integrated model continues to prove its strength, allowing us to achieve efficiencies throughout the value chain while maintaining our leadership in key food categories.

 

Throughout the year, we continued to implement our medium-term expansion program, which totals $100 million. This program is progressing well and involves significant investments in Cropping, Milling, Stockfeed, Dairy, and Poultry. These projects aim to increase capacity, improve operational efficiencies, and support long-term profitability.

 

A significant achievement under this program was the launch of the Zambeef Cheese Plant at Huntley Farm in Chisamba. This facility represents a major investment in Zambia's agro-processing sector and is designed to produce up to 3.4 tonnes of cheese daily using locally sourced milk. This investment not only helps to grow the local dairy industry but also reduces Zambia's reliance on imported dairy products and empowers small-scale farmers. It reflects our commitment to fostering inclusive growth and creating value throughout the agricultural ecosystem.

 

At the same time, the Group continues to divest non-core operations and reinvest in high-impact areas that enhance cash generation and improve return on capital employed. This disciplined approach ensures that every investment contributes to efficiency, competitiveness, and shareholder value.

 

Looking ahead, our strategic focus remains on building a more efficient, profitable, and resilient business that delivers sustainable value for all stakeholders while supporting Zambia's broader agricultural and industrial development.

 

 

 

 

 

Divisional Performance

 

Table 1 (ZMW) and Table 2 (USD) below provide a summary of the consolidated performance of the key business divisions reported at an operating profit level.

 

Table 1: Divisional financial summary in ZMW'000

 

 

Table 2: Divisional financial summary in USD'000

   

 

Retailing & Cold Chain Food Products

 

The Retailing and Cold Chain Food Products division delivered a resilient performance in 2025, achieving volume growth across most key categories despite a highly competitive and financially constrained environment. Disciplined sales execution and strategic price optimisation supported topline growth in kwacha terms.

 

Gross profit increased by 23% in kwacha and 15% in dollar terms year-on-year, driven by volume growth, price optimisation, and improved operational efficiency. The business continues to collaborate with governemnet in the management of animal disease outbreak. Enhanced biosecurity protocols and staff training were implemented during the year as part of curbing the animal disease risk.

 

The Beef segment remained robust, supported by strong growth in retail and alternative channels. The quality of cattle from bulking centres was consistent, resulting in high average carcass weights. Despite tight animal supply towards the end of the year, prices stayed competitive, allowing the business to maintain good margins.

 

The Poultry segment saw an 11% increase in broiler production and higher sales of day-old chicks, thanks to the commissioning of a new hatchery. Although production efficiency slightly declined, the volume growth was sufficient to offset its impact.

 

The Dairy segment achieved double-digit volume growth, driven by strong demand for Lacto and drinking yogurt, increased cheese production, and the successful launch of the Favorite Food brand yogurt line. Zammilk solidified its position as the leader in the fresh milk market.

 

Cropping and Milling

 

The Cropping division outperformed expectations, achieving strong financial results due to improved summer crop yields following a favourable rainfall season, stable commodity prices, and enhanced operational efficiencies. However, the overall profitability was pressured by high imported electricity costs and increased tariffs.

 

The Stockfeed segment also showed robust performance despite challenges such as power outages, ageing equipment issues, and constraints in raw material supply. Much of the feed business was driven by internal Zambeef farms and retail channels. Although sales softened in the late year due to economic pressures, falling maize and soya prices, along with a stronger local currency, helped improve margins.

 

The Flour segment faced a challenging yet strategically significant year. Intense competition and cost pressures continued, but Zamflour achieved year-on-year volume growth, supported by the successful commissioning of the new wheat milling plant in Mpongwe. Moving forward, the focus will be on stabilising margins, leveraging internal wheat supply, and commissioning the pasta plant to unlock new opportunities for growth and value creation.

 

Outlook

 

Looking ahead, maintaining our strong brand presence will be crucial for sustaining customer loyalty and building market confidence. Our vertically integrated business model offers a significant competitive advantage, ensuring a reliable supply chain and a consistent market for our products.

 

Zambia's economy is showing encouraging signs of recovery, bolstered by advancements in debt restructuring, improved agricultural output, and increased copper production. These positive developments create a more favorable business environment for Zambeef.

 

We will continue to strengthen our balance sheet by divesting non-core assets, optimising our existing resources, and pursuing targeted capacity expansion. These initiatives will enhance our financial resilience and ensure sustainable value creation for shareholders. With a solid foundation and a clear strategic direction, Zambeef is well-positioned for continued growth in the years ahead

 

Acknowledgements

 

I would like to extend my gratitude to our Board of Directors for their guidance and support. I am also indebted, to all our dedicated staff and partners, for their invaluable contributions to the ongoing success of the Group.

 

 

 

Faith Mukutu

Chief Executive Officer

 

 

Statement of profit or loss and other comprehensive income

 

	Notes	Group		Company
		2025	2024	2025	2024
		K'000	K'000	K'000	K'000
Revenue from contracts with customers	6	8,058,283	7,315,845	7,759,294	6,939,511
Change in fair value of biological assets	18(i)	1,102,125	1,005,832	1,104,386	899,062
Cost of goods sold	9	(6,234,772)	(5,846,559)	(6,402,383)	(5,826,756)
Gross profit		2,925,636	2,475,118	2,461,297	2,011,817
Other income	7	23,380	27,926	23,395	27,261
Other net gains/(losses)	8	4,759	(96,072)	9,097	(108,391)
Net impairment losses on financial assets	4(b)	(736)	(1,264)	(3,501)	1,802
Impairment of investment in associate	17(ii)	-	(34,370)	-	(34,370)
Distribution expenses	9	(341,998)	(208,395)	(306,070)	(190,771)
Administrative expenses	9	(1,971,054)	(1,675,751)	(1,667,170)	(1,424,752)
Operating profit		639,987	487,192	517,048	282,596
Finance costs	10	(387,004)	(294,531)	(284,344)	(294,188)
Profit before income tax		252,983	192,661	232,704	(11,592)
Income tax expense	12	(27,865)	(12,565)	(17,742)	18,228
Profit for the year		225,118	180,096	214,962	6,636
Profit attributable to:
Owners of Zambeef Products PLC		225,820	179,840	214,962	6,636
Non-controlling interests	16(b)	(702)	256	-	-
		225,118	180,096	214,962	6,636
Other comprehensive income:
Items that maybe reclassified to profit or loss
Translation differences - foreign operations	24	2,677	(35,821)	-	-
Items not reclassified to profit or loss
Revaluation surplus	25	1,322,644	5,734	1,153,145	-
Actuarial remeasurement losses	28(i)	(558)	(2,523)	(558)	(2,523)
Deferred income tax	27	(137,300)	133,328	(122,331)	128,455
Other comprehensive income for the year		1,187,463	100,718	1,030,256	125,932
Total comprehensive income for the year		1,412,581	280,814	1,245,218	132,568