Zambeef Products PLC - Lusaka, Zambia-based cold chain foods and retail business with operations in Zambia, Nigeria and Ghana - Says product demand has increased with volume growth across most categories during half year ended March 31, supported by price moderation strategy. Gross margins adversely impacted by lower than expected selling prices and higher input costs, including increased genset diesel costs in the first quarter of 2023. Cropping division was hurt by the price of soya beans decreasing 71%; this was exacerbated by reduced yields but partially offset by higher maize price. However the higher maize price put additional pressure on stock feed margins.

Zambeef says: "The operating environment was characterised by increased competition, no real growth in consumer spending and unstable macroeconomic fundamental effects, largely driven by delayed finalisation of [Zambia's] debt restructuring."

Gross profit for the year ending September 30 is expected to be between 8% and 12% behind market expectations due to aforementioned lower prices and higher costs. However, revenue, pretax profit and adjusted earnings before interest, tax, depreciation and amortisation "are expected to be in line with market expectations".

Current stock price: 7.16 pence, down 1.2% in London on Wednesday

12-month change: up 2.3%

By Emma Curzon, Alliance News reporter

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