Zambeef Reports Solid Revenue Growth Despite Rising Costs
Zambeef Products plc (AIM: ZAM), the leading integrated cold chain foods and retail group operating across Zambia, Nigeria and Ghana, has released a trading update for the year ended 30 September 2025, signalling resilient operational performance despite a challenging economic environment.
The Group anticipates revenue to be moderately ahead of market expectations, while operating profit is expected to broadly align with forecasts, both in USD. This performance reflects strong underlying operations, volume growth, and disciplined cost management.
However, profit before tax is projected to fall short of market expectations by approximately 10–15%, primarily due to rising financing costs. Profit after tax is anticipated to be 20–25% lower than expected, impacted by higher finance costs and increased deferred tax arising from timing differences in cost accounting for tax purposes.
During the financial year, Zambeef focused on driving revenue through volume growth and pricing efficiency, alongside cost optimisation. These efforts delivered year-on-year growth in operating profit and profit before tax, highlighting the strength of the Group’s vertically integrated business model. The bumper harvest season contributed cost benefits across the value chain, particularly in the final quarter.
The ongoing energy crisis in the region, resulting in a persistent power supply deficit, has elevated production costs due to reliance on expensive backup and imported power, putting pressure on profit margins.
Despite limited consumer spending and broader economic headwinds, the Group notes positive macroeconomic developments towards the end of the financial year, suggesting a favourable response to fiscal and monetary policy measures.
Zambeef expects to release its full financial results for the year ending 30 September 2025 by the end of December 2025. The trading update has not been reviewed or reported on by the Company’s external auditors.
