ZAFFICO Reports Half-Year Profit of ZMW 262 Million Amid Rising Sales
Zambia Forestry and Forest Industries Corporation Plc (ZAFFICO) has announced a profit after tax of ZMW 262 million for the half-year ended 30 June 2025, down from ZMW 378 million during the same period in 2024. The decrease was largely attributed to a smaller gain in the fair value of biological assets compared to last year.
Despite the decline in profit, ZAFFICO recorded a 71 per cent increase in total sales, which rose to ZMW 203 million from ZMW 119 million in the same period last year. The boost in revenue was driven primarily by increased pine round wood thinning activities.
Operating expenses for the half-year amounted to ZMW 160 million, slightly up from ZMW 153 million in 2024, mainly due to inflationary adjustments and ongoing plantation management activities. The Corporation also invested in value addition programmes to strengthen its forestry operations.
Total assets grew to ZMW 9,121 million as at 30 June 2025, up from ZMW 8,144 million in June 2024, reflecting the fair value appreciation of biological assets and the acquisition of additional assets to support value addition initiatives. Shareholders’ funds increased to ZMW 7,747 million from ZMW 7,236 million in June 2024.
ZAFFICO’s cash position also improved significantly, closing the period with ZMW 233 million, compared to ZMW 13 million in the same period last year. This was supported by ringfenced funding of ZMW 200 million for the development of a value addition factory.
Looking ahead, the Corporation expects further revenue growth in the second half of 2025, driven by the yet-to-be-commissioned sawmill plant and a newly signed contract for treated poles. ZAFFICO has completed 75 per cent of the sawmill construction and anticipates commissioning it later this year.
The company is also prioritising operational efficiency through cost optimisation, technology adoption, digitalisation, and mechanisation, while maintaining its commitment to environmental sustainability and community development.
By leveraging innovation and expanding value addition, ZAFFICO aims to strengthen its position as a leading player in Zambia’s forestry industry.
This is contained in a statement issued by Mulawo Mwaba, Company Secretary, ZAFFICO Plc.
