By BUUMBA CHIMBULU
A 27 percent growth in operating profit to K267.3 million has been posted by Zambeef Products plc as at September 30, 2021.
This is against the K210 million which was recorded during the same period last year owing to effective pricing mechanisms, according to the financial results for the year ended September 30, 2021.
During the period under review, the growth in operating profit is also attributed to efficient management of overhead costs.
“Favourable prices across protein categories resulted in increased revenue for the cold chain food products despite supply related volumes challenges. During the year, our board embarked on five year strategic refresh process for the group.
“The strategy developed will position the group to tackle the challenges ahead while capitalising on opportunities presented such as focusing and strengthening our core business by investing in capacity and grow market share,” according to the results.
On the Zamshu division, the company says shoe sales grew by 47 percent to 102,704 pairs compared to the 70,055 pairs sold last year supported by the easing of coronavirus restrictions.
It says Zamleather margins also increased as the division sold more high-grade leather and value-added shoes.
Similarly, flour sales volumes for the year increased by 92 percent due to new sales channels and product offering.
Meanwhile, the company stated that the fourth wave of Covid-19 following the announcement of a new Omicron virus, removal of subsidies which would result in fuel and electricity tariff increments might negatively affect the business.
On the positive side, 2022 also presents opportunities for the business such as the significant appreciation of the Kwacha owing to improved investor sentiment following the coming of the new dawn government and improved operating environment.
The Kwacha is trading below K17 range.
Zambeef posts K267.3mn profit
