Maravi

Zambeef records decrease in profits

Zambeef records decrease in profits
By Florence Bupe
Thu 10 Dec. 2009, 04:00 CAT

ZAMBEEF Products Plc Group of Companies has recorded a decrease in net profit from K37.5 billion in 2008 to K16 billion for the year ended September 30,2009.

Releasing the financial year end results at Pamodzi Hotel yesterday, company chief executive officer Carl Irwin said the 2009 financial year had been a challenge for Zambeef Products due to the economic crisis that affected the global economy.

“This has been a challenging year for the Zambeef Products Plc Group of Companies with profit after tax decreasing from K37.5 billion in 2008 to K16.0 billion in 2009 and EBITDA (expenses before interest, taxes, depreciation and amortisation) decreasing from K65.0 billion to K22.4 billion,” he explained.

Irwin, however, said despite the challenges faced during the financial year under review, the company generated K15.7 from operating activities for the year.

The main reasons for the decline in profits included a substantial depreciation in the kwacha which resulted in an exchange loss for the year, most of which is still unrealised.

High input costs also contributed significantly to the decreases as crops were planted at a time when requirements such as fertiliser were highly priced.

“The key reasons for the decrease in margins were substantial depreciation of the Zambian kwacha, crops planted at a time of high input prices but grain prices crashed subsequently,” he said.

Irwin said the company has managed to maintain a strong business position in the midst of the global economic recession, and expressed optimism that the factors that affected Zambeef’s performance in 2009 would be effectively addressed in the next financial year, thereby enhancing margins.

“Against the background of a global recession, financial crisis and unexpected trading conditions, Zambeef can be satisfied with its performance. Trading conditions and margins are normalising and the Zambian kwacha has appreciated, reversing some of the unrealised exchange losses,” said Irwin.

Zambeef is expected to boost its performance by expanding its operations in Nigeria, commissioning of a new modern stock feed plant and upgrading of retail outlets.

Labels: ZAMBEEF

posted by MrK @ 5:55 AM