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Zambeef Products PLC (ZAM)

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Friday 11 June, 2021

Zambeef Products PLC

Half-year Report

RNS Number : 6562B
Zambeef Products PLC
11 June 2021
 

 

Zambeef Products plc

("Zambeef" or the "Group")

 

Interim results for the Half Year Ended 31 March 2021

 

Zambeef (AIM: ZAM), the fully integrated cold chain foods and retail business with operations in Zambia, Nigeria and Ghana, today announces its results for the half-year ended 31 March 2021.

 

Financial Highlights

Figures in 000's

 

2021

2020

%

 

2021

2020

%

 

 

ZMW

ZMW

 

USD

USD

 

 

 

 

 

 

 

 

 

Revenue

 

2,150,473

1,797,633

20%

 

102,501

129,233

-21%

Cost of sales

 

(1,411,049)

(1,171,504)

20%

 

(67,257)

(84,220)

-20%

Gross profit

 

739,424

626,129

18%

 

35,244

45,013

-22%

Administrative expenses

 

(584,654)

(500,630)

17%

 

(27,867)

(35,991)

-23%

Operating profit

 

154,770

125,499

23%

 

7,377

9,022

-18%

Share of loss equity accounted investment

 

(915)

(1,898)

-52%

 

(44)

(136)

-68%

Exchange losses

 

(42,558)

(62,870)

-32%

 

(2,029)

(4,520)

-55%

Finance costs

 

(56,360)

(48,241)

17%

 

(2,686)

(3,468)

-23%

Profit before taxation

 

54,937

12,490

340%

 

2,618

898

192%

Taxation charge

 

(21,846)

(927)

2257%

 

(1,041)

(67)

1454%

Group (loss)/profit for the period from continued operations

 

33,091

11,563

186%

 

1,577

831

90%

Profit/(Loss) from discontinued operations

 

20,843

(9,423)

-321%

 

993

(677)

-247%

Total Profit for the period

 

53,934

2,140

2420%

 

2,570

154

1569%

EBITDA

 

 259,888

 182,665

42%

 

12,387

13,141

-6%

Gross Profit Margin

 

34.38%

34.83%

 

34.38%

34.83%

 

EBITDA Margin

 

12.09%

10.16%

 

 

12.09%

10.16%

 

Debt/Equity (Gearing)

 

27.6%

28.9%

 

 

27.57%

28.93%

 

Debt-To-EBITDA

 

3.88

5.48

 

 

3.88

5.48

 

                   

 

 

PERFORMANCE OVERVIEW

 

The Group had a strong start to the financial year, delivering results ahead of pre-pandemic levels. Demand for products, particularly poultry products, remained strong allowing the Group to remain in line with revenue expectations. The cost containment embarked on by management also continued to yield significant savings and contributed positively to the results. Improvements in the load shedding situation, following the good regional rains, resulted in reduced generator fuel costs and improved production efficiencies.

 

Notwithstanding, the half year period continued to present challenges in the operating environment, resulting from the Covid-19 pandemic and the previous 2020 economic uncertainties, despite greater stability compared to the second half of the 2020 financial year. The rising inflation put pressure on consumer disposable income and reduced the share of wallet going towards food spend. Supply constraints on some of Zambeef's product lines further put pressure on cost of inputs.

 

 

 

 

 

KEY FINANCIAL HIGHLIGHTS

 

Revenue was ZMW2.2 billion (USD103 million) and we achieved a gross profit of ZMW739.4 million (USD35.2 million), measuring 20% and 18% above the prior year in kwacha terms, but both down by 21% and 22% in USD terms, respectively. The performance in USD was adversely impacted by the steady depreciation of the local currency.

 

The Group's strong performance was driven by growth in the poultry, retail and cropping divisions. Management continued optimising top line growth through revenue management while the continued cost control measures helped deliver strong Earnings Before Interest Taxes, Depreciation and Amortisation (EBITDA).

 

The profitability was mainly driven by cropping, increased volumes and margins in the stock feed division and Retail and Cold Chain Food Products which is in line with our strategic imperative of consistent revenue growth through expansion of our retail network.

 

Despite being slightly lower than the prior year (measured in USD), exchange losses and financing costs remained high in kwacha terms, eroding bottom-line performance. The depreciation of the kwacha led to increased financing costs and exchange losses on our dollar denominated debt, notwithstanding continued principal repayments during the period.

 

Zambeef's Total Profit for the period increased from ZMW2.1m to ZMW53.9m (USD0.154m to USD2.57m).

 

Commenting on these results, the Chairman, Mr Michael Mundashi said:

 

"Despite the macroeconomic headwinds and Covid-19 related uncertainties continuing into the current year, we saw a relatively more stable environment during the period under review in terms of the rate of depreciation of the kwacha. Despite these challenges, the Group generated an operating profit, including discontinued operations, of ZMW175.6 million (USD8.4 million) compared to ZMW116 million (USD8.3 million) achieved in first half of the previous financial year. This achievement, in the face of such economic and market difficulties, illustrates the Group's fundamental strengths as a diversified and resilient business.

 

"The Board remains committed to achieving the Group's strategic priorities while navigating the seasonal market and economic challenges. The focus will be on optimising the assets of core businesses to pay down debt and to invest for the future.

 

"The macro-economic climate is expected to remain challenging for Zambia in 2021, characterised by high national debt levels and continued foreign currency supply constraints which could negatively affect business activity across the economy.

 

"The Group remains committed to delivering value to shareholders and is positioned to navigate the turmoil while capitalising on opportunities."

 

 

For further information, please visit www.zambeefplc.com or contact:

 

Zambeef Products plc

  Tel: +260 (0) 211 369003

Walter Roodt 

Faith Mukutu

 

finnCap (Nominated Adviser and Broker)   Tel: +44 (0) 20 7220 0500

Ed Frisby/Kate Bannatyne/Tim Harper (Corporate Finance) 

Tim Redfern/Barney Hayward (ECM) 

 

Autus Securities Limited     Tel: +260 (0) 761 002 002

Mataka Nkhoma

 

About Zambeef Products plc

Zambeef Products plc is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the region, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stockfeed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana it has 236 retail outlets throughout Zambia and West Africa.

 

The Company is one of the largest suppliers of beef in Zambia. Five beef abattoirs and three feedlots are located throughout Zambia, with a capacity to slaughter 230,000 cattle a year. It is also one of the largest chicken and egg producers in Zambia, with a capacity of 8.8m broilers and 22.4 million day-old chicks a year. It is one of the largest piggeries, pig abattoirs and pork processing plants in Zambia, with a capacity to slaughter 75,000 pigs a year, while its dairy has a capacity of 120,000 litres per day.

 

The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 7,787 hectares of row crops under irrigation, which are planted twice a year, and a further 8,694 hectares of rainfed/dry-land crops available for planting each year.

 

 

 

 

 

 

CHAIRMAN'S REPORT

 

Dear Shareholder,

It is my great pleasure to present to you the Chairman's Report with respect to the financial half year period ended March 31, 2021.

Despite the 2020 macroeconomic headwinds and Covid-19 related uncertainties continuing into the current year, we saw a relatively more stable environment during the period under review in terms of the rate of depreciation of the kwacha and the easing of monetary policy. However, the period saw adverse market conditions in respect of securing supply, which saw a sharp rise in food inflation.

The Group generated an operating profit, including discontinued operations,   of ZMW175.6 million (USD8.4 million) compared to ZMW116 million (USD8.3 million) achieved in the previous half-year period.   The operating profit excluding discontinued operations was ZMW154.8 million (USD7.4 million) compared to ZMW125.5 million (USD9.0 million) achieved in the previous half-year period. The Group's performance had shown resilience in the face of market difficulties, illustrating the strengths of the vertically integrated business model which is key to creating long-term shareholder value.

The Board remains committed to achieving the Group's strategic priorities while navigating the seasonal market and economic challenges. The focus will be on optimising the assets of core businesses, to pay down debt and to invest for the future.

 

The Economic Environment

The Zambian economy has been under significant pressure stemming from the national debt burden, which was exacerbated by the impact of the coronavirus pandemic. Despite indications of recovery in the global economy from the effects of the coronavirus pandemic, the Zambian economic recovery remains gradual in the face of a high debt burden, high inflation and a volatile currency.

 

The Zambian kwacha has depreciated by 10% since the end of the 2020 full financial year period. The pace of depreciation of the local currency has slowed down owing to monetary policy interventions and the prospective benefits of a higher copper price on the international exchange markets.

   

Inflationary pressures, particularly food inflation, have resulted in a significant drop in our customers' disposable income and has continued to put pressure on the share of wallet going towards food spend. Inflation for the half-year period under review closed at 22.8% compared to 14% for the previous corresponding period. The resultant bumper harvest from the good summer rainfall season is expected to drive down food inflation in the second half of the financial year.

 

Divisional Performance review

 

Retail and Cold Chain Food Products

The Group continues to prioritise revenue optimisation, asset utilisation and cost control as pillars to drive profitability in the combined retail and cold chain food products divisions. Revenue grew by 29% and operating profit growth of 61% in kwacha terms was achieved.

 

The division experienced supply challenges during the period which resulted in inputs price increases. As a result, volumes declined across product categories. However, demand for our products was high as we remained competitively priced. 

Management positioned the Poultry division as a focus point for growth this year and continues to implement measures to improve production efficiencies and therefore profitability. Increased demand for broilers and eggs allowed for revenue improvement in the Poultry division despite a volume decline.

 

Stockfeed

Volumes were flat compared to prior year during the period owing to slow growth and some declines on major product lines. The shortage of day-old chicks on the market limited customers buying of broiler feed while an export ban reduced export sales and the ability to earn foreign currency. The high cost of imported materials negatively impacted costs of sales.

Cropping

Zambia had a good summer rainfall season during the half year period, and as a result, yields for the summer crop are expected to be in line with expectations. The country is expected to deliver a bumper harvest which will result in lower maize prices which will help stabilise food inflation.

 

Strategy review

The board undertook a review of the medium to long-term strategy to position the business to respond to the challenges and opportunities for the future. I am happy to update shareholders that the process is proceeding according to plan. Part of the strategy review process included a review of our operational business units and also governance structures. The board review which I announced at the annual general meeting included a review of the composition of the board in terms of both compliment and size and I am pleased to announce that this process has since been concluded.

 

Outlook

Although we expect some level of stability, the macro-economic climate is expected to remain challenging during the second half period. The kwacha is expected to continue depreciating at a steady rate with expected improvements towards the end of the calendar year. The copper price, which is a major foreign exchange earner for the country, is expected to continue holding as production increases. Monetary policy easing is expected to continue and inflation is expected to stabilise following the summer crop bumper harvest. The Covid-19 pandemic and how it will evolve has further potential to impact our operations. There are fears of a potential third wave as the country navigates through the winter season that occurs during the following reporting period.

 

The group remains committed to delivering value to shareholders and is positioned to navigate the turmoil while capitalising on opportunities.

 

Acknowledgement

 

On behalf of the Company and the Board of Directors, I would like to express my sincere gratitude to Margaret Mudenda, John Rabb, David Osborne and Professor Enala Mwase who resigned from the board in February and March 2021. Their dedication and contributions to the success of the business over the years will be greatly missed.

 

Since my last Report, we welcomed Monica Musonda, Pearson Gowero and Roman Frenkel to our Board of Directors. Their industry experience and backgrounds will be key in driving the business into the next phase of the Groups evolution as a regional food provider.

 

I would also want to thank my fellow board members for steering the Group through this challenging period. To our management and staff, I express my gratitude to them for another solid performance, dedicated efforts and resilience in the face of challenges. I am proud of our achievements to date, and I am excited by the potential opportunities  upon which we will build on our progress.

 

 

 

 

Michael Mundashi

Chairman

 

11 June 2021
 

CHIEF EXECUTIVE OFFICER'S REVIEW

 

Overview

The half year period continued to present challenges in the operating environment, resulting from the Covid-19 pandemic and 2020 economic uncertainties, despite greater stability compared to the second half of the 2020 financial year. Inflation continued to rise, although the exchange rate depreciated at a much slower rate. Money supply continued to improve in the economy. High inflation put pressure on disposable incomes as prices of goods and services increased resulting in depressed consumer spending. Due to the low supply of livestock from producers, after the devastating effects on their profitability by the previous drought and depreciation of the currency, the retail and cold chain food products supply was negatively affected. The resultant surge in food product prices to our customers forced them towards more affordable offerings of our products.

 

The load shedding situation improved towards the end of the calendar year 2020 following good regional rains as a result of the La Nina weather pattern, resulting in reduced generator fuel expenditure and improved production efficiencies.

 

Despite the challenges noted above, Zambeef has had a strong start to the financial year, delivering results ahead of pre-pandemic levels as revenue increased and costs were contained.

 

The Group delivered operating profit, including discontinued operations, of ZMW175.6 million (USD8.37 million), equating to a growth of 51.3% in kwacha terms and a flat performance of 0.3% growth in US dollar terms, compared with ZMW116.1 million (USD8.35million) in HY2020. The operating profit excluding discontinued operations was ZMW154.8 million (USD7.4 million) compared to ZMW125.5 million (USD9.0 million) achieved in the previous half-year period.

 

Our revenue, including discontinued operations, was ZMW2.2 billion (USD106.9 million) and we achieved a gross profit of ZMW782.1 million (USD37.2 million), respectively 23.7% and 24.3% above the prior year in kwacha terms, but both down by 18% and 17.6% in US dollar terms, respectively.

 

The Group's strong performance was driven by growth in the Poultry, Retail and Cropping divisions. Management continued optimising top line growth through revenue management while the continued cost control measures helped deliver strong Earnings Before Interest Taxes, Depreciation and Amortisation (EBITDA), and ensured resultant operating leverage.

 

Exchange losses and financing costs remained high in kwacha terms, eroding bottom-line performance. The depreciation of the kwacha led to increased financing costs and exchange losses on our dollar denominated debt, notwithstanding continued principal repayments during the period.

 

Our diversified and vertically integrated business with strong brands, supportive partners and an experienced management team helped deliver the encouraging results.

 

Strategic focus

Our strategic focus is to optimise our asset utilisation and maximise returns. We remain committed to our strategy of focussing on our core businesses, in which we strive to be the best in class. The continued deleveraging and divestiture of non-core assets will enable us to free up cash to invest into our core businesses and therefore deliver shareholder value.

Retail and Cold Chain Food Products (CCFP)

The period saw traditionally high volume sales lines come under pressure amidst a high inflationary environment and reduced customer spending. Despite high demand in our key product lines, supply constraints negatively impacted volume growth. Revenue growth was mainly driven by pricing increases on traditional product categories and aided by sales volume growth of traded goods and affordable categories. Shoprite in-store butcheries were a source of revenue growth as they proved relatively more resilient to inflationary pressures.

 

Sales volumes came under pressure on the back of supply constraints due to constrained livestock producer profitability levels. Significant producer price increases were necessary under the review period to livestock producers to increase output. The large price increases that were necessary to stimulate supply resulted in customers moving towards more affordable protein offerings. The Poultry division was a major contributor of revenue growth due to high demand for it as a relatively affordable protein source, in the form of chicken and eggs.

 

Despite the challenges, the Retail and CCFP business registered a healthy revenue growth of 29% above HY2020. Management employed a revenue optimisation strategy, responding quickly to the evolving volatile operating environment.

 

Retail and CCFP delivered an operating profit growth of 61% in kwacha terms. Operational efficiency improvements and overhead spend discipline ensured translation of the top line growth to the bottom-line. Reduced load shedding helped reduce generator set fuel costs, which further contributed to the increased profitability, particularly in the second quarter.

 

Stockfeed (Novatek)

Revenue for the division was 17% above prior year mainly due to price, as volumes remained flat on prior year. The demand for poultry feed reduced following a day-old chick supply shortage across the market. An export ban on animal feed from Zambia resulted in a further slowdown of production volumes. However, fish feed continues to register exponential growth following the sector specific lifting of the export ban and government's efforts to make Zambia a regional player in the aquaculture sector. The depreciation of the kwacha to the USD and ZAR negatively impacted foreign currency denominated costs.

 

Cropping

The revenue decline registered in the Cropping business is due to the timing of wheat sales and the impact of the sale of Sinazongwe farm. However, operating profit increased in kwacha terms despite the decline in dollar terms. Zambia experienced a good rainfall season and the yield on the summer crop is expected to be in line with expectations.

 

Outlook

Although we expect the macroeconomic situation to remain volatile, we expect more stability in the medium term than we experienced in the second half of 2020. Copper prices have rallied following the global recovery from the economic downturn caused by the coronavirus pandemic. 

 

The Covid-19 pandemic and how it evolves will continue to be an important factor in how we perform for the remainder of the year. We believe that a healthy, sustainable and profitable growth trend can only be achieved when we work together with our partners, communities and customers. We remain committed to implementing and enforcing Covid-19 protocols in our outlets.

 

Despite the macro-economic headwinds and uncertainty caused by the Covid-19 pandemic, Zambeef's underlying performance is expected to remain resilient.

 

Rehabilitating our balance sheet remains a priority. We have focused on deleveraging and thereby demonstrating to our shareholders that we have a clear path to take care of pending debt maturities. Our current strategy will help relieve exchange losses and financing cost pressures to the bottom line, which will increase free cash flow to enable us to invest for the future.

 

 

DIVISIONAL PERFORMANCE

 

Table 1 (ZMW) and Table 2 (USD) below provide a summary of the consolidated performance of the key business divisions reported at an operating profit level.

 

Table 1: Divisional financial summary in ZMW'000

 

ZMW

Revenue

Gross Profit

Overheads

Operating Profit

Division

2021
ZMW'000

2020
ZMW'000

2021
ZMW'000

2020
ZMW'000

2021
ZMW'000

2020
ZMW'000

2021
ZMW'000

2020
ZMW'000

Total

 

 

 

 

 

 

 

 

Retailing

1,392,447

1,138,678

138,614

120,170

(166,941)

(166,107)

(28,327)

(45,937)

CCFP

950,587

745,736

235,600

196,628

(133,156)

(104,790)

102,444

91,837

Less Interco

(841,687)

(721,059)

 

 

 

 

 

 

Combined

 

 

 

 

 

 

 

 

Retail &

1,501,347

1,163,355

374,214

316,798

(300,097)

(270,897)

74,117

45,900

CCFP

 

 

 

 

 

 

 

 

Stock Feed

748,062

641,656

144,290

122,378

(76,981)

(60,753)

67,309

61,625

Cropping

163,313

256,990

191,473

161,886

(102,673)

(85,151)

88,800

76,735

Others

145,964

109,476

29,447

25,067

(14,174)

(11,634)

15,273

13,434

Total

2,558,686

2,171,477

739,424

626,129

(493,925)

(428,435)

245,499

197,694

Less: Intra/

 

 

 

 

 

 

 

 

Inter Group

(408,213)

(373,844)

Sales

 

 

Central

 

 

 

 

 

 

 

 

Overhead

(90,729)

(72,195)

(90,729)

(72,195)

Group Total

2,150,473

1,797,633

739,424

626,129

(584,654)

(500,630)

154,770

125,499

 

Table 2: Divisional financial summary in USD'000

 

USD

Revenue

Gross Profit

Overheads

Operating Profit

Division

2021
USD'000

2020
USD'000

2021
USD'000

2020
USD'000

2021
USD'000

2020
USD'000

2021
USD'000

2020
USD'000

Total

 

 

 

 

 

 

 

 

Retailing

66,370

81,861

6,608

8,640

(7,957)

(11,942)

(1,350)

(3,302)

CCFP

45,309

53,612

11,228

14,135

(6,347)

(7,533)

4,883

6,602

Less Interco

(40,119)

(51,838)

 

 

 

 

 

 

Combined

 

 

 

 

 

 

 

 

Retail &

71,560

83,635

17,836

22,775

(14,304)

(19,475)

3,533

3,300

CCFP

 

 

 

 

 

 

 

 

Stock Feed

35,656

46,129

6,877

8,798

(3,669)

(4,368)

3,208

4,430

Cropping

7,784

18,475

9,127

11,638

(4,894)

(6,122)

4,233

5,516

Others

6,957

7,870

1,404

1,802

(675)

(836)

728

966

Total

121,957

156,109

35,244

45,013

(23,542)

(30,801)

11,702

14,212

Less: Intra/

 

 

 

 

 

 

 

 

 

Inter Group

(19,456)

(26,876)

Sales

 

 

Central

 

 

 

 

 

 

 

 

Overhead

(4,325)

(5,190)

(4,325)

(5,190)

Group Total

102,501

129,233

35,244

45,013

(27,867)

(35,991)

7,377

9,022

 

 

 

 

 

Taking the performance of each of our key business areas in turn:

 

Retail and CCFP

The combined Retail and CCFP divisions generated an EBIT margin of 5% which increased by 99 basis points from the previous financial year generating an absolute value increase of 61% to ZMW 74.1 million (HY2020: ZMW 45.9 million) in kwacha terms and 7.1% increase to USD 3.5 million (HY2020: USD 3.3 million) in dollar terms.

The strong performance was underpinned by revenue optimisation in Poultry products mainly due to favourable price and high demand given the relative affordability of Chicken and Egg as a source of protein. Cost pressure arising from supply constraints negatively impacted on the profitability in Pork, Beef and Milk.

 

West Africa Retail

Our Nigerian business was impacted by the sporadic protests related to the Shoprite announcement of the intention to pull out of the Nigeria market and the EndSARS protests. In addition, the business experienced supply challenges across its major product lines. Despite all these challenges, revenue increased by 43% to ZMW 155.7 million (HY2020: ZMW 109 million) mainly due to pricing and exchange translational effects with dollar revenue declining by 5%. However, operating profit declined by 89% in dollar terms due to rising costs.

 

Stockfeed (Novatek)

Sales volumes were flat on prior year mainly due to declines on key volume categories. Shortage of day-old chicks slowed the growth of broiler feed while an export ban impacted export sales.

 

Revenue grew by 17% in kwacha terms (23% decline in USD terms), while the operating profit only grew by 9.2% to ZMW 67 million (HY2020: ZMW 62 million) or declined by 28% to USD 3.2 million (HY2020: USD 4.4 million) in dollar terms. The gross margin increased to 19.3% from 19.1% in the prior year owing to favourable pricing despite rising costs of inputs.

 

Overheads increased by 27% to ZMW 77 million (HY2020: ZMW 61 million) owing to high repairs and maintenance costs and labour costs.

 

Cropping

The Cropping business is key to Zambeef, providing raw material inputs for value added processing within the Group and serving as a currency hedge by being able to generate USD cash flow.

 

Revenue decreased 37% to ZMW 163 million (HY2020: ZMW 257 million) or 58% to USD 7.8 million (HY2020: USD 18.5 million) in dollar terms, mainly due to timing of wheat sales during this year's cycle and the impact of the previous years sale of Sinazongwe farm and currently the assets held for sale at Chiawa farm. Gross profit increased 18% compared to the prior half-year, with only a 21% increase in the overheads even in the context of the depreciation of the kwacha.

 

Zambia experienced a good rainfall season and the summer harvest is expected to be in line with expectations. However, the price of maize is expected to be lower than the prior year following the expected bumper harvest predicted for Zambia.

 

Other businesses

Total revenue from the Group's other business units increased by 33% to ZMW 146 million (HY2020: ZMW 109 million) mainly due to growth in both the milling and leather to shoe businesses. This translated to gross profit growth of 17% in kwacha terms due to cost pressures in Milling arising from the increase in price of wheat in kwacha terms following the depreciation of the currency.

 

The leather to shoe business turnaround strategy is beginning to pay off as the division saw an increase in demand for its products, particularly school shoes, following the opening of schools after Covid-19 related closures. Management focus has been to optimise production efficiencies, control overhead costs, innovation and look for new market opportunities for its products.

 

Walter Roodt

Chief Executive Officer

 

11 June 2021

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2021

 

 

 

Unaudited

Audited

 

 

31 Mar 2021

31 Mar 2020

30 Sept 2020

Group

Note

ZMW'000s

ZMW'000s

ZMW'000s

 

 

 

 

 

Revenue

5(i)

2,150,473

1,797,633

3,875,104

Net profit/(loss) arising from price changes in fair value of biological assets

9

17,242

10,408

(14,381)

Cost of sales

 

(1,428,291)

(1,181,912)

(2,645,101)

Gross profit

5(i)

739,424

626,129

1,215,622

Administrative expenses

 

(587,575)

(501,168)

(1,011,968)

Other income

 

2,921

538

6,877

Operating profit

 

154,770

125,499

210,531

Share of loss equity accounted investment

 

(915)

(1,898)

(3,177)

Exchange losses on translating foreign currency transactions and balances

 

(42,558)

(62,870)

(137,705)

Finance costs

 

(56,360)

(48,241)

(92,322)

Profit/(loss) before taxation

5(i)

54,937

12,490

(22,673)

Taxation charge

6(a)

(21,846)

(927)

(112,957)

Group profit/(loss) for the period from continued operations

 

33,091

11,563

(135,630)

(Loss)/profit from discontinued operations

15

20,843

(9,423)

33,435

Total (loss)/profit for the period

 

53,934

2,140

(102,195)

 

 

 

 

 

Group profit/(loss) attributable to:

 

 

 

 

Equity holders of the parent

 

54,056

1,650

(103,419)

Non-controlling interest

 

(122)

490

  1,224

 

 

53,934

2,140

(102,195)

Other comprehensive income

 

 

 

 

Exchange gains on translating presentational currency

 

117,226

434,406

625,042

Remeasurement of net defined benefit liability

 

-

-

6,229

Remeasurement of leases

 

-

(12)

315

Total comprehensive income for the period

 

171,160

436,534

529,391

 

 

 

 

 

Total comprehensive income/(loss) for the period attributable to:

 

 

 

 

Equity holders of the parent

 

173,523

433,889

525,030

Non-controlling interest

 

(2,363)

2,645

4,361

 

 

171,160

436,534

529,391

 

 

 

 

 

Earnings per share

 

Ngwee

Ngwee

Ngwee

Basic and diluted earnings per share from continued operations

7

8.29

2.76

(45.53)

Basic and diluted earnings per share from discontinued operations

7

5.20

(2.35)

11.12

Total

7

13.49

0.41

(34.41)

 

 

The accompanying notes form part of the financial statements.

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2021

 

 

 

Unaudited

Audited

 

 

31 Mar 2021

31 Mar 2020

30 Sept 2020

Group

Note

USD'000s

USD'000s

USD'000s

Revenue

5(ii)

102,501

129,233

239,648

Net proft/(loss) arising from price changes in fair value of biological assets

9

822

748

(889)

Cost of sales

 

(68,079)

(84,968)

(163,581)

Gross profit

5(ii)

35,244

45,013

75,178

Administrative expenses

 

(28,006)

(36,029)

(62,583)

Other income

 

139

38

425

Operating profit

 

7,377

9,022

13,020

Share of loss equity accounted investment

 

(44)

(136)

(197)

Exchange losses on translating foreign currency transactions and balances

 

(2,029)

(4,520)

(8,516)

Finance costs

 

(2,686)

(3,468)

(5,709)

Profit/(loss) before taxation

5(ii)

2,618

898

(1,402)

Taxation charge

6(f)

(1,041)

(67)

(6,986)

Group profit/(loss) for the period from continued operations

 

1,577

831

(8,388)

Profit/(loss) from discontinued operations

15

993

(677)

2,068

Total profit/(loss) for the period

 

2,570

154

(6,320)

 

 

 

 

 

Group profit/(loss) attributable to:

 

 

 

 

Equity holders of the parent

 

2,577

119

(6,396)

Non-controlling interest

 

(7)

35

76

 

 

2,570

154

(6,320)

Other comprehensive income

 

 

 

 

Exchange (losses)/gains on translating presentational currency

 

(11,265)

(42,051)

(52,402)

Remeasurement of net defined benefit liability

 

-

-

385

Remeasurement of leases

 

-

(1)

20

Total comprehensive loss for the period

 

(8,695)

(41,898)

(58,317)

 

 

 

 

 

Total comprehensive income/(loss) for the period attributable to:

 

 

 

 

Equity holders of the parent

 

(8,581)

(42,144)

(58,661)

Non-controlling interest

 

(114)

246

344

 

 

(8,695)

(41,898)

(58,317)

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

Cents

Cents

Cents

Basic and diluted earnings per share from continued operations

7

0.40

0.20

(2.82)

Basic and diluted earnings per share from discontinued operations

7

0.25

(0.17)

0.69

Total

7

0.65

0.03

(2.13)

 

The accompanying notes form part of the financial statements.

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF MOVEMENTS IN EQUITY

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2021

 

 

Share capital

 

Share premium

 

Preference share capital

 

Revaluation reserve

 

Foreign exchange

translation reserve

 

Retained earnings

 

Total attributable to owners of the parent

 

Non-controlling interest

 

Total equity

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

 

ZMW'000s

At 1 October 2019

3,006

 

1,125,012

 

1,000

 

1,199,058

 

381,929

 

535,704

 

3,245,709

 

(4,881)

 

3,240,828

Loss for the period

-

 

-

 

-

 

-

 

-

 

1,650

 

1,650

 

490

 

2,140

Transfer of surplus depreciation

-

 

-

 

-

 

(14,833)

 

-

 

14,833

 

-

 

-

 

-

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of Leases

-

 

-

 

-

 

-

 

-

 

(12)

 

  (12)

 

-

 

(12)

Exchange gains on translating presentational currency

  -

 

  -

 

  -

 

  -

 

  432,251

 

  -

 

  432,251

 

  2,155

 

  434,406

Total comprehensive income for the period

  -

 

  -

 

  -

 

  (14,833)

 

  432,251

 

  16,471

 

  433,889

 

  2,645

 

  436,534

At 31 March 2020

 3,006

 

1,125,012

 

  1,000

 

1,184,225

 

 814,180

 

552,175

 

3,679,598

 

  (2,236)

 

3,677,362

Profit for the period

-

 

-

 

-

 

-

 

-

 

(105,069)

 

(105,069)

 

734

 

(104,335)

Transfer of surplus depreciation

-

 

-

 

-

 

(16,512)

 

-

 

16,512

 

-

 

-

 

-

Other comprehensive income

Remeasurement of net defined benefit liability

-

 

-

 

-

 

-

 

-

 

6,229

 

6,229

 

-

 

6,229

Adjustment on transition to IFRS16

-

 

-

 

-

 

-

 

-

 

327

 

327

 

-

 

327

Exchange gains on translating presentational currency

  -

 

  -

 

  -

 

  -

 

189,654

 

  -

 

  189,654

 

  982

 

  190,636

Total comprehensive income for the period

  -

 

  -

 

  -

 

(16,512)

 

189,654

 

(82,001

 

  91,141

 

  1,716

 

  92,857

At 30 September 2020

  3,006

 

1,125,012

 

  1,000

 

1,167,713

 

1,003,834

 

470,174

 

3,770,739

 

  (520)

 

3,770,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

-

 

-

 

-

 

-

 

-

 

54,056

 

54,056

 

(122)

 

53,934

Transfer of surplus depreciation

-

 

-

 

-

 

(23,141)

 

-

 

23,141

 

-

 

-

 

-

Other comprehensive income

Remeasurement of leases

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

Exchange gains on translating presentational currency

  -

 

  -

 

  -

 

  -

 

  119,467

 

  -

 

  119,467

 

  (2,241)

 

  117,226

Total comprehensive income for the period

  -

 

  -

 

  -

 

  (23,141)

 

  119,467

 

 77,197

 

  173,523

 

  (2,363)

 

  171,160

At 31 March 2021

  3,006

 

1,125,012

 

  1,000

 

  1,144,572

 

 1,123,301

 

547,371

 

3,944,262

 

 (2,883)

 

3,941,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF MOVEMENTS IN EQUITY

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2021

 

 

Share capital

Share premium

Preference share capital

Revaluation reserve

Foreign exchange

translation reserve

Retained earnings

Total attributable to owners of the parent

Non-controlling Interest

Total equity

 

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

USD'000s

At 1 October 2019

  449

  185,095

  100

173,209

(197,748)

84,782

245,887

(370)

245,517

Transactions with owners

 

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

-

119

119

35

154

Transfer of surplus depreciation

-

-

-

(1,066)

-

1,066

-

-

-

Other comprehensive income:

 

 

 

 

 

 

 

 

 

Exchange losses on translating presentational currency

  -

  -

  -

  -

  (42,262)

  -

  (42,262)

  211

  (42,051)

Remeasurement of leases

  -

  -

  -

  -

  -

  (1)

  (1)

  -

  (1)

Total comprehensive income for the period

  -

  -

  -

  (1,066)

  (42,262)

  1,184

  (42,144)

  246

  (41,898)

At 31 March 2020

  449

185,095

  100

  172,143

  (240,010)

  85,966

  203,743

  (124)

  203,619

Loss for the period

-

-

-

-

-

(6,515)

(6,515)

41

(6,474)

Transfer of surplus depreciation

-

-

-

(872)

-

872

-

-

-

Other comprehensive income

Remeasurement of leases

-

-

-

-

-

21

21

-

21

Remeasurement of defined benefit liability

-

-

-

-

-

385

385

 

385

Exchange gains on translating presentational currency

  -

  -

  -

  -

  (10,408)

  -

  (10,408)

  57

  (10,351)

Total comprehensive income

  -

  -

  -

  (872)

  (10,408)

  (5,237)

  (16,517)

  98

  (16,419)

At 3o September 2020

  449

  185,095

  100

  171,271

  (250,418)

  80,729

  187,226

  (26)

  187,200

 

 

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

-

2,577

2,577

(7)

2,570

Transfer of surplus depreciation

-

-

-

(1,103)

-

1,103

-

-

-

Other comprehensive income

Remeasurement of leases

-

-

-

-

-

-

-

-

-

Exchange gains on translating presentational currency

  -

  -

  -

  -

  (11,158)

  -

  (11,158)

  (107)

(11,265)

Total comprehensive income

  -

  -

  -

  (1,103)

  (11,158)

  3,680

  (8,581)

  (114)

(8,695)

At 31 March 2021

  449

185,095

  100

  170,168

(261,576)

84,409

178,645

(140)

178,505

 

 

 

 

 

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 31 MARCH 2021

 

 

Unaudited

Audited

 

Note

31 Mar 2021

 

31 Mar 2020

30 Sept 2020

 

 

ZMW'000s

 

ZMW'000s

ZMW'000s

ASSETS

 

 

 

 

 

Non - current assets

 

 

 

 

 

Goodwill

 

166,801

 

166,801

166,801

Property, plant and equipment

8

3,419,935

 

3,292,653

3,264,505

Investment in associate

 

42,911

 

10,478

43,826

Deferred tax assets

6(e)

  8,680

 

  80,073

9,552

 

 

3,638,327

 

3,550,005

3,484,684

Current assets

 

 

 

 

 

Biological assets

9

689,646

 

520,437

176,305

Inventories

 

906,914

 

682,619

1,103,640

Trade and other receivables

 

149,606

 

87,924

132,668

Assets held for disposal

15

175,654

 

131,857

175,654

Amounts due from related companies

 

4,949

 

38,281

9,337

Income tax recoverable

6(c)

  19,800

 

  18,329

  1,784

Cash and cash equivalents

10

  83,678

 

  62,113

  111,136

 

 

2,030,247

 

  1,541,560

1,710,524

Total assets

 

5,668,574

 

5,091,565

 

5,195,208

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

Capital and reserves

 

 

 

 

 

Share capital

 

3,006

 

3,006

3,006

Preference share capital

 

1,000

 

1,000

1,000

Share premium

 

1,125,012

 

1,125,012

1,125,012

Reserves

 

2,815,244

 

2,550,580

2,641,721

 

 

3,944,262

 

3,679,598

3,770,739

Non-controlling interest

 

  (2,883)

 

  (2,236)

(520)

 

 

3,941,379

 

 3,677,362

3,770,219

Non - current liabilities

 

 

 

 

 

Interest bearing liabilities

11

124,233

 

234,846

190,218

Leases

12

10,242

 

19,741

19,750

Deferred liability

 

10,578

 

15,737

11,389

Deferred taxation

6(e)

  85,041

 

  32,154

69,950

 

 

 230,094

 

  302,478

291,307

Current liabilities

 

 

 

 

 

Interest bearing liabilities

11

359,159

 

391,108

326,899

Leases

12

16,446

 

24,701

23,259

Trade and other payables

 

400,006

 

231,592

321,648

Provisions

 

120,857

 

54,310

113,347

Amounts due to related companies

 

-

 

1,265

443

Taxation payable

6(c)

23,940

 

15,253

41

Bank overdrafts

10

  576,693

 

  393,496

348,045

 

 

1,497,101

 

  1,111,725

1,133,682

Total equity and liabilities

 

5,668,574

 

5,091,565

 

5,195,208

 

 

 

ZAMBEEF PRODUCTS PLCAND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 31 MARCH 2021

 

 

Unaudited

Audited

 

 

31 Mar 2021

 

31 Mar 2020

30 Sept 2020

 

Note

USD '000s

 

USD '000s

USD '000s

ASSETS

 

 

 

 

 

Non - current assets

 

 

 

 

 

Goodwill

 

7,554

 

9,236

8,282

Property, plant and equipment

8

154,888

 

182,317

162,091

Investment in associate

 

1,943

 

580

2,176

Deferred tax asset

6(j)

  394

 

  4,434

  474

 

 

164,779

 

  196,567

173,023

Current assets 

 

 

 

 

 

Biological assets

9

31,234

 

28,817

8,754

Inventories

 

41,074

 

37,797

54,798

Trade and other receivables

 

6,776

 

4,868

6,587

Assets held for disposal

15

7,955

 

7,301

8,722

Amounts due from related companies

 

224

 

2,120

464

Income tax recoverable

6(h)

897

 

  1,015

  89

Cash and cash equivalents

10

  3,790

 

  3,439

  5,518

 

 

 91,950

 

  85,357

 84,932

Total assets

 

256,729

 

 281,924

 

257,955

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

Capital and reserves

 

 

 

 

 

Share capital

 

449

 

449

449

Preference share capital

 

100

 

100

100

Share premium

 

185,095

 

185,095

185,095

Reserves

 

  (6,999)

 

  18,099

  1,582

 

 

178,645

 

203,743

187,226

Non-controlling interest

 

  (140)

 

  (124)

(26)

 

 

178,505

 

  203,619

187,200

Non - current liabilities

 

 

 

 

 

Interest bearing liabilities

11

5,626

 

13,004

9,445

Leases

12

464

 

1,093

981

Deferred liability

 

479

 

872

565

Deferred tax liability

6(j)

  3,852

 

  1,780

3,473

 

 

10,421

 

  16,749

14,464

Current liabilities

 

 

 

 

 

Interest bearing liabilities

11

16,266

 

21,656

16,231

Leases

12

745

 

1,368

1,155

Trade and other payables

 

18,116

 

12,823

15,971

Provisions

 

5,474

 

3,007

5,629

Amounts due to related companies

 

-

 

69

22

Taxation payable

6(h)

1,084

 

845

2

Bank overdrafts

10

  26,118

 

  21,788

17,281

 

 

  67,803

 

  61,556

56,291

Total equity and liabilities

 

256,729

 

  281,924

 

257,955

 

 

 

 

 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2021

 

 

Unaudited

Audited

 

 

 

 

 

 

 

 

 

 

 

 

6 months to

6 months to

Year to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 Mar 2021

31 Mar 2020

30 Sept 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ZMW'000s

ZMW'000s

ZMW'000s

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash inflow/(outflow) from/(on) operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) before taxation

54,937

12,490

(22,673)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

56,360

48,241

92,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Profit)/loss on disposal of property, plant and equipment

(1,345)

-

4,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment on transition to IFRS 16

-

(1,187)

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation on right-of-use assets

-

304

8,362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

84,275

66,285

141,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of loss of equity accounted investment

915

1,898

3,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) on discontinued operations

20,843

(9,423)

1,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value price adjustment

(17,242)

(10,408)

14,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealised foreign exchange (gains)/losses

  (5,345)

  31,935

 186,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest, tax, depreciation and amortisation, fair value adjustments and net unrealised foreign exchange losses

193,398

140,135

429,574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase)/decrease in biological assets

(496,099)

(339,612)

(20,269)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in inventory

196,726

258,540

(162,481)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in trade and other receivables

(16,938)

10,101

(34,643)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in amounts due from related companies

4,388

3,273

(2,410)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in trade and other payables and provisions

85,868

(26,597)

122,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in amount due to related companies

(443)

1,014

192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Decrease)/increase in deferred liability

(811)

(625)

1,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax paid

  -

  (3,145)

  (5,525)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash inflow/(outflow from/(on) operating activities

(33,911)

  43,084

328,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

(59,829)

(57,952)

(92,664)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of assets

  2,247

  342

6,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Right of use assets

-

  -

(15,425)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of assets/investments

  -

  -

167,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (outflow)/ inflow (on)/ from investing activities

(57,582)

  (57,610)

  65,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (outflow)/inflow before financing

(91,493)

  (14,526)

393,817

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long term loans repaid

(81,925)

(56,612)

(162,217)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of short term funding

(228,246)

-

(623,231)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receipt of short term funding

232,646

15,602

487,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases obtained

-

3,658

14,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases repaid

(16,321)

-

(35,478)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs including discontinued operations

(56,360)

  (48,241)

(92,322)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash outflow from financing

(150,206)

  (85,593)

(411,599)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in cash and cash equivalents

(241,699)

(100,119)

(17,782)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

(236,909)

(274,425)

(274,425)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effects of exchange rate changes on the balance of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

cash held in foreign currencies

  (14,407)

  43,161

  55,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

(493,015)

(331,383)

(236,909)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Represented by:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash in hand and at bank

83,678

62,113

111,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank overdrafts

(576,693)

 (393,496)

(348,045)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(493,015)

 (331,383)

(236,909)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 
 

 

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTH PERIOD ENDED 31 MARCH 2021

 

Unaudited

 

Audited

 

6 months to

 

6 months to

 

Year to

 

31 Mar 2021

 

31 Mar 2020

 

30 Sept 2020

 

USD'000s

 

USD'000s

 

USD'000s

Cash inflow/(outflow) from/(on) operating activities

 

 

 

 

 

Profit/(loss) before taxation

2,618

 

898

 

(1,402)

Finance costs

2,686

 

3,468

 

5,709

Profit/(loss) on disposal of property, plant and equipment

(64)

 

-

 

297

Adjustment on transition to IFRS 16

-

 

(90)

 

-

Depreciation charge on right-of-use assets

-

 

22

 

517

Depreciation

4,017

 

4,765

 

8,745

Share of loss of equity accounted investment

44

 

136

 

196

Profit/(loss) on discontinued operations

993

 

(677)

 

95

Fair value price adjustment

(822)

 

(748)

 

889

Net unrealised foreign exchange losses/(gains)

  (255)

 

  2,296

 

11,495

Earnings before interest, tax, depreciation and amortisation, fair value adjustments and net unrealised foreign exchange losses

9,217

 

 

10,070

 

 

26,541

 

Increase/(decrease) in biological assets

(23,646)

 

(24,415)

 

(1,253)

Decrease in inventory

9,377

 

18,587

 

(10,048)

Decrease in trade and other receivables

(807)

 

726

 

(2,142)

Decrease in amounts due from related companies

209

 

235

 

(149)

Increase/(decrease) in trade and other payables

4,093

 

(1,912)

 

7,575

(Decrease)/increase in amount due to related companies

(21)

 

73

 

12

(Decrease) in deferred liability

(39)

 

(45)

 

102

Income tax paid

  -

 

  (226)

 

  (342)

Net cash inflow/(outflow) from/(on) operating activities

(1,617)

 

  3,093

 

20,296

Investing activities

 

 

 

 

 

Purchase of property, plant and equipment

(2,852)

 

(4,166)

 

(5,731)

Proceeds from sale of assets

107

 

  25

 

399

Right of use asset

-

 

-

 

(954)

Proceeds from sale of assets/investments

  -

 

  -

 

10,344

Net cash outflow on investing activities

 (2,745)

 

  (4,141)

 

  4,058

Net cash outflow before financing

(4,362)

 

  (1,048)

 

24,354

Financing 

 

 

 

 

 

Long term loans repaid

(3,820)

 

(4,070)

 

(10,032)

Repayment of short term funding

(10,773)

 

-

 

(38,542)

Receipt of short term funding

10,952

 

1,123

 

30,137

Leases  obtained

-

 

263

 

886

Leas repaid

(778)

 

-

 

(2,194)

Finance costs including discontinued operations

 (2,686)

 

  (3,468)

 

(5,709)

Net cash outflow from financing

 (7,105)

 

  (6,152)

 

(25,454)

Decrease in cash and cash equivalents

(11,467)

 

(7,200)

 

(1,100)

Cash and cash equivalents at beginning of period

(11,763)

 

(20,790)

 

(20,790)

Effects of exchange rate changes on the balance of

 

 

 

 

 

  cash held in foreign currencies

  902

 

  9,641

 

10,127

Cash and cash equivalents at end of period

(22,328)

 

 (18,349)

 

11,763

Represented by:

 

 

 

 

 

Cash in hand and at bank

3,790

 

3,439

 

5,518

Bank overdrafts

(26,118)

 

 (21,788)

 

(17,281)

 

(22,328)

 

 (18,349)

 

(11,763)

 

 

 

 

A copy of the Interim Report will shortly be available to view on the Company's website at www.zambeefplc.com/aim-rule-26/

 

 

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