By Matteo Castia
Zambeef Products PLC on Friday announced an increase in its pre-tax profit for the first half of fiscal 2021 on higher revenues, but warned of unfavorable full-year currency effects.
The Zambia-based cold chain food producer, which is listed in London, made a pre-tax profit of 54.9 million Zambian kwacha ($ 2.4 million) for the six-month period ended March 31, against 12.5 million ZMW the previous year. period.
“Profitability was primarily driven by crops, increased volumes and margins in the feed and food retail and cold chain division,” the company said.
The turnover reached 2.15 billion ZMW against 1.80 billion ZMW the previous year.
Still, the group’s dollar performance has been affected by the continued depreciation of the local currency in Zambia, the company said.
“The depreciation of the kwacha resulted in increased funding costs and foreign exchange losses on our dollar denominated debt, despite continued principal repayments during the period,” Zambeef said.
Dollar revenue during the period fell 21% year-over-year to $ 102.5 million.
“The kwacha is expected to continue to depreciate at a steady rate with improvements expected towards the end of the calendar year,” Zambeef warned.
Shares at 10:55 a.m. GMT were up 0.25 pence, or 3.2%, to 8.00 pence.
Write to Matteo Castia at [email protected]