Zambeef Products Joint-CEOs Carl Irwin (left) and Francis Grogan (right) with Deputy Agriculture Minister Hon. Lackson Kasabu (center)Key Points
- 2014 financial year has been a year two very different halves.
- In H1 2014, the Group recorded a loss before tax of USD6.3 million; however, in H2 2014, the Group recorded a profit before tax of USD2.7 million.
- H1 2014 performance adversely impacted by macro-economic challenges and external influences, however, H2 2014 saw a strong turnaround of the business, led by the Group’s core cold chain food product divisions.
- Gross margin decreased from 34.7 per cent. for September 2013 to 33.8 per cent. for September 2014; however, robust cost control measures resulted in the cost/income ratio improving from 26.6 per cent. (2013) to 26.3 per cent. (2014).
- Net cash inflow from operating activities was a creditable USD13.8 million.
- The two JVs with Rainbow (Zam Chick and Zamhatch) are progressing smoothly and we expect to see the full benefits over the next 12 months, when Zamhatch becomes operational.
- Acceleration of our strategic priorities, which include: the retailing of cold chain food products; forging strategic alliances and partnerships with acknowledged industry players; unlocking value and capital gains from within the Group (and to reduce debt/gearing); and developing the business into a regional food supplier.
FY 2014 financial results