The group revealed that its profit before tax rose from US$572,000 to $2.9m in comparison with 2017’s results, a 406.8% difference. Profits from continuing operations also jumped up by 434.6%.
Total net revenue also increased by 9.6% and EBITDA by 26.5% compared to 2017, which was attributed to volume and margin growth in the retail, cold chain and stockfeed divisions.
The business said it had to make operational changes across its retail network to optimise revenue and efficiencies across the division.
During the year, 10 Zambeef Macro retail stores were opened across locations in Zambia and the company has revealed plans to open a further 10 outlets over the next three years. However, Zambeef closed 14 small retail stores across the continent.
Despite its sales success, Zambeef’s chairman Jacob Mwanza highlighted Zambia’s currency – the kwacha – had suffered as a result of emerging markets.
“Zambia’s economy remained relatively stable for the majority of the financial year to 30 September 2018. However, September saw the kwacha suffer significant depreciation as economic conditions weakened amid wide concerns for emerging markets,” said Mwanza.
“Notwithstanding this downturn, the group’s results were encouraging, with revenue in Zambian kwacha increasing by 14.2% year-on-year. The group expects to continue to grow US dollar earnings in 2019, and generate positive free cash in the financial year.”
The results are a major turnaround from last year’s performance after a fungal disease devastated its cropping division.
The company is involved in the production and distribution of beef, chicken and pork across food outlets in Zambia, Nigeria and Ghana.