He was speaking at the announcement of the company’s financial results, saying that it had achieved a K157,4 million (R270 000) profit after tax for the financial year ended 30 September 2016.
Zambeef made a K50 million (R86 000) loss for the corresponding period in 2015. This turnaround has been attributed to a combination of increasing production and sales margins, maintaining other margins, and effective cost management.
READ Diversifying for profitability in Zambia
Debt reduction gearing was a result of US$65 million (R900 million) in funds raised from the development finance institution, assisted by the CDC Group in the UK, according to the company’s latest annual financial statement. Zambeef is involved in the production, processing, distribution and retailing of beef, chicken, pork, milk,
Zambeef is involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, value-added dairy products, eggs, stock-feed and flour. It also owns and operates 171 retail outlets and wholesale depots across Zambia and West Africa.
In the statement, Zambeef said that the capital raised from the CDC Group had allowed it to take full control of erstwhile South African partner, RCL Foods’ Zamhatch, operations.
“[It] has allowed Zambeef to focus its investment on growing its business, accelerate the rollout of new macro stores and expand the cold chain food production capacity to meet growing demand, both in Zambia and the Southern African Development Community and Common Market for Eastern and Southern Africa regions,” the statement said.
As part of its development drive, Zambeef said that some of its subsidiaries had recently achieved, or were in the process of achieving, certification in “world class standards” and that the company has invested heavily in ensuring that its operations were meeting the highest international safety standards.
Its Novatek Animal Feeds subsidiary recently achieved ISO 9001:2008 certification in quality management and ISO 22000:2005 certification in food safety management.
The Zamleather subsidiary achieved ISO 20345:2011 certification for personal protective equipment for a range of safety boots sold to the mining industry. Zambeef itself was hoping to achieve Food Safety System Certification 22000 for its beef, pork and dairy products by December 2017, the statement said.
Zambeef itself was hoping to achieve Food Safety System Certification 22000 for its beef, pork and dairy products by December 2017, the statement said.
“To compete on a level playing field in the region and beyond, Zambian farmers must take the significance of high standards in their value-chains very seriously,” said Zambeef’s marketing and corporate affairs manager, Felix Lupindula.
“I am confident that the group is well positioned to take advantage of the opportunities that lie ahead,” he said.
