LONDON (ShareCast) - (ShareCast News) - Annual profits at Zambia-based agribusiness Zambeef Products took a nosedive as unfavourable exchange rates, increased costs and lower commodity prices wiped out gains made in retail sales.
Zambeef's retail sales revenue grew 27.3% to ZMW 1.4bn in the twelve month period ended 30 September behind a record performance from the firm's stock feed division.

Stock feed EBITDA jumped 19.2% to ZMW 116m, but the "challenging" macroeconomic environment during the first half pressured margins for the group's cold chain food products division.

In the end, Zambeef turned in a group net profit of ZMW 3.27m, almost half the ZMW 157.38m it recorded at the same time a year earlier.

Group EBITDA was down to ZMW 173.6m from ZMW 316.6m.

Zambeef chairman Dr Jacob Mwanza, said, "Whilst the financial performance in FY2017 has been disappointing for reasons largely outside of management's control, the strength of Zambeef's balance sheet provides a solid platform from which to continue to deliver sustainable long-term growth and added shareholder value."

Net debt rose to ZMW 620m from ZMW 483m at the end of Zambeef's previous trading year, dragging the debt to EBITDA ratio down to 1.6 from 3.5.

As of 1420 GMT, shares had lost 3.15% to sit on 11.98p.

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