Zambeef delivers record profits of $12.4m in 2016

Zambeef, the African meat and dairy plc founded by Irishman Francis Grogan, turned in a strong financial performance in 2016 to report record pre-tax profits of $12.4m, a significant improvement compared with the more than $5m loss reported in 2015.

The main drivers behind the group’s record profits was the 11% volume growth in its chilled beef division and a 15% increase in animal feed volumes.

Zambeef saw operating profits in 2016 decline 25% to $17.3m as operating margins narrowed 200 basis points to 8%. Turnover declined marginally (0.4%) to $219.4m.

Francis Grogan, who is joint chief executive at Zambeef, said the group is operating in areas where the population is close to 450m. “Zambeef is operating in areas with some of the fastest-growing urbanising populations in the world. The demand for food is growing rapidly and the challenge will be to continue to invest in its core operations to meet this growing demand,” added Grogan.

Earlier this year, Zambeef secured a $65m (€58m) investment from Britain’s Commonwealth Development Corporation (CDC) in a deal that will allow the company complete the takeover of a subsidiary poultry business, refinance $38m in debt and free up cash.

Zambeef is one of the largest beef processors in Zambia, with the capacity to slaughter 100,000 head per annum. It is involved in the production, processing, distribution and retailing of beef, chicken, pork, dairy products, fish and feed throughout Zambia, Nigeria and Ghana.