ZAMBIA – Zambeef Products PLC experienced a 2.2% increase in share price on Wednesday, with shares trading as high as GBX 6 (US$0.08) before settling at GBX 5.75 (US$0.07).
This uptick occurred with a notable trading volume of approximately 581,785 shares, a significant rise of 422% from the average daily volume of 111,526 shares.
The stock had previously closed at GBX 5.63 (US$0.07).
The company’s 50-day moving average stands at GBX 5.73(US$0.08), while the 200-day moving average is GBX 5.70 (US$0.07).
Zambeef currently holds a market capitalization of £17.66 million(US$22M), a price-to-earnings ratio of 587.50, and a beta of -0.29.
Financially, the company exhibits a current ratio of 1.34, a quick ratio of 0.39, and a debt-to-equity ratio of 35.97.
The rise in share price follows the release of Zambeef’s quarterly interim results months earlier.
The report projected a 15% shortfall in revenue and gross profit for the fiscal year ending September 30, 2024, relative to market expectations.
This anticipated decline was attributed to operational challenges and the negative effects of a weakening local currency.
Additionally, Zambeef forecasted its profit before tax to fall approximately 30% below market projections, influenced by higher-than-expected financing costs and an impairment of an investment in an associate.
Consequently, the company’s reported profit after tax was expected to be about 55% lower than market predictions, further impacted by a loss from assets held for sale.
The first half of 2024 has posed significant challenges for Zambeef, grappling with a difficult market and operating environment.
Factors such as restricted consumer spending, stringent monetary policies by Zambia’s Central Bank to curb inflation and exchange risk, and limited government expenditure have all contributed to the company’s struggles.
Operating across Zambia, Nigeria, and Ghana, Zambeef Products PLC, along with its subsidiaries, is involved in various agri-business sectors.
The company operates through Retailing and Cold Chain Food Products and Cropping and Milling segments, engaging in the production, processing, distribution, and retailing of a diverse range of products, including beef, chicken, pork, milk, dairy products, eggs, edible oils, stock feed, and flour.
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