Operating profits for the year to end-September grew 46 per cent to $21.7m (£16.9m) for Zambeef Products (ZAM), but a $9.7m tax provision and exchange rate losses of $4m meant that earnings per share were down sharply.
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Even so, the group's agricultural operations in Zambia, Nigeria and Ghana delivered solid growth, and, while overheads were up by 37 per cent, gross profit margins still improved from 34 per cent to 37 per cent. To meet demand, Zambeef has been investing heavily to increase output, leading to a net cash outflow, although the investment programme is now largely complete and management expects the group to generate free cash this year, with the prospect of a meaningful dividend in 2013-14.
