Zambian agriculture play Zambeef (ZAM) has reiterated its expectation that cash generation will pick up sufficiently to allow it to commence dividend payments from next year. A period of investment both within the business and in acquisitions has built up a solid base for growth, and the results should begin to come through in the second half of this year.
In the first half to March, revenues rose by 20 per cent in US dollar terms and gross profits were 24 per cent higher at $55.6m, but pre-tax profits dipped by 7 per cent due to the cost of investment and unfavourable exchange rate movements. The Mpongwe Farms acquisition helped produce a 76 per cent uplift in cropping, while edible oil's output was up by 70 per cent, helped by the recommencement of oil seed crushing after an expansion project. Stock feed and the west African retail business were also strong contributors.
