Zambeef - Sowing the seeds of growth

Zambeef delivered excellent FY22 results, with revenue, EBITDA (Adj.) and reported PBT in line with our US forecasts. A strong performance from Cropping & Milling offset a decline in Retail and Cold Chain Food Products. The diversified portfolio and strength of Zambeef’s brands gives the business a welcome resilience. The new CEO, Ms. Faith Mukutu and CFO, Mr M’boo John Mumba are both internal promotions and they should be well-placed to deliver the strategy: exit low return assets and invest in

Morning Note – 11 November 2022

Shopping Trolley - finnCap Consumer quarterly sector note

Fulham Shore’s Franco Manca value-for-money brand is perfect for current market conditions in our view, despite pizza being a crowded segment. Pizza travels well, allowing the business to flex to delivery and take-out according to market conditions. The combination of high gross margins, net cash on the balance sheet and excellent FCF generation should allow it to cope with tougher market conditions AND still protect its expansion capex plans to increase EBITDA by +55% over the next three years.

Morning Note – 16 June 2022

Zambeef - Good H1 results overall, but mixed by division

Zambeef has reported H1 2022 results in respect of the six-month period ending March 2022. The divisions have experienced widely varying trading conditions. The Retail & Cold Chain Food (RCCF) businesses have struggled in the period due to cost inflation and squeezed consumers trading down to lower margin products. The cropping business has had a bumper period due to rapidly rising commodity prices. The other divisions are trading inline, and there is a further benefit from a stronger local curr

Morning Note – 28 April 2022

Zambeef - FY 2021 results: remarkable resilience

ZAM has reported results for the year ending September 2021. Despite another tough (albeit improving) macro year in Zambia, ZAM has delivered a very resilient performance highlighting its strong market position and operational management. The group has navigated high inflation, supply constraints, a consumer trading down, drought and load-shedding to deliver results that are slightly better than our expectations. Year-end net debt was in line and a comfortable 19% of equity. We slightly upgrade

Zambeef - Strong FY update – material upgrades

ZAM has issued a positive trading statement in respect of the full year ended 30 September 2021, requiring upgrades to our FY expectations. This has largely been driven by stabilisation in the macro situation, appreciation of the Kwacha in H2 and increased consumer spending as a result of an economic stimulus package. We upgrade FY2021 revenues by c10%, EBIT by 11% and adjusted PBT by c65%. Our target price remains under review.

Zambeef - H1 results: continued resilience

Zambeef has reported H1 2021 results for half year ended March 2021. In what has been a difficult period for the Zambian economy (low growth, high inflation, very weak currency and drought), Zambeef has once again delivered a very resilient set of results demonstrating operational robustness, an ability to implement inflationary price increases and improved working capital management. Despite expectations of an ongoing tricky macro situation, we have made no changes to our FY2021 expectations.

Morning Note – 6 May 2021

Zambeef - FY results: remarkable operational robustness

Zambeef has reported FY2020 full year results for year ended September 2020. In what has been a tumultuous period for the Zambian economy (low growth, high inflation, very weak currency and drought), Zambeef has delivered a very good set of results demonstrating operational robustness, an ability to implement inflationary price increases and improve working capital management. Despite further expectations of FX weakness and an ongoing tricky macro situation, we have only made minor adjustments t

Morning Note – 30 October 2020

Morning Note – 17 June 2020

Chariot Oil & Gas (CHAR): Corp 2019 results – primed | Evgen Pharma (EVG.L): Corp Investigator-led study in COVID-19 | genedrive (GDR): Corp Conversion of $8m convertible bond | STM (STM): Corp Solid start to FY 2020 with trading in line | Zambeef (ZAM): Corp Inline despite macro headwinds

Zambeef - Inline despite macro headwinds

Zambeef has reported FY2020 interim results for the six-month period ending 31 March 2020. In what is a tough macro environment in Zambia, we believe that the company has delivered a strong performance, with underlying growth in revenue of +27% y-o-y (+9% in US$) and +31% y-o-y underlying growth in gross profit (+12% in US$). While customers are gravitating to lower-margin products, Stock Feed and Cropping have countered with a very good performance. We had largely anticipated these dynamics, so

Morning Note – 4 May 2020

Iofina (IOF): Corp | Zambeef (ZAM): Corp