ANNUAL
REPORT
30 Years of Growth, A Future Beyond Limits
2024
Annual Report 2024
2
Zambeef Products PLC
Annual Report 2024
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Zambeef Products PLC
CONTENTS
Overview
What we do
4
Key Milestones
6
Strategic Reports
Chairman’s Report
8
Chief Executive Officer’s Report
10
Sustainability Report
13
Corporate Governance
21
Board Reports
Board of Directors
32
Director’s Report
36
Statement of Directors’ Responsibilities
39
Independent Auditor’s Report
40
Financial Statements 30 September 2024
Statement of Profit or Loss and Other Comprehensive Income
46
Consolidated Statement of Financial Position
48
Company Statement of Financial Position
49
Consolidated Statement of Changes in Equity
50
Company Statement of Changes in Equity
51
Statement of Cash Flows
52
Notes to the Financial Statements
53
Supplementary Information - presented in USD (unaudited)
121
Notice of AGM
127
Proxy form
136
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Zambeef Products PLC
WHAT WE DO
Overview
Zambeef Products Plc stands as Zambia's largest integrated cold chain food products and agribusiness company and
one of the most prominent in Southern Africa. We are at the forefront of food production, processing, distribution,
and retailing, ensuring a seamless "farm-to-table" experience. By managing every stage of the value chain, we maintain
a consistent and reliable supply of high-quality products. In the cold chain food industry, where maintaining optimal
temperatures is critical, we uphold the highest standards to preserve quality and safety. Our operations are underpinned
by a steadfast commitment to sustainability, driving our efforts across all business segments.
Production
As one of Zambia's leading commercial growers, we cultivate
essential crops such as wheat, maize, and soya beans on our farms -
critical for both food security and our value chain. These crops form
the foundation of our farm-to-family journey, providing a consistent
supply of grains that power our operations and support the nation’s
food supply.
Processing
Our comprehensive processing capabilities cover a broad
spectrum of activities, including:
¡
Animal feed production.
¡
Poultry rearing for both day-old chicks and broilers,
¡
Meat processing through our beef, chicken, and pork
abattoirs.
¡
Dairy production, from milk to processed dairy products.
¡
Flour milling and bread production.
¡
Leather processing, crafting finished leather, footwear,
and industrial shoes.
¡
All our processing plants adhere to ISO 22000 standards
for food safety management systems, ensuring the
highest levels of safety and quality. This certification
enables us to manage and mitigate food safety risks,
safeguarding the well-being of our consumers.
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Zambeef Products PLC
WHAT WE DO (continued)
Our Focus
Our mission is to be the most sustainable, socially responsible,
and financially viable business in our industry. We emphasize
quality control, product differentiation, and affordability,
ensuring our portfolio meets the needs of our customers
while delivering value across the supply chain.
Zambeef is deeply committed to the well-being of the
communities
we
serve.
Our
operations
significantly
contribute to food security, employment, and economic
development in Zambia. Known for our reliability and
consistency, we continue to forge strong relationships with
stakeholders, solidifying our position as one of the country’s
leading companies.
Distribution
With a fleet of approximately 280 trucks, Zambeef operates one of Zambia's
largest logistics networks, giving us unparalleled control over the distribution
of our products. Our advanced logistics operations ensure timely, in-full
deliveries while maintaining the integrity of our cold chain products. A
dedicated control room monitors all vehicles in real time, guaranteeing food
safety and quality from origin to destination.
Retail
Our extensive retail network spans all 10
provinces of Zambia, serving both urban and rural
communities. Our outlets offer a diverse range of
high-quality products, including beef, pork, poultry,
dairy, flour, and bread. Each retail location is
equipped with chilled and frozen storage, and chilled
display counters to preserve product freshness and
quality.
We complement our portfolio of products with
trusted goods from third-party suppliers to provide
customers with a comprehensive food basket.
Through our collaboration with Shoprite in Zambia,
we manage their in-store butcheries and supply our
grocery products to their supermarkets. We also
operate Shoprite Butcheries in Nigeria and Ghana.
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Zambeef Products PLC
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Zambeef Products PLC
244
27
7
Zambia
2024
2023
Zambeef Outlet
54
59
Zambeef Macros
54
50
Novatek
46
42
Zamshu
45
42
Bakery
3
3
Shoprite
42
41
244
237
West Africa
2024
2023
Ghana
Shoprite Butcheries
7
7
Nigeria
Shoprite Butcheries
26
26
Master Meats
1
1
Total
34
34
Zambeef Outlets
202
196
Shoprite Butcheries
75
74
Master Meats
1
1
278
271
Feeding a growing region
Our retail footprint
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Zambeef Products PLC
CHAIRMAN’S REPORT
continuing to impact crop yields and energy generation,
further stress the macroeconomic landscape.
The several challenges experienced during the year
such as the energy deficits led to rising costs of critical
inputs like electricity, grain, and imported materials. The
local currency depreciation and El Niño weather effects
applied a lot of pressure on our margins during the
financial year. The Central Bank’s tightened monetary
policy, aimed at curbing inflation, has further affected
consumer spending as the cost of living continues to rise
in the country.
Despite the several challenges experienced, management
continued to focus on its strategy of revenue
maximization, volume growth, and cost optimisation.
Through these concerted efforts, the Group achieved
revenue growth over the prior year (in Zambian Kwacha
and a decline in USD), underscoring the resilience of our
vertically integrated business model in delivering long-
term value to our shareholders.
Strategy
Despite the economic challenges, the Board remains
steadfast in achieving Zambeef’s strategic objectives.
Our five-year roadmap is guided by four key pillars:
¡
Strengthening our core business: We remain
dedicated to strengthening our core business
through targeted investments aimed at expanding
our market share and consolidating our position in
key sectors.
¡
Human Capital Development: Our tailored human
capital strategy ensures that our workforce is well-
equipped to support the Group’s success, with a focus
on skills development aligned with our strategic
goals.
¡
Enhancing
Strategic
Partnerships:
Strategic
partnerships play a vital role in enhancing our
competitive edge and market position. We are
committed to strengthening these partnerships to
capitalize on synergies and opportunities for growth.
Our commitment to our customers, suppliers,
lenders and other partners remains resolute.
¡
Divestiture of Non-Core Assets: To optimize resource
allocation, we are actively pursuing divestiture
of non-core assets, allowing greater focus on our
primary business areas.
We continue to make progress on our five-year, $100
million expansion plan announced in 2022. The Mpongwe
Farm expansion has advanced substantially, with the first
phase contributing significantly to production efficiency
across the food value chain. The successful harvest of
9,460 metric tonnes of wheat in 2023 marked a key
Dear Shareholder,
As I present my inaugural report, I do so with a deep sense
of responsibility and reflection, following the untimely
passing of my predecessor, Mr. Michael Mundashi SC.
His leadership, wisdom, and unwavering dedication to
Zambeef Products Plc have left an enduring legacy that
continues to inspire us all. Joining the Board and assuming
the role of Chairman under such circumstances has been
both a privilege and a profound reminder of the immense
contributions he made to our organization.
While we mourn his loss, I am fully committed to
honoring his vision and steering Zambeef forward with
the same passion and purpose that defined his tenure.
This report highlights our achievements, acknowledges
the challenges we face, and reaffirms our dedication to
securing a resilient and prosperous future for Zambeef.
The
financial
year
posed
significant
challenges,
including high inflation and volatile exchange rates that
affected operations from early in the period. While
the
government’s
engagement
with
international
bondholders has advanced the debt restructuring
process, underlying economic pressures continue to have
an adverse effect on the business environment. Reduced
copper mining activity and adverse climate conditions
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Zambeef Products PLC
Chairman’s Report (continued)
milestone in our operational capabilities.
During the year, we had the honour of hosting the
Republican President, Mr. Hakainde Hichilema, who
inaugurated the wheat flour milling plant, launched our
first-ever winter maize harvest in Mpongwe, and joined
us in celebrating Zambeef’s 30th anniversary. Other
notable project completions include the new hatchery
and cheese plant, further diversifying our product
offerings.
The Economic Environment
The financial period saw considerable fluctuations in the
Kwacha, with a depreciation of 26% against the USD.
This volatility was driven by high USD demand, reduced
mining activity, and sustained global interest rate hikes,
impacting foreign investment in local bond auctions.
Inflation closed the period at 15.6%, up from 12% the
previous year, driven by currency depreciation and rising
food and energy prices.
Noteworthy was the resurgence in copper prices, which
have seen an upward trend during the first half opening
at USD 8,200/MT and closing at USD 10,129/MT, fuelled
by the green energy transition. However, subdued
production levels continued to impede the realization of
full value, consequently impacting the economy's foreign
exchange earnings potential. These dynamics underscore
the delicate balance between global market forces and
domestic production capacities.
Outlook
Looking ahead, we expect copper prices to continue their
upward trend, bolstering foreign exchange earnings.
However, the tight monetary policy and constrained
government spending on food aid, following a poor crop
season, could further strain consumer spending.
Zambeef’s vertically integrated model and trusted
brands position us well to seize emerging opportunities.
We remain committed to navigating these complex
conditions and reaffirm our commitment to long-term
growth and sustainability.
British International Investment (BII) Partnership
16 September 2024 marked the eighth anniversary of
British International Investment plc’s (BII) investment
in the Company. BII is the Company’s largest ordinary
shareholder with 52.6 million ordinary shares and
100,057,658
convertible
redeemable
preference
shares (“Preference Shares”) in Zambeef Products plc.
The Company has the right to redeem all or part of the
Preference Shares at the redemption price, which would
give BII a 12% compounded annual return on their
investment, subject to a minimum of USD 0.77 per share
(less dividends received). However, the likelihood of such
a repayment by the Company in this new financial year,
or in the medium term, is currently considered by the
Board to be uncertain. The eighth anniversary materially
increased BII’s conversion rights on their Preference
Shares from one-for-one new ordinary share, to one for
3.0833 (recurring) new ordinary shares.
Acknowledgement
During the year, we announced the resignation of Mr.
Roman Frenkel, Non-Executive Director, effective 5 April,
2024. Mr. Frenkel has been an integral part of our Board
for the past three years, bringing insight and expertise
that have enriched our deliberations and decisions.
We extend our heartfelt gratitude to Mr. Frenkel for his
significant contributions to Zambeef Products Plc during
his tenure. His dedication and strategic guidance have
been invaluable, and we wish him continued success in all
his future endeavours.
I am pleased to advise that on 1 August 2024, Mr Patrick
Kalifungwa was appointed as the Chief Financial Officer
and Executive Director of Zambeef Products Plc. He took
over from Mr M’boo Mumba who resigned on 17th July
2024. I wish Mr Kalifungwa every success in his new role.
I am indebted to my fellow Board members for their
devoted leadership throughout the year and I convey
my sincere appreciation to our diligent management and
staff for yet another year of commendable performance.
The steadfast tenacity and fortitude shown in the face of
challenges is a testament to the team. I take great pride
in our collective achievements thus far and I am eager for
the promising opportunities that will shape our future
progress. Together, we will continue to build upon this
foundation of success.
As we navigate the complexities of the current
environment, we remain steadfast in our commitment
to driving sustainable growth and delivering on our
promises to our shareholders. Together, we will honour
Mr. Mundashi's legacy by upholding the principles of
excellence and integrity that he exemplified.
Patrick Wanjelani
Chairman
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Zambeef Products PLC
CHIEF EXECUTIVE OFFICER’S REPORT
subdued crop yields, constrained consumer spending and
a tight monetary policy, the Group delivered robust results
for the year ended 30 September 2024. Escalating costs
of vital inputs and commodities, such as fuel, imported
electricity, imported farming inputs and grain resulted in
increased costs for our production divisions. However,
the Group demonstrated volume growth across key
categories, leveraging the momentum from the 2023
financial year. This was achieved through a meticulous
approach to revenue management and effective sales and
operational execution.
The Group achieved a revenue of ZMW 7.3 billion (USD
295.1 million), accompanied by a gross profit of ZMW 2.5
billion (USD 99.8 million). This represents a year-on-year
increase of 21% and 34% in kwacha terms, respectively,
and a year-on-year decrease of 11% and 1% in US dollar
terms respectively.
Furthermore, the Group delivered an operating profit of
ZMW 487.2 million (USD 19.7 million), marking an increase
of 35% in kwacha terms and a decrease of 1% in US dollar
terms compared to the prior year's ZMW 361.4 million
(USD 19.8 million). This underscores the effectiveness of
our commercial strategy and the successful execution of
strategic expansion projects.
The Group remains steadfast in its commitment to
fortifying its brand equity and providing customers with
high-quality products. With our diversified and vertically
integrated business model, robust brands, and effective
management, we are well-positioned to capitalize on
future opportunities and navigate potential threats with
resilience and agility.
Strategic focus
Our strategic focus remains to optimise our existing
asset utilisation, maximise return and drive profitability.
We remain committed to our strategy of focusing on
our core businesses, in which we strive to be the best in
class. The continued investment in key strategic assets
and divestiture of non-core assets will enable us to
increase cash generation and profitability and therefore
continue to deliver shareholder value. I am pleased to
report that our $100 million medium-term expansion
plans are proceeding as scheduled. We have maintained
our dedication to enhancing capacity and efficiency in
Cropping, Milling, Stockfeed, Dairy, and Poultry.
Our strategic focus in optimising costs and rationalising
the Group’s operations continued throughout the period.
Outlook
Looking ahead, our strong brand presence will continue
to serve as a cornerstone in maintaining customer loyalty.
Additionally, our vertically integrated business model
positions us favourably, ensuring a dependable supply
chain and market for our products. We anticipate a
Overview
The year ended 30 September 2024 saw the Group
achieve revenue growth (in Zambian Kwacha and a
decline in USD) with volume growth in key categories
compared to the prior year, highlighting our agility and
adaptability in an ever-evolving market and economic
landscape. Our management team's relentless focus on
optimizing top-line growth through effective revenue
management, alongside rigorous cost control measures,
has played a vital role in driving our success.
Our relative successes in a difficult operating and
economic environment serve as a testament to the
exceptional talent within our organization and the
enduring partnerships we have cultivated with our
customers, suppliers, and local communities. As we
reflect on the past period, it is clear that our unwavering
dedication to commercial objectives, coupled with
our commitment to operational excellence and cost
optimisation, has not only pushed us forward but also
fortified our position in several sectors in which we
operate.
Financial Performance
Despite
operating
within
a
challenging
trading
environment characterized by a countrywide energy crisis,
Annual Report 2024
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Zambeef Products PLC
Table 1: Divisional financial summary in ZMW’000
Revenue
Gross Profit
Overheads
Operating Profit
2024
2023
2024
2023
2024
2023
2023
ZMW'000s
ZMW'000s
ZMW'000s
ZMW'000s
ZMW’000s
ZMW'000s
ZMW'000s
Retailing and Cold Chain Food
Products
5,349,141
3,579,502
1,172,392
969,955
(1,085,277)
(744,469)
87,115
225,486
Cropping and Milling
4,875,996
3,799,233
1,302,726
873,307
(589,914)
(412,240)
712,812
461,067
Total
10,225,137
7,378,735
2,475,118
1,843,262
(1,675,191)
(1,156,709)
799,927
686,553
Less: Intra/Inter Group Sales
(2,909,292)
(1,332,578)
-
-
-
-
Central Overhead
-
-
-
-
(158,548)
(241,056)
(158,548)
(241,056)
Foreign exchange losses
-
-
-
-
(119,816)
(84,140)
(119,816)
(84,140)
Impairment of goodwill
-
-
-
-
(34,370)
-
(34,370)
-
Group Total
7,315,845
6,046,157
2,475,118
1,843,262
(1,987,925)
(1,481,905)
487,193
361,357
stabilization in the economic environment following the
recent understanding reached by the government with
international bondholders regarding debt restructuring,
coupled with the expected upswing in copper production
and prices over the medium to long term. With these factors
in mind, the Group is well-positioned to capitalize on the
opportunities arising from a positive economic outlook,
strategically investing for the future in anticipation of an
upturn in consumer spending.
Our ongoing commitment to consolidating our balance
sheet through the disposal of non-core assets, optimising
existing assets and the expansion of capacity remains
a central focus. These measures are geared towards
enhancing shareholder value, a goal we remain dedicated
to achieving. By fortifying our financial foundation and
strengthening our operational capabilities, we are poised
for sustained growth and prosperity in the years ahead.
Divisional Performance
Table 1 (ZMW) and Table 2 (USD) below provide a
summary of the consolidated performance of the key
business divisions reported at an operating profit level.
Retailing & Cold Chain Food Products
The financial year was marked with sales volume growth
verses prior year, despite operating within a competitive
and financially constrained environment. Our ability to
retain and increase volumes was driven by meticulous
sales execution and price optimization all of which had a
direct impact on overall revenue growth.
The outbreak of the anthrax virus in the first half
resulted in animal movement restrictions and diminished
consumer confidence in Beef, leading to slowed volume
growth. However, volumes surged in the second half,
driven by a lower relative price of Beef following
availability of standard beef category as farmers looked
to offload cattle following the drought season owing to
limited pasture. The accelerated volume turnaround
in the Beef Division in the second half was helped
by other protein sources which struggled with the
impact of relatively higher feed costs. Beef consistently
maintained a volume-based strategy, prioritizing market
share recovery and competitive positioning over margin
maximisation.
The first half of the year saw sluggish demand for chicken
with gradual improvements in the second half due to
variability in consumer spend. Demand for day-old chicks
remained strong fuelled by small scale demand, and
therefore contributed positively to the Poultry division's
significant growth in profitability.
The Dairy segment profitability was negatively impacted
by a significant increase in feeding costs, imported
electricity costs and operational challenges in our Dairy
farm.
Despite the challenges noted above, the division’s gross
profit grew by 20.9% in kwacha terms, with a decline of
11.1% in USD terms compared to the prior year.
Cropping and Milling
The Cropping segment performed well in spite of the
drought related decline in yields when compared to prior
Chief Executive Officer’s Review (continued)
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Zambeef Products PLC
Chief Executive Officer’s Review (continued)
Table 2: Divisional financial summary in USD’000
Revenue
Gross Profit
Overheads
Operating Profit
2024
2023
2024
2023
2024
2023
2024
2023
USD'000s
USD'000s
USD'000s
USD'000s
USD'000s
USD'000s
USD'000s
Retailing and Cold Chain Food
Products
215,778
196,245
47,293
53,177
(43,779)
(40,815)
3,514
12,362
Cropping and Milling
196,692
208,291
52,550
47,879
(23,796)
(22,601)
28,754
25,278
Total
412,470
404,536
99,843
101,056
(67,575)
(63,416)
32,268
37,640
Less: Intra/Inter Group Sales
(117,357)
(73,058)
-
-
-
-
-
Central Overhead
-
-
-
(6,396)
(13,216)
(6,396)
(13,216)
Foreign exchange losses
-
-
-
(4,833)
(4,613)
(4,833)
(4,613)
Impairment of goodwill
-
-
-
(1,386)
(1,386)
0
295,113
331,478
99,843
101,056
(80,190)
(81,245)
19,653
19,811
year. Despite the drought, high grain prices particularly
for the Summer Crop helped enhance this position. The
Cropping segment delivered a commendable operating
profit performance compared to the previous year. In
addition to the higher grain prices, efficiencies in input
application helped negate the impact of lower yields. The
business was able to mitigate the impact of load shedding
on the irrigated winter crop through the contraction of
imported power via a Power Supply Agreement with the
Zambia Electricity Supply Corporation.
The stockfeed segment also experienced slightly higher
volume growth than prior year supported by the newly
installed pelleting capacity in Mpongwe despite a period
of high pricing necessitated by the rising cost of inputs.
The impact of pricing of Stockfeed did adversely affect the
upstream value chain products.
The Flour segment experienced double-digit growth in
volumes, attributed to the implementation of effective
sales strategies and innovation which saw good demand
for flour.
Acknowledgements
I would like to extend my gratitude to our Board of Directors
for their guidance and support. I am also indebted, to
all our dedicated staff and partners, for their invaluable
contributions to the ongoing success of the Group.
Faith Mukutu
Chief Executive Officer
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Zambeef Products PLC
SUSTAINABILITY
REPORT
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Zambeef Products PLC
SUSTAINABILITY REPORT
1. INTRODUCTION
Zambeef Products PLC (‘’Zambeef’’) is committed
to building a sustainable future for the benefit of all.
We recognise that achieving a long-term sustainable
business depends on well-structured environmental,
social, economic and governance practices.
In this report, we outline the plans and strategies
undertaken by the company to strengthen the
Environmental,
Social
and
Governance
(ESG)
environment.
At Zambeef, sustainability is integral to everything we do.
We place focus on all key stages of the value chain; from
input to processing, distribution and finally retail stage.
In doing this, we prioritised compliance with the
relevant local and global sustainability best practices.
We continued to uphold the principles set out in the
United Nations Sustainable Development Goals (UN
SDGs) and the International Finance Corporation’s (IFC)
environmental and social sustainability framework.
Furthermore, the Zambia Institute of Chartered
Accountants (ZICA), in November 2023, issued Circular
Number 4/2023 in which ZICA pronounced the adoption
of the two sustainability standards IFRS SI and IFRS S2
and the Integrated Reporting Framework. All publicly
accountable entities (PAEs) such as Zambeef were
required to adopt and apply the two sustainability
standards for the annual reporting periods beginning on
or after 1 January 2025 and with the actual reporting
to commence for the reporting periods starting on 1
January 2026.
Following this development, Zambeef trained some senior
managers, in Finance and Sustainability Departments, in
implementing the sustainability standards. An external
consultancy firm was appointed to, independently,
review the process. The business is on track to issue the
detailed sustainability report, based on IFRS S1 and IFRS
S2, before the deadline.
This report has followed the broader, core content,
reporting guidelines of Governance, Strategy, Risk
Management, Metrics and Targets. These are outlined
below:
2. GOVERNANCE
The Company’s Board of Directors (The Board) play
a crucial role in ensuring that the business strategy is
anchored on sustainable business practices. The Board
provides oversight, on the Environmental, Social and
Governance practices through the Environmental and
Social sub-committee of the Board.
Through this Committee the Board provides strategic
advice and guidance regarding systemic and strategic
environmental and social issues. The Committee
ensures that the Company has in place adequate and
robust systems for monitoring the environmental,
health & safety, social management and performance,
in accordance with applicable legislation and Good
International Industry Practice (GIIP).
The Board Committee also monitors the adequacy of
the resources allocated to the implementation of the
Environmental and Social Action Plan (ESAPs).
The Company maintains a Sustainability department
which is headed by an Executive with reporting line to
the Chief Executive Officer. Through the Sustainability
department, management tracks the effectiveness of
the ESG interventions and reports all significant, ESG
matters to the Environmental and Social risk Committee.
This committee in turn, provides feedback to the Board
of Directors on a quarterly basis.
3. STRATEGY
The emerging climate change risks have given rise to the
need to plan for the long-term and reduce the impact on
the operations. The business has implemented a five-
year sustainability strategy which is reviewed annually
and follows the International Financial Corporation (IFC)
Sustainability framework.
The sustainability strategy is covered under eight (8)
strategic goals and these are listed below:
Goal 1: Full local statutory compliance. Pursue Good
International Industry Practice (GIIP).
Goal 2: Assess and manage Environmental and Social
Risks and Impacts.
Goal 3: Provide suitable working conditions for workers.
Goal 4: Efficient use of resources and prevent pollution.
Goal 5: Promote community health, safety, and security
Goal 6: Conduct land acquisition and involuntary
resettlement in a proper manner.
Goal 7: Conserve biodiversity and sustainably manage
living natural resources
Goal 8: Protect cultural heritage for current and future
generations
Goal 2: Assess and manage Environmental and
Social risks and impact: provides the overarching risk
assessment approach on how the business manages the
Environmental, Social and Governance (ESG) emerging
issues. This important goal is guided by the following
objectives:
i. Identify and evaluate environmental and social risks
and impacts at the time of change to operations
occasioned by the introduction of new processes /
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Zambeef Products PLC
SUSTAINABILITY REPORT (continued)
technologies or acquisitions.
ii. Adopt a mitigation hierarchy to anticipate and avoid or
where avoidance is not possible, minimise and where
residual impacts remain, compensate/offset for risks
and impacts to workers, affected communities and
the environment.
iii. Effectively use management systems to promote
improved environmental and social performance.
iv. Ensure that grievances from affected communities
and external communications from other stakeholders
are responded to and managed appropriately.
v. Promote and provide means for adequate engagement
with communities neighbouring company operations
on issues that could potentially affect them and ensure
that relevant environmental and social information is
disclosed and disseminated.
Further, the company also has Environmental and
Social Action Plans (ESAPs) which were agreed with
the Development Finance Institution (DFI) partners to
ensure continuous improvement and implementation of
environmental and social interventions.
4. ENVIRONMENTAL PERFORMANCE
Our environmental and social policy demonstrates our
commitment to promoting sustainable practices that
benefit everyone. We prioritised creating a safe and
healthy workplace, protecting the environment, and
supporting the communities where we operate.
The business consistently assesses its environmental
footprint. Zambeef is compliant with all statutory
requirements
in
the
jurisdictions
where
it
has
operations. Furthermore, through its commitment to
working towards international good practice, we have
implemented a process of continuous improvement in
environmental and social management.
We continued to work closely with the Zambia
Environmental
Management
Agency
(ZEMA)
and
whereby we submitted four Environmental Project
Briefs (EPB). After a thorough review the projects were
approved for implementation.
5. SOCIAL – ECONOMIC PERFORMANCE
We prioritized creating a safe and healthy workplace
for our employees and contractors alike, protecting the
environment and being a responsible corporate citizen
in the communities where we have a presence. This
commitment is enshrined in the Environmental, Social
and Health, Safety & Welfare policies.
Our social impact footprint covers feeding programme,
support towards education, community health, sanitation,
environmental conservation, entrepreneurship and
promotion of culture and heritage.
Feeding program: The company extends support to the
vulnerable (in schools, hospices / hospitals, orphanages,
care homes) through donation of foodstuffs mainly
protein. Delivery of food products is made periodically
and in agreement with the beneficiaries. There are
currently 15 institutions hosting vulnerable and viable
people that the company supports through the food
supply programme. The programme supports over 5,000
individuals with a spend of just under US $2 million in the
last eight (8) years.
Educational and community healthcare institutions: The
company continues to invest in education and healthcare
for its employees, their families and communities in
which we operate. At Mpongwe farms, the company
manages a basic high school with over 500 learners and
seventeen (17) teachers. Further, at Mpongwe farms the
company has clinics which are open to employees and the
community.
The company, also supports communities, government
schools and healthcare institutions located in the
communities that surround our operations such as in
Chisamba and Mpongwe Districts.
As part of sustainable community projects, the Chibombo
boarding school was supported, in the last quarter of the
financial year, with five hundred (500) Day-old Chicks
(DOC) for subsequent rearing and sale. During the
period, our Poultry veterinary team provided technical
support to the boarding school. The project managed to
register 93% success rate with sales made to The World
Vision (41%), school canteen (41%) and teachers (18%).
Following this empowerment program the school was
ready to commence procurement on commercial terms
in the next financial year.
Support to Cultural heritage: The business promotes
cultural heritage through support to more than ten
annual traditional ceremonies hosted in areas where
we operate. The business also supports various sports
activities among its employees and neighbouring
communities.
Annual Report 2024
16
Zambeef Products PLC
SUSTAINABILITY REPORT (continued)
Economic contribution
The company has in place a sustainable sourcing policy.
The in-country sourcing of major raw materials has a
significant economic impact on the communities in the
supply chain as well as the national economy, further
contributing to meeting the UN SDGs.
Zambeef is a significant contributor to the country’s
socio-economic activities, contributing to about 1% of
national Gross Domestic Product (GDP).
Employment
Zambeef continues to be one of the largest employers
in the country, with over 7,000 employees. Just under
40% of employees in the customer-facing functions are
female. Over 98% of employees are Zambian.
Skills development
The Group is fully committed to developing and training
its employees at all levels. During the year, specific
trainings in food safety, occupational health and
safety, safe handling of hazardous materials (asbestos,
chemicals) were offered to employees. The Group’s
continued investment in human resources has resulted
in many senior positions being held by Zambians.
The Group’s cropping division provides significant
employment to rural communities, where poverty levels
are higher than in urban areas. Most of the company’s
raw material suppliers are local and provide employment
to communities in rural areas.
Taxes
The Group is a significant contributor to government
revenues and was awarded, by the Zambia Revenue
Authority – ZRA, as the best Tax payer in 2024 in the
agriculture sector under the large enterprise category.
2
4
3
5
1
NO
POVERTY
GOOD HEALTH
AND WELL-BEING
ZERO
HUNGER
GENDER
EQUALITY
QUALITY
EDUCATION
CLEAN WATER
AND
SANITATION
• >100,000 SME suppliers
• Livestock, grain suppliers
• Feeding Programme
< US $2 million since 2017
• > 5,000 beneficiaries
• Onsite clinics at
Mpongwe and
Huntley farms.
• MoU signed with
EMC - End Malaria
Council
• Onsite education facilities
• Pre-school, Primary and
Secondary education to
children of employees and
community in Mpongwe
• Supports Government
and community schools in
Chisamba, Chongwe and
Chiawa
• Equal employer
• Almost 40% female representation
in customer-facing business
functions
• Adequate and equitable
water, sanitation and
hygiene facilities at all
sites
• Safe and clean drinking
water supplied to
employees, their families
living in company
accommodation
Sustainable Development Goals – SDGs - alignment
The company remained committed to implementing the sustainable development goals. We outline the interventions
attained in the year under review.
6
Annual Report 2024
17
Zambeef Products PLC
SUSTAINABILITY REPORT (continued)
Sustainable Development Goals – SDGs - alignment:
The Company continued to align its social investments in order to meet the United Nations Sustainable Development
Goals – UN SDGs.
Stakeholder engagement strategy
Our stakeholder engagement strategy encompasses
objectives, stakeholder identification, implementation
plan and allocation of resources. A stakeholder
engagement implementation plan guides on the
frequency of engagement which are undertaken monthly,
quarterly or on annual basis, depending on the nature of
the engagement.
Stakeholder objectives
Our stakeholder engagement objectives include building
trust and credibility, proactively influencing policy, timely
provision of objective and transparent information on
business activities and performance, soliciting feedback
and input from stakeholders to inform our business
decisions and to collaborate with key stakeholders.
6. STAKEHOLDER ENGAGEMENT
We recognise the importance of effective stakeholder
engagement in achieving our business objectives and
contributing to the well-being of the communities in which
we operate. Our stakeholder management approach
involves building relationships with stakeholders based
on trust, transparency, and open communication. This
helps to establish credibility, reinforces a positive
reputation and protects our license to trade.
Our
stakeholder
engagement
strategy
and
implementation
plan
are
designed
to
promote
transparency, accountability, and collaboration with
our stakeholders. We believe that effective stakeholder
engagement is critical to achieving our business
objectives and contributing to the well-being of the
communities we serve.
• Clear policies that forbid forced labour,
child labour and practice of modern
slavery
• Protection of Worker rights and
promotion of safe and secure working
environments for all worker categories
• Construction of Environmentally
Controlled Houses (ECH) in Poultry,
new cow barns at Kalundu Dairy and
almost completed installation of state-
of-the-art US $12 million Mpongwe
wheat flour mill
• Continued identification of
potential areas of inequality
• Developed policies to reduce
inequalities
• Priority areas, among others,
included matters pertaining to
remuneration of employees
• 100% Processing Plants – ISO certified
• Chemicals and Solid waste managed
throughout their life cycle in an
environmentally and socially acceptable
manner.
The Group
maintains a
zero-tolerance
to bribery,
corruption and
fraud
• The company actively promotes
reuse, recovery and recycling at
all operations.
• Production of compost manure
at Chisamba and Mpongwe
farms was enhanced
Partnerships for sustainable
development remain fundamental
to the growth of the business
Annual Report 2024
18
Zambeef Products PLC
Stakeholder identification and mapping
We have identified our key stakeholders as customers,
consumers, employees, suppliers of livestock, grain
and services, Government agencies, Investors, Trade
and Sector associations and communities in which we
operate. The stakeholders are selected on the basis of
the impact and influence on our business operations.
Stakeholder engagement strategy - communication:
includes
regular
communication
through
various
channels, social media, email, and face-to-face meetings,
stakeholder surveys and feedback mechanisms to gather
input and concerns, collaboration with stakeholders
on specific projects and initiatives, transparency and
disclosure of business information through annual
reports and other publications.
7. RISK MANAGEMENT AND OPPORTUNITY
Sustainability risk and opportunities emerge from the
environment in which Zambeef operates. The entity’s
operations are impacted by the vast range of factors
which include financial and economic outlook of the
trading environment, climate change, floods, drought,
water security, higher than normal temperatures and
livestock disease.
In order to identify existing and emerging ESG risks there
is a risk assessment which is carried out monthly. This
allows for the entity to monitor and mitigate the impact
on its operations and also the effect of its operations on
each of the ESG pillars.
This process is headed by the Group Manager - Internal
Controls and Compliance and ensures ongoing review
and management of risk.
On a quarterly basis, the Chairperson of the Audit and
Risk Committee of the Board of Directors is notified
of the Risk Management environment and provides
guidance. The committee chairperson, thereafter,
provides the Board of Directors with a report on those
specific matters requiring Board attention.
8. METRICS AND TARGETS - ESG
In this section, we provide disclosures on Climate related
interventions.
Greenhouse Gas emissions – GHG
Significant reduction in Greenhouse Gas emissions
(Scope 1. Direct emissions) of more than 30% from 2021
to 2024. This was due to interventions implemented
to reduce the GHG emissions. The investment in
Environmentally Controlled Houses – ECHs in Poultry
has contributed in achieving lower emissions. On the
other hand, the increase in direct emissions, between
2023 and 2024, was mainly as a result of more beef cattle
being processed through the feedlot at Huntley Farm
and increased throughput at Masterpork.
GHG table (‘000) – Direct emissions
category
2021
2022
2023
2024
Scope 1
572
tCO2e
438
tCO2e
354
tCO2e
383
tCO2e
The largest sources of GHG emissions arose from our
beef related activities. In order to further reduce our
carbon footprint, manure management was identified as
one of the areas for continuous improvement.
We are exploring a number of climate change
interventions meant to reduce the Greenhouse Gas
emissions. Depending on the results of the feasibility
study, the selected initiative will result in significant
reduction in our direct emissions.
Electricity Consumption table
Electricity Consumption table
Category
2021
2022
2023
2024
Electricity
Consumption (GWh)
72.94
92.60
81.59
86.41
Significant reduction in electricity consumption between
2022 and 2024 was due to load management and
increased energy mix diversification.
Coal Usage: We are delighted to report that the business
stopped using charcoal in Poultry division. This decision
helped to promote ,both, the conservation of trees and
reduction of GHG emissions. A total of 5,070 tons of
coal was used, mainly for steam generation in processing
plants and temperature control in environmentally
controlled poultry houses at Zamchick and Zamhatch.
Water Consumption: During the year the business
invested in ,additional, water monitoring tools. The
total volume of water used for irrigation in the financial
year was 86,238,750 m3 on 13,267 hectares of land to
cultivate soya beans, maize, maize silage, and wheat in
the summer and winter cropping seasons.
Occupational Health and Safety (OHS): We were
saddened, as a business, to record a fatality involving a
security manager at our Chiawa Farm. He was attacked
by unknown people whilst conducting night patrol.
With the help of the community and the Zambia Police,
the perpetrators were apprehended. We continued to
engage all key stakeholders to improve security at the
farms.
The Lost Time Injury Frequency Rate (LTIFR) reduced
from 3.04 in 2023 to 2.07 cases in 2024 and against a
benchmark of 2.32 cases. This improvement came on the
back of the board and management's focus in maintaining
SUSTAINABILITY REPORT (continued)
Annual Report 2024
19
Zambeef Products PLC
SUSTAINABILITY REPORT (continued)
Sustainable Development Goals – SDGs – alignment
• Developed, in-house, Greenhouse Gases (GHG)
Assessment Tool
• Curried out a feasibility study to explore renewable
energy supply
• Invested in Solar energy supply
• Applied
technology
in
monitoring
water
consumption at the farms
• Prioritized protection, restoration and promotion
of sustainable use of land
• Increased production of compost manure at
Mpongwe and Chisamba farms
• With an Irish University, successfully piloted a heat
recovery project at Chisamba Huntley farm in April
2024
• Promotion of double-cropping saw use of same
land for more crop production
a safe working environment.
Food Safety: A total of 803 customer grievances were
received in 2024 compared to 1,162 in 2023. 82% of the
grievances were fully resolved at the close of the Financial
Year compared to 66% of 2023. The company-maintained
ISO 22000 – Food Safety Management System certifications
across 7 manufacturing facilities. With the assistance from
the IFC, the business is currently implementing Global
Good Agriculture Practices (Global GAP) and Global Smart
certification schemes at its primary production facilities
(livestock farms and the two stockfeed plants, plus all farms
involved in crop production). These schemes are intended
to enhance food safety from farm production to our retail
outlets.
Biosecurity and Animal Welfare: None of our livestock
facilities recorded any disease of economic significance in
the year under review. The implementation of the Global
Smart scheme at our livestock sites resulted in significant
improvement in the biosecurity and animal welfare
performance at the facilities.
The Zamhatch Breeder Farm and Hatchery, and Kalundu
Dairy Farm are earmarked for the Department of
Veterinary Services (DVS) compartmentalization scheme in
accordance with the World Organization of Animal Health
(WOAH) principles.
With support from the IFC, the business implemented an
Antimicrobial Stewardship (AMS) program, in order to fulfil
the aspirations highlighted in our Antimicrobial use policy.
Under this scheme, antimicrobials are not used for growth
promotion.
Annual Report 2024
20
Zambeef Products PLC
Annual Report 2024
21
Zambeef Products PLC
CORPORATE GOVERNANCE
STATEMENT
Annual Report 2024
22
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT
Recognising that achieving a long-term
sustainable business depends on stable,
well-functioning and well-governed
environmental, social, economic and
governance practices, the Company strives
for continual development in these areas.
Zambeef Products Plc (“Zambeef” or the “Company”)
remains committed to maintaining, promoting and
achieving the highest standards of corporate governance
and corporate citizenship by adhering to the relevant
codes of best practice, and the principles of fairness,
accountability, responsibility, transparency and integrity.
Recognising that achieving a long-term sustainable
business depends on stable, well-functioning and
well-governed environmental, social, economic and
governance practices, the Company strives for continual
development in these areas.
Additionally, the Company through its Board of Directors
has put together its basic framework on Corporate
Governance and has developed a Corporate Governance
Code that complies with the Lusaka Securities Exchange
(LuSE) Corporate Governance Code. Further, the
Company has formally adopted the Quoted Companies
Alliance (QCA) Corporate Governance Code (“QCA
Code”) on a ‘comply or explain’ basis, as required by the
AIM Rules for Companies.
FRAMEWORK
As a Company listed on exchanges in Lusaka and
London, we are required to comply with LuSE and a UK
specific corporate governance code. For the purposes of
being quoted on AIM, and bearing in mind the size and
scale of the operations of the Company, the Company
has adopted the Quoted Companies Alliance (QCA)
Corporate Governance Code (“QCA Code” as the basis of
its corporate governance standards.
On LuSE, Zambeef Products Plc. has established a
formal governance framework by way of adopting the
LuSE code as well as comprehensive company policies
and guidelines, audit and assurance procedures which
ensure compliance with applicable laws and regulations
recognized codes of good practice.
This report, alongside further relevant information
contained in the other reports and financial statements
that form part of the Annual Report for the year,
therefore, aims to provide an overview of the Company’s
governance practices. It is comprehensive, albeit to avoid
duplicity of information.
CORPORATE GOVERNANCE IN ACTION
The Company’s corporate governance practices are put
together in the Corporate Governance Handbook which
is subject to review by the Board from time to time. The
Handbook addresses the various areas of governance
and covers the following aspects:
¡ Share Dealing Code
¡
Disclosure Policy
¡
AIM Rules Compliance Policy
¡
LuSE Listing Rules Compliance Policy
¡
Anti-Corruption and Bribery Policy including
Incident reporting and whistleblowing
Annual Report 2024
23
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
¡
Social Media Policy
¡
Related Party Transactions Policy
¡
Delegation of Authority
¡
Board Charter
¡
Terms of Reference for the Remuneration and
Succession Committee
¡
Terms of Reference for the Audit and Risk
Committee
¡
Terms of Reference for the Environmental and
Social Committee
¡
Memorandum on Inside Information and;
¡
Group Code of Ethics
THE BOARD OF DIRECTORS
The Company has a unitary board of directors, which
at the start of the year under review, comprised nine
directors but later reduced to seven, retaining a number
within that required per its Articles of Association,
yet balancing the requisite business acumen and skills
pertinent to the business. Of the seven Directors, four
are Non-Executive Directors, and two are Executive
Directors. Five Non-Executive Directors are considered
independent by the Board, in terms of the guidelines
prescribed in the QCA Code and the LuSE Corporate
Governance Listing Rules.
The Board is responsible for the performance and
direction of the Company, through the establishment of
strategic objectives and key policies, as well as approving
major business decisions, in accordance with its charter.
The Board believes that its overall composition is
appropriate, with no individual or group dominating the
decision-making process, and with a good balance of
knowledge, experience and independence. The role of
the Chairman is separate from that of the Chief Executive
Officer (CEO) and considered to be independent.
New appointments to the board are carried out in a
transparent manner and are made in accordance with the
recommendations of the Remuneration and Succession
Committee and, following approval of the board, are
subject to confirmation by shareholders at the Annual
General Meeting.
Details of the current Directors, their roles and
background are available on the Company’s website at
www.zambeefplc.com.
RESPONSIBILITIES OF THE BOARD
The Board's responsibilities are set out by a Board Charter,
which requires that there is an appropriate balance of
power and authority on the board. The Board Charter
was reviewed during the year under review, the board
satisfied its responsibilities in compliance therewith. The
Board is responsible for the overall stewardship of the
Company. The Board’s role consists of two fundamental
elements: decision-making and oversight. The decision-
making function is exercised through the formulation,
with management, of fundamental policies and strategic
goals and the approval of certain significant actions. The
oversight function concerns the review of management
decisions, the adequacy of systems and controls and
the implementation of policies. In performing its role,
the Board makes major policy decisions, participates in
strategic planning, delegates to management authority
and responsibility for day-to-day affairs and reviews
management’s performance and effectiveness.
Principles of good governance are embedded in the
way the Board; its sub-committee and the executive
committee
operates
their
business.
The
Board
applies integrity, principles of good governance and
accountability throughout its activities and each director
brings independence of character and judgment to their
role.
CHAIRMAN AND CEO ROLES
The roles of the Chairman and CEO are performed by
separate persons, with the Chairman being responsible
for;
•
Providing leadership to the Board in relation to all
Board Matters;
•
Representing the views of the Board to the public;
•
Acting as a conduit between the Board and being
the primary point of contact between the Board
and the Chief Executive Officer;
•
Overseeing the Board agenda and conducting all
Board meetings;
•
Overseeing and conducting Annual General
Meeting (AGM) and other shareholder meetings
and;
•
Keeping the Board informed of all major project
proposals by way of specific reports;
Annual Report 2024
24
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
The Board Composition
Director
Title
Date of Appointment
Patrick Wanjelani
Chairman
19/06/2024
Faith Mukutu
Executive Director (CEO)
04/09/2019
Pearson Gowero
Independent Non-Executive Director
01/03/2021
Jonathan Kirby
Independent Non-Executive Director
03/08/2017
Patrick Kalifungwa
Executive Director (CFO)
01/08/2024
Monica K Musonda
Independent Non-Executive Director
01/03/2021
Muyangwa Muyangwa
Independent Non-Executive Director
21/04/2023
John Rich
Non-Executive Director
21/06/2023
As of the date of the report, the Board comprised of the Chairman, CEO, CFO and five Non-Executive Directors, four
of whom are considered by the company to be independent in character and judgement and free from any business or
other relations that could materially interfere with the exercise of their judgement. Brief curricula vitae of the directors
appear on page 32 - 35 of this report.
The Board is satisfied that all the Directors have sufficient time to devote to their roles and that it is not placing undue
reliance on key individuals.
MEETINGS OF THE BOARD
The board has four regular meetings each year and the company’s Articles of Association make provision for decisions to
be taken between meetings by way of written resolutions, when required. During the year under review, four meetings
were held and attendance was as shown by the table below;
DIRECTORS' NAME
BOARD
MEETING
(23/11/23)
BOARD
MEETING
(21/02/2024)
BOARD
MEETING
(19/06/2024)
BOARD
MEETING
(25/09/2024)
TOTAL
MEETINGS
ATTENDED
TOTAL
MEETINGS
HELD
M Mundashi
V
V
V
1
4
P Wanjelani
BA
BA
2
4
F Mukutu
4
4
R Frenkel
RS
RS
2
4
P Gowero
4
4
J Kirby
4
4
P Kalifungwa
BA
BA
2
4
M Mumba
RS
3
4
M Musonda
4
4
M Muyangwa
X
X
2
4
J Rich
4
4
Key
Attended
X
Absent
V
Vacated
BA
Before Appointment
RS
Resigned
Annual Report 2024
25
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
BOARD COMMITTEES
To assist in exercising its responsibilities, the Board has established three committees:
• the Audit and Risk Committee
• the Remuneration and Succession Committee
• the Environmental and Social Governance Committee.
The board committees operate under approved mandates and terms of reference, which define their functions and
responsibilities. Through the Company’s management committee, management meets and serves to assist the board
to co-ordinate, guide and monitor the management and performance of the Company. Following each meeting, the
committee chair reports to the Board on the committee’s activities, and makes such recommendations as are deemed
appropriate in the circumstances. Minutes of committee meetings are made available to all directors on a timely basis.
Non-executive directors actively participate in all committees.
1.
Audit and Risk Committee
The Board approved the membership to the Audit Committee of the long outstanding and independent advisor
and co-opted member - Hastings Mtine in September 2021. (QCA Code principle 6: He has extensive experience
as a Chartered Accountant in the fields of financial reporting, external audit, internal audit, corporate governance
and risk management gained in public practice and on various corporate boards. He is a former Senior Partner for
KPMG Zambia. He provides a detailed review and advisory service to the Audit Committee across each of these
areas.
Responsibilities:
•
The primary role of the Audit Committee is to ensure the integrity of the financial reporting and audit
process, including review of the interim and annual financial statements before they are submitted to the
board for final approval.
•
To ensure that a sound risk management and internal control system is maintained and reviewing the
system for monitoring compliance with applicable laws and regulations.
•
To give due consideration and review of corporate governance matters in accordance with relevant
frameworks including the LuSE Corporate Governance Code and the QCA Code.
•
Monitor and review the reports and function of the internal audit department, in line with its own charter,
which requires systematic evaluation of the effectiveness of risk management, control, compliance and
governance processes for the Group.
•
Monitor and review the reports of the external auditors and their performance.
•
At least once a year, the members of the committee should meet the external auditors without the
presence of any Executive Director.
•
The committee should also consider and make recommendations to the Board, to be put to shareholders
for approval at the Annual General Meeting, as regards the appointment and/or reappointment of the
company’s external auditor.
•
Monitor the ethical conduct of the Company, its executives and senior officials.
Annual Report 2024
26
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
Committee Meeting Attendance Schedule
NAME
CATEGORY OF
DIRECTOR
20/11/2023
13/02/2024
11/06/2024
25/11/2024
Total
Meetings
Attended
Total
Meeting
Held
Jonathan Kirby
Chair: INED
4
4
Roman Frenkel
NED
RS
RS
2
4
Pearson Gowero
INED
4
4
Hastings Mtine
Committee Member
A
3
4
John Rich
NED
BA
BA
2
4
Key
Attendance
A
Apology
BA
Before Appointment
RS
Resigned
2.
Remuneration and Succession Committee
The committee provided oversight over the remuneration and compensation for senior management to retain
and motivate staff to perform at the level of the quality required. The committee is chaired by an independent
non-executive director.
Chairman – Monica Musonda
Members – Jonathan Kirby, Roman Frenkel,* Muyangwa Muyangwa and John Rich* Roman Frenkel resigned
from the Board and the committee on 5th April 2024 and was replaced by John Rich as a British
International Investment (Bii) representative in line with the Shareholder Agreement.
Responsibilities:
• Regularly review the structure, size, knowledge, experience and diversity of the Board, as well
as the sub-committees of the Board, and make recommendations to the Board with regard to
changes.
• Responsible for identifying, evaluating and nominating, for the approval of the Board, candidates
to fill Board vacancies as and when they arise.
• Consider succession planning for Directors and other senior executive management, and in
particular, for the key roles of Chairman and CEO of the Company. The appointment of CEO and
directors can only be made following a formal, rigorous assessment by this committee and its
formal recommendations being made to the Board, having also evaluated the balance of skills,
knowledge, experience and diversity on the Board.
• Determine and agree with the Board the framework or broad policy for the remuneration of
the CEO, the Chairman of the Board, the Executive Directors, the Company Secretary, and such
other members of the executive management of the Group to whom the Board has extended the
remit of the committee.
• Determining the remuneration policy by considering all factors which it deems necessary,
including relevant legal and regulatory requirements, the provisions and recommendations
of the QCA Code and associated guidance. The objective of such policy shall be to ensure that
members of the Group executive management are provided with appropriate incentives to
encourage enhanced performance and are, in a fair and responsible manner, rewarded for their
individual contributions to the success of the Group.
• The committee ensures reporting of the Remuneration Committee’s agreed fees and
remuneration, for both the executive directors and non-executive directors, in the formal Report
of the Directors in the Annual Report. This requires formal approval by the shareholders in an
AGM. The Chairman ensures he is available to answer questions/comments put forward by the
shareholders in the AGM regarding directors’ fees and remuneration.
• Perform evaluations of the Board, Board Committees (and their constituents), and recommend
training where necessary.
Annual Report 2024
27
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
Committee Meeting Attendance Schedule
NAME
CATEGORY OF
DIRECTOR
21/11/2023
09/05/2024
11/06/24
Total
Meetings
Attended
Total
Meeting
Held
Monica Musonda
Chair: INED
3
3
R Frenkel
NED
RS
RS
1
3
Jonathan Kirby
INED
3
3
Muyangwa Muyangwa
INED
A
2
3
Felicity Preacher***
Observer
A
A
1
3
Key
Attendance
A
Absent
BA
Before Appointment
***
Pursuant to the Shareholder Agreement with Bii
3.
Environmental and Social Committee
Chairperson - Pearson Gowero
Members – Roman Frenkel and Monica Musonda
Responsibilities:
•
Provide strategic advice and guidance to the Board in relation to systemic and strategic environmental
and social (“E&S”) issues which affect the Company’s business model and strategy.
•
Ensure that the Company has in place adequate and robust systems, policies and procedures for monitoring
the E&S management of the Company, in accordance with applicable legislation and Good International
Industry Practice (“GIIP”), defined by IFC Performance Standards.
•
Monitor the implementation of the Environmental and Social Action Plan and any corrective action plans
that may be developed in due course.
•
Oversee any Company investigations relating to breaches of E&S laws, regulations and standards and/or
the Company’s E&S policies, management systems and plans.
•
Ensure good corporate citizenship through promotion of equality, prevention of unfair discrimination and
reduction of corruption.
•
Ensure contribution to development of the communities in which its activities are predominantly
conducted, or within which its products or services are predominantly marketed.
Annual Report 2024
28
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
Committee Meeting Attendance Schedule
NAME
CATEGORY
DIRECTOR
21/11/2023
13/02/2024
11/06/2024
10/09/2024
Total
Meetings
Attended
Total
Meeting
Held
Pearson Gowero
Chair: INED
4
4
Roman Frenkel
NED
RS
RS
0
4
Monica Musonda
INED
A
3
4
Muyangwa Muyangwa
NED
A
A
2
4
John Rich
NED
4
4
Key
Attendance
A
Absent
RS
Resigned
Retirement and Election of Directors
It is the Board’s policy that new directors are subject to confirmation at the first opportunity following their appointment.
All directors, excluding the Executive Directors are subject to retirement and re-election on a rotational basis with one-
third of the board being re-elected annually. This is in accordance with Section 206 (5) of the Companies Act.
Performance Evaluation of the Board
The Board carries out an annual self-assessment of its performance during the year, based on its Board Charter’s
objectives, with the Company Secretary collating and reporting on the findings from each Board member.
Areas covered in the self-assessment include:
•
Management of Board meetings and discussions;
•
External and Internal Board relationships;
•
Skills of Board members;
•
Reaction to events;
•
Chairman;
•
Chairman and CEO relationships;
•
Attendance and contribution in meetings;
•
Open channels of communication;
•
Risk and Control frameworks;
•
Composition;
•
Terms of Reference;
•
Committees of the Board;
•
Company Secretary;
•
Timeliness of information;
•
Board Agenda;
•
AGM;
•
External Stakeholders;
•
Induction and training; and
•
Succession planning.
Annual Report 2024
29
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
The board will continue to implement necessary changes
to enhance its performance.
BOARD INDUCTION AND DEVELOPMENT
Newly appointed directors are taken through the
Company’s Articles of Association, the Board Charter,
Codes of conduct, policies, listing regulations and
applicable acts such as Companies Act and Securities Act.
They follow a tailored induction programme facilitated
by the Company Secretary which includes a scheduled
trip to tour the operations.
COMPANY SECRETARY
The Company Secretary is responsible for implementing
and sustaining high levels of corporate governance and
keeps abreast of legislation, regulations and corporate
governance developments which may impact on the
business. All Directors have direct access to the Company
Secretary.
STAFF
DEVELOPMENT,
TRAINING
AND
INFORMATION TECHNOLOGY
The Company is committed to staff development and
training as this is a key ingredient to continued and
improved operations.
The Company places emphasis on information technology
as key in its strategy of delivering quality products which
are the first choice of our customers and consumers.
STAKEHOLDER RELATIONS
Zambeef places considerable importance in maintaining
active investor relations through open, fair and
transparent communications. The Company ensures
timely dissemination of information to its investors and
other stakeholders through various media. A dedicated
shareholders unit through the Transfer Secretaries is
responsible for active interaction with the shareholders.
The Zambeef business model has identified and
understands the importance of maintaining strong
working relationships with;
•
its key small-scale suppliers across grains and
livestock,
•
its larger commercial raw material/input suppliers
and livestock suppliers,
•
its wide customer base across stockfeed, cold
chain food products, and other products,
•
its regulators such as Zambia Environmental
Management
Agency
(ZEMA),
Patents
and
Companies Registration Agency (PACRA), Water
Resources
Management
Agency
(WARMA),
Lusaka Stock Exchange (LuSE), Securities and
Exchange Commission (SEC), AIM Nominated
Advisor;
•
its financiers;
•
social responsibility partners in communities.
In addition, Zambeef has shareholder meetings,
formally through Annual General Meetings (AGM)
and Extraordinary General Meetings (EGM), where
required, and informally through half-yearly meetings
with institutional shareholders. Shareholders’ views are
communicated in an open and frank manner, with senior
management taking due note of their concerns when
expressed. The Board believes that these engagements
have proven successful, as shareholder views have fed
into the current corporate strategy. The CEO and Chief
Financial Officer (CFO) meet and conduct formal results
presentations with shareholders on a half-yearly basis.
The Board considers the AGM key in providing
shareholders with the opportunity to ask the Board and
chairperson of the Audit committee questions concerning
the affairs of the Company. Accordingly, all legal and
regulatory requirements, notices and information are
released well in advance to shareholders, regulators,
stock exchange and Company websites. To this end,
the Company ensures copies of the Annual Report and
Accounts are made available well before the AGM as this
ensures the shareholders have insight of the business
performance.
The Group publishes the outcome of all shareholder
resolutions immediately after each AGM or EGM.
Zambeef maintains all market announcements and
Annual Reports on its website for the last 10 years.
Internally the Board and Management consider effective
communication as being critical to the success of the
business.
INTERNAL AUDITORS
The Company has an internal audit function designed to
add value to the Company and improve operations.
The Internal Audit function provides an independent
assurance service to the Board, the Audit and Risk
Committee and management. The Internal audit function
is formally defined via an Internal Audit charter and
assists the Company to accomplish its objectives by
bringing a systematic approach in the evaluation of the
effectiveness of the governance, risk management and
control processes that management has put into place.
The head of the internal audit function attends the Audit
and Risk Committee meetings and has unrestricted
access to the chairperson of the committee.
The Board requires competitive bidding for significant
purchases and contracts, above determined thresholds,
through a formal Board-approved Delegations of
Annual Report 2024
30
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
Authority policy that covers the Board and senior
management.
EXTERNAL AUDITORS
External Auditors are appointed by the shareholders
and are subject to reappointment at the AGM.
The current external auditors of the Company are
PricewaterHouseCooper (PwC).
The Company together with External Auditors ensures
that quality and independent audits are undertaken
through regular and systematic Audit Planning and also
rotation of client staff engaged on the audits.
ORGANISATIONAL INTEGRITY
In its continued efforts to foster integrity within the
organisation, the Company continues to enforce
the Group Code of Ethics policy and encourages all
employees to make a declaration of their assets and/or
business involvements’ every year.
Employees are also encouraged to declare all the gifts
received in the course of employment by way of a gift
register, maintained by the Company Secretary.
INTERNAL CONTROL
The control systems are designed to safeguard the
Company’s assets, maintain proper accounting records
and ensure the reliability of management and financial
information produced by the Company. Control systems
are based on established Zambeef group policies and
procedures and are implemented by trained personnel,
with an appropriate segregation of duties.
The effectiveness of these internal controls and systems
is monitored by the internal audit department, with the
aid of self-assessment audit checklists. Management
is also in the transitional process of reporting Internal
Controls over Financial Reporting as prescribed by
the Zambian Securities and Exchange Commission.
The independent external auditors, through the audit
work they perform, confirm that the abovementioned
monitoring procedures are being applied effectively.
Nothing has come to the attention of the Directors
or the independent external auditors to indicate
that any material breakdown in the functioning of
abovementioned internal controls and systems has
occurred during the year under review.
ETHICS
The Company’s fundamental policy is to conduct its
business with honesty and integrity and in accordance
with the highest legal and ethical standards. The
Company has a Code of Conduct and Business Practices,
determining the minimum standards required of all staff,
which is disseminated throughout the Company.
The Company has implemented, and widely disseminated
to all stakeholders (including suppliers), a Group Code of
Ethics and Conduct.
INCIDENT REPORTING, ANTI-BRIBERY AND
CORRUPTION AND WHISTLEBLOWING
POLICIES AND PROCEDURES
The Company has detailed policies and procedures
covering Incident Reporting, Anti-Bribery and Corruption
(ABC) and Whistleblowing.
The Group’s ABC program has been formulated in
conjunction with British International Investment (Bii),
following best international practice. It is well structured,
documented and rigorously monitored.
There is a dedicated internal Whistleblowing Manager,
managing reports and complaints. These complaints can
be made in various forms, and anonymously, without
fear of adverse consequences. This policy has active
senior management encouragement and is widely
communicated within the Group, with a verifiable and
transparent process of handling complaints. This has
resulted in valuable information being obtained for
further action.
Internal Audit closely monitors, reviews and reports on
all of these policies to the Audit and Risk Committee of
the Board.
LEGAL COMPLIANCE
The board requires management to submit an annual
declaration confirming that the Company’s operations
complied with relevant laws and regulations. In addition,
the Company complies with local legislation. The
Company has recourse to the group Company Secretary
and external legal advice on matters of legal compliance.
INSIDER TRADING
Directors and officers of the Company who have access
to unpublished, price sensitive information, in respect of
the Company, are prohibited from dealing in the shares of
the Company, during defined restricted periods, including
those periods immediately prior to the announcement of
interim and final financial results. These regulations are
clearly stipulated in the Share Dealing Code section of
the Corporate Governance manual.
SHARE DEALING
The Company has adopted a share-dealing code for
dealings in shares by Directors and senior employees
appropriate for an AIM-quoted company. The Directors
ensure that they comply with Rule 21 of the AIM rules
for Companies relating to Directors' dealings and take all
reasonable steps to ensure compliance by the Company’s
relevant employees, including obtaining the advice of its
AIM Nominated Advisor. In compliance with the Market
Abuse Regulation (MAR), the Chairman of the Board is
responsible for share dealings by the Directors, assisted
Annual Report 2024
31
Zambeef Products PLC
CORPORATE GOVERNANCE STATEMENT (continued)
by the Company Secretary as the Compliance Officer.
DIRECTORS’ INTERESTS IN OTHER
COMPANIES
In compliance with Section 110 of the Companies Act of
Zambia, all Directors are required to declare to the Board
their interests in other companies, and this is considered
if any such company enters into any contract with
any Group company. The Group has a Related-Parties
Transactions policy which aims to ensure transparency in
related-party transactions and appropriate management
of any approved transactions.
RELATED-PARTY TRANSACTIONS
The Board gives authorisation for any transactions
carried out by the group with any anyone or considered
a related party. Such transactions are evaluated as
to whether the parties are treated fairly and market
conditions. For recurrent transactions carried out with
clients during the GGroup’sordinary course of business
under normal market conditions that are not significant,
the Board gives prior authorisation for the general terms
of the transaction.
DIRECTORS’ SHAREHOLDINGS
In compliance with Sections 30, 110 and 195 of the
Companies Act of Zambia, all Directors are required to
disclose their shareholdings in the Company and any
related companies.
MARKET DISCLOSURE
The Company prepares trading statements, interim and
final results as required by the AIM market, the LuSE
and SEC rules and also prepares a detailed narrative
statement to accompany the results. Company results are
disseminated widely through the LSE, LuSE, newswires
and our distribution lists.
COMPLIANCE STATUS OF LuSE CORPORATE GOVERNANCE RULES
ZAMBEEF COMPLIANCE SCHEDULE
Category
Total Rules
Applicable
Non-
Applicable
Full
Compliance
Partial
Compliance
Non-
Compliance
%N/A
%FC
%PC
%NC
General Matters
15
15
-
15
-
-
-
100
-
-
Chairman and CEO
5
4
1
4
-
-
20
80
-
-
Executive and NEDs
4
4
-
4
-
-
-
100
-
-
Directors' Compensation
9
9
-
9
-
-
-
100
-
-
Share & Share dealings
4
4
-
4
-
-
-
100
-
-
Board meetings
4
4
-
4
-
-
-
100
-
-
Board evaluations
1
1
-
-
-
1
-
100
-
-
Company Secretary
4
4
-
4
-
-
-
1000
-
-
Board committees
10
10
-
9
-
1
-
100
-
-
Legal and Compliance
2
2
-
2
-
-
-
100
-
-
External audit
7
7
-
7
-
-
-
100
-
-
Internal audit
12
12
-
12
-
-
-
100
-
-
Risk
7
7
-
7
-
-
-
100
-
-
Integrated sustainability reporting
7
7
-
7
-
-
-
100
-
-
Disclosure and Stakeholder Reporting
4
4
-
4
-
-
-
100
-
Organisation integrity
6
6
-
6
-
-
-
100
-
101
100
1
97
0
2
1
98
-
-
Summary of areas that are not fully compliant or inapplicable
Areas not applicable
i.
If the role of the chairperson and chief executive are performed by the same person;
a.
The board must have an independent director as deputy chairperson
b.
There must be a complement of independent directors sufficiently involved in the annual evaluation of the
chairperson’s performance
Annual Report 2024
32
Zambeef Products PLC
Faith Mukutu (age 44)
Executive Director: Chief Executive Officer
Nationality: Zambian
Qualifications:
A.C.C.A. (Chartered Certified Accountant) – Zambia Centre for
Accountancy Studies, Zambia; Certified Accounting Technician – Zambia
Centre for Accountancy Studies, Zambia.
Experience:
Over 15 years of experience in senior finance positions of major
corporates, including Zambia Sugar Plc and Zambian Breweries (part of
SABMiller Group).
External appointments:
Current directorships include: Good Nature Agro Limited, Greater Kafue
Landscape Limited, Zayohub Zambia Ltd, Golden Camp Solutions, Seedco
Zambia Limited, First National Bank Zambia Limited and CEC Renewables
Limited.
Patrick Wanjelani (age 58)
Chairman
Nationality: Zambian
Qualifications:
Master of Business Administration (MBA) from Oxford Brookes
University, UK; Fellow Certified Chartered Accountant (FCCA) from
Thames Valley University, UK; Diploma in Professional Accounting, UK;
Diploma in Business Administration, UK; Leadership for the Cutting
Edge, South Africa); Certificate in Corporate Governance and Ethics,
South Africa.
Experience:
Mr. Wanjelani has extensive experience in banking and finance,
accumulated over 30 years. His experience includes organizational
change and transformation, financial planning, and corporate governance.
External appointments:
Currently serving as Director of Kenya Reinsurance Corporation Zambia
Ltd, Center For Infectious Disease Research In Zambia (Cidrz), Kumil
Energy Limited, Newgen Holdings Limited, Newgen Construction Limited,
Bluelight Risk Services Limited, Kansanshi Copper Mine Plc.
Board of Directors
Annual Report 2024
33
Zambeef Products PLC
Katebe Monica Musonda (49)
Non-Executive Director
Nationality: Zambian
Qualifications:
LL. B (UNZA); LL.M (Corporate Law & Finance - London) Executive
Management Programme (Harvard Kennedy).
Experience:
Over 16 years PQE, Debt & Equity Capital Markets & Project Finance; 9
years in FMCG having founded Java Foods. Previously worked as General
Counsel to the Dangote Group.
External Appointments:
Independent Non-Executive Chair Zambian Breweries Plc, Airtel
Networks Plc. Non-Executive Director Mixta Nigeria, Dangote Cement
Zambia Limited, Gralix Limited Kanona Power Company, Taifa Marimba;
Founder & CEO Java Foods.
Jonathan Kirby (age 63)
Non-Executive Director
Nationality: South African
Qualifications:
Bachelor of Accounting (University of the Witwatersrand, RSA) Higher
Diploma in Tax Law (Rand Afrikaans University, RSA) CA (RSA).
Experience:
Over 32 years of business management and Finance in London, Hong Kong,
Singapore and South Africa. Previously Vice President (Finance) of AB Inbev
Africa and CFO of SABMiller Africa.
External appointments:
Currently on the boards of Cavalier Group of Companies - South Africa,
McWade Productions (Pty) Limited - RSA, Prime Financial Services (Pty)
Limited - RSA, Greenway Farms (Pty) Limited RSA, Automated Outsourcing
Solutions (Pty) Limited - RSA. Southridge Dune (Pty) Limited - RSA, African
Dune (Pty) Limited -RSA, MIRO Forestry Products Limited and Timber
Products Plc - UK.
Board of Directors (continued)
Annual Report 2024
34
Zambeef Products PLC
Pearson Gowero (age 66)
Non-Executive Director
Nationality: Zimbabwe
Qualifications:
BSc (Economics) Hons (University of Zimbabwe)
MBL (University of South Africa).
Experience:
40 years of experience in business management including Retail and Fast-
Moving Consumer Goods. He served in various senior executive roles as well
as Chief Executive Officer of two listed companies. He has in-depth knowledge
of Zambian and Zimbabwean Industries.
External appointments:
Has previously served as a Director on several boards and is currently a
Director of SeedCo Zimbabwe Limited, SeedCo International Limited, NMB
Bank Zimbabwe Limited.
Patrick Kalifungwa (age 44)
Executive Director: Chief Financial Officer
Nationality: Zambian
Qualifications:
Chartered Accountant, a Fellow of Association of Certified Chartered Accountants
and Zambia Institute of Chartered Accountants, post graduate diploma in International
Business.
Experience:
Over 20 years’ experience in the financial services sector. He has served in various
senior management roles and been responsible for overseeing the overall financial
management and control processes of these organisations. He has been responsible
for executing key financial actions across the board, including coordinating and
management of quarterly profit forecasts, and advising on annual departmental
budgets.
External appointments:
Current directorships include Liutebm University, Semane Engineering Zambia
Limited (Mining & Engineering Solutions), Monter Capital Partnership Ltd, Kilimanjaro
Country Lodge.
Board of Directors (continued)
Annual Report 2024
35
Zambeef Products PLC
Muyangwa Muyangwa (age 59)
Non-Executive Director
Nationality: Zambian
Qualifications:
Master’s Degree in Business Administration from the University of Bath
in the United Kingdom and Bachelor’s Degree in Business Administration
from the Copperbelt University, Zambia.
Experience:
Over 30 years of experience in the financial and fiscal sectors.
Previously served in various positions at the International Monetary
Fund (IMF), including as a Senior Economist at the IMF – Headquarters,
Washington DC, and as Technical Assistance Advisor and Revenue
Administration Advisor in East Africa and West Africa, respectively.
Before joining the IMF, he worked for Zambia Revenue Authority. where
he held the roles of Commissioner Value Added Tax and Commissioner,
Customs Services.
External appointments:
Currently the Director General of the National Pension Scheme Authority
-Zambia, Non-Executive Director of ZCCM Investments Holdings Plc and
M & N Capital Limited.
John Rich (age 72)
Non-Executive Director
Nationality: Australian
Qualifications:
Bachelor of Science Degree with Honours in Pathology and a Bachelor of
Science Degree with Honours in Veterinary Science from the University of
Sidney and numerous other diplomas and certificates within the agriculture,
ruminant nutrition, production and meat export industry. Post Graduate
Foundation in Veterinary Science and Postgraduate training in financial
management, modelling and financial analysis.
Experience:
Over 40 years of experience in Corporate Agribusiness, development banking,
mergers and acquisitions.
He previously, served in various positions in the agricultural production and
business management/banking space under many reputable and international
organisations including the IFC, European Bank for Reconstruction and
Development (EBRD) and Commonwealth Development Corporation (CDC
– now BII) among others.
External Appointments:
Currently Executive Chairman, of MHP SE – (MHPC) since 2017, an
Independent Non-Executive Director, of Zalar Morocco, 2014 – current
(Poultry & Grain Trading), AANC Pty Ltd (Australia) and Teralett Pty Ltd
(Australia).
Board of Directors (continued)
Annual Report 2024
36
Zambeef Products PLC
The Directors submit their report together with the audited annual financial statements for the year ended 30
September 2024, which disclose the state of affairs and performance of Zambeef Products PLC (the “Company”) and its
subsidiaries (together, “the Group”).
Principal activities
The principal activities of the Group are the production, processing, distribution and retailing of beef, chicken, pork,
milk, dairy products, eggs, edible oils, stock feed and flour. Additionally, the Group has large row cropping operations
(principally maize, soya beans and wheat), with approximately 14,572 Hectares of row crops under irrigation and 7,947
Hectares of rain-fed/dry-land crops available for planting each year. The Group further has retailing operations in
Nigeria and Ghana.
Significant events during the year
The Zambeef Group was restructured effective 1st October 2023 which is aimed at rationalising the Group’s
operations. The Group restructuring resulted in the amalgamation of Zambeef Retailing Limited, Masterpork Limited
and the Zamhatch Feedmill into the parent company. The Company is expected to benefit from the restructuring as
it will eliminate unnecessary complexities and duplications of its business processes across the six different entities,
which ultimately have the same key decision-makers, processes, ownership and senior executive team.
Share capital and beneficial owner(s)
The authorised share capital of the Company remained unchanged at 700,000,000 ordinary shares of K0.01. each. The
issued and fully paid-up share capital remained at 300,579,630 ordinary shares of K0.01 each.
The Group’s notable shareholding and beneficial ownership is represented as follows:
Name of shareholder
Number of shares
% of shareholding
British International Investment Plc (BII)
52,601,435
17.5%
African Life
40,070,567
13.3%
First Equity
24,987,323
8.5%
National Pension Scheme Authority (Zambia)
24,797,819
8.2%
Krohne Capital
18,979,405
6.3%
SBM Securities
15,925,191
5.3%
Sussex Trust
14,000,000
4.7%
Eastspring Investment
11,995,062
4.0%
Rhodora
8,639,374
2.9%
Red Fort partnership
8,175,000
2.7%
British International Investment Plc (BII) are also the holders of 100,057,658 convertible redeemable preference
shares. These shares have four voting rights for every five preference shares held resulting in BII having 34.8% of the
voting rights.
Results and dividend
The Group profit for the year of K180.1 million (2023: K120.2 million) has been added to retained earnings. The
Directors have not declared a dividend nor have any dividends been paid during the year. (2023: Nil)
Directors Report
For the year ended 30 September 2024
Annual Report 2024
37
Zambeef Products PLC
Directors Report (continued)
For the year ended 30 September 2024
Directors and remuneration
The Directors who held office during the year and to the date of this report were:
Name
Position
Patrick Wanjelani
Chairman
Appointed 19th June 2024
Faith Mukutu
Executive Director
M'boo Mumba
Executive Director
Resigned 17th July 2024
Patrick Kalifungwa
Executive Director
Appointed 1st August 2024
Jonathan Kirby
Non-Executive Director
Katebe Monica Musonda
Non-Executive Director
Pearson Gowero
Non-Executive Director
Roman Frenkel
Non-Executive Director
Resigned 5th April 2024
Muyangwa Muyangwa
Non-Executive Director
John Clifford Rich
Non-Executive Director
Michael Mundashi SC
Past Chairman
Deceased 26th March 2024
Interests register information
During the year, the Group officers (a Director, Company secretary or Executive Officer of a Company) made declarations
of interest in Company transactions and business as follows:
2024- shares
2023- shares
Name of Director
Direct
Indirect
Direct
Indirect
Katebe Monica Musonda
-
555
-
555
-
555
-
555
The interests’ register, as required by the Companies Act, 2017 of Zambia, containing particulars of the above stated
interests declared, is available for inspection at the Group’s registered office.
Average number of employees and remuneration
The total remuneration of employees during the year amounted to 818.9 million (2023: K718.2 million) and the average
number of employees were as follows:
Month
Average Number
Month
Average Number
October
8,346
April
8,826
November
8,178
May
8,175
December
8,095
June
8,319
January
8,374
July
8,431
February
8,576
August
8,116
March
8,582
September
7,954
The Group has policies and procedures to safeguard the occupational health, safety, and welfare of its employees.
Annual Report 2024
38
Zambeef Products PLC
Directors report (continued)
For the year ended 30 September 2024
Gifts and donations
During the year, the Group made donations of K2.2 million (2023: K3.6 million) to charitable organisations and events.
Research and development
The Group did not incur any costs on research and development during the year (2023: Nil).
Exports
During the year, the Group exported K105 million worth of goods from Zambia (2023: K75.8 million).
Property, plant and equipment
During the year, the Group purchased property, plant and equipment amounting to K815.3 million (2023: K817.3
million). In the opinion of the Directors, the carrying value of property, plant and equipment is not more than their
recoverable value.
Group Auditor and remuneration
The Auditor, PricewaterhouseCoopers Zambia, has indicated their willingness to continue in office and a resolution for
their reappointment will be proposed at the next annual general meeting.
The Auditor remuneration for the audit related to the financial year ended 30 September 2024 was K5.1 million
(2023: K4.1 million).
Signed on behalf of the Board of Directors,
_______________________
_______________________
Patrick Wanjelani
Faith Mukutu
Chairman
Director
Date: 9 December 2024
Annual Report 2024
39
Zambeef Products PLC
Statement of Director’s Responsibilities
The Companies Act, 2017 of Zambia requires the Directors to prepare annual financial statements for each financial year
that give a true and fair view of the state of affairs of the Group as at the end of the financial year and of its financial
performance. It also requires the Directors to ensure that the Group keeps proper accounting records that disclose,
with reasonable accuracy, the financial position of the Group. They are also responsible for safeguarding the assets of
the Group. The Directors are further required to ensure the Group adheres to the corporate governance principles or
practices contained in Sections 82 to 122 of Part VII of the Companies Act, 2017 of Zambia.
The Directors accept responsibility for the annual financial statements, which have been prepared using appropriate
accounting policies supported by reasonable estimates, in conformity with IFRS Accounting Standards as issued by the
International Accounting Standards Board (IASB) and the requirements of the Companies Act, 2017 of Zambia.
The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the
preparation of annual financial statements, and for such internal controls as the Directors determine necessary to enable
the preparation of annual financial statements that are free from material misstatement whether due to fraud or error.
The Directors are of the opinion that the annual financial statements set out on pages 46 to 119 give a true and fair view of
the state of the financial affairs of the Group and of its financial performance in accordance with IFRS Accounting Standards
as issued by the IASB and the requirements of the Companies Act, 2017 of Zambia. The Directors further report that they
have implemented and further adhered to the corporate governance principles or practices contained in Sections 82 to
122 of Part VII of the Companies Act, 2017 of Zambia.
Nothing has come to the attention of the Directors to indicate that the Group will not remain a going concern for at least
twelve months from the date of these annual financial statements.
Signed on behalf of the Board of Directors
_____________________
_______________________
Patrick Wanjelani
Faith Mukutu
Chairman
Director
Date: 9 December 2024
Annual Report 2024
40
Zambeef Products PLC
Independent auditor’s report
Report on the audit of the Group and Company annual financial statements
Our opinion
In our opinion, the Group and Company annual financial statements give a true and fair view of the Group and Company
financial position of Zambeef Products PLC (the “Company”) and its subsidiaries (together the “Group”) as at 30
September 2024, and of their Group and Company financial performance and their cash flows for the year then ended
in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and
the requirements of the Companies Act, 2017 of Zambia and the Securities Act, 2016 of Zambia.
What we have audited
Zambeef Products PLC’s Group and Company annual financial statements are set out on pages 46 to 119 and comprise:
¡ the Group and Company statement of financial position as at 30 September 2024;
¡ the Group and Company statement of profit or loss and other comprehensive income for the year then ended;
¡ the Group and Company statement of changes in equity for the year then ended;
¡ the Group and Company statement of cash flows for the year then ended; and
¡ the notes to the Group and Company annual financial statements, comprising material accounting policies and other
explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Group and Company annual
financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and Company in accordance with the International Code of Ethics for Professional
Accountants (including International Independence Standards) issued by the International Ethics Standards Board for
Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.
PricewaterhouseCoopers, PwC Place, Stand No. 2374, Thabo Mbeki Road, P.O. Box 30942, Lusaka, Zambia
T: +260 (0) 211 334000, F: +260 (0) 211 256474, www.pwc.com/zm
A list of Partners is available from the address above
Annual Report 2024
41
Zambeef Products PLC
Independent auditor’s report (continued)
Key audit matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Group and Company annual financial statements of the current period. These matters were addressed in the context
of our audit of the Group and Company annual financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the Key audit matter
Impairment of Goodwill
The Group tests whether goodwill has suffered any
impairment on an annual basis. The recoverable amount
of the cash-generating units (CGUs) is determined based
on value-in-use calculations which require the use of
assumptions. The calculations use cash flow projections
based on financial budgets approved by management
covering a five-year period.
Cash flows beyond the five-year period are extrapolated
using the estimated growth rates. These growth rates
are consistent with forecasts included in industry reports
specific to the industry in which each CGU operates.
Key assumptions used in the calculation include:
¡ estimating the budgeted gross margins to be generated in
the future;
¡ estimating the long-term growth rate; and;
¡ determining the discount rate to be used.
We determined this to be an area of focus for the audit on
account of the significance of the judgments applied by the
Directors in determining the recoverable amount of this
Cash Generating Unit (“CGU”).
Refer to Note 3 (Critical accounting estimates and
assumptions) and Note 14 (Goodwill).
• In assessing the reasonableness of the assumptions
applied by the Directors, we performed the
following procedures:
• agreed the cash flow forecasts to the most recently
approved budgets and assessed reliability of
budgeted numbers against historic performance;
• tested the appropriateness of assumptions used
in preparing the cash flow forecasts and company
budget;
• assessed the reasonableness of the projected
cash outflows arising on repairs and maintenance
expenditure against historic performance and
commitments;
• assessed the reasonableness of the long-term
growth rate against historical growth rate of the
business;
• assessed the reasonableness of the determined
discount rate to ensure it was representative of
the risks specific to the CGU by relying on work
performed by our experts;
• we evaluated the sensitivity of the Group’s
goodwill to fluctuations in the key assumptions
applied to ascertain the extent to which the key
inputs would have to change before goodwill
would be considered impaired; and
• we tested the mathematical accuracy of the
goodwill assessment performed and agreed
information used to the general ledger.
Annual Report 2024
42
Zambeef Products PLC
Independent auditor’s report (continued)
Key audit matter
How our audit addressed the Key audit matter
Valuation of Biological assets
i) Livestock
In measuring the fair value of livestock, various
management estimates and judgements are required.
Estimates and judgements in determining the fair value
of livestock relate to market prices, average weight and
quality of animals, and mortality rates. The livestock
grow at different rates and there can be a considerable
spread in the quality and weight of animals that affects
the price achieved. An average weight is assumed for the
animals based on a sample deemed to be representative
of the total population per breed and genetic merit.
ii) Standing Crop
For standing crops, the most significant estimate relates
to management’s assessment of anticipated yield per
hectare. This assessment considers historic yields,
climate conditions and prices.
Key assumptions used in the calculations include:
¡
estimating the average weight of animals;
¡
estimating the anticipated yields per hectare and
adjustment related to the crops rate of growth.
We determined this to be an area of focus for the audit
on account of the significance of the judgments applied
by the Directors in determining the fair value of the
biological assets.
Refer to Note 3 (Critical accounting estimates and
assumptions) and Note 17 (Biological assets).
In assessing the reasonableness of the assumptions
applied by the Directors, we performed the following
procedures:
¡ assessed the determined sample to ensure it was
representative of the animal population by category
and mix;
¡ observed the weighing of the animals based on
the sample selected and re-calculated the average
weight;
¡ obtained the market prices from suppliers as at year
end used in the valuation process;
¡ assessed the reasonableness of anticipated yields
per hectare against the subsequent yields based on
the actual yields achieved
¡ we evaluated the sensitivity of the biological asset
values to fluctuations in the key assumptions applied
to ascertain the extent to which the key inputs would
have on the balances as at year end;
¡ we tested the mathematical accuracy of the
assessment performed and agreed information used
to the general ledger.
Other information
The Directors are responsible for the other information. The other information comprises the Annual Report but does
not include the Group and Company annual financial statements and our auditor’s report thereon.
Our opinion on the Group and Company annual financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the Group and Company annual financial statements, our responsibility is to read the
other information identified above and, in doing so, consider whether the other information is materially inconsistent
with the Group and Company annual financial statements or our knowledge obtained in the audit, or otherwise appears
to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Annual Report 2024
43
Zambeef Products PLC
Independent auditor’s report (continued)
Responsibilities of the Directors for the Group and
Company annual financial statements
The Directors are responsible for the preparation of
the Group and Company annual financial statements
that give a true and fair view in accordance with IFRS
Accounting Standards as issued by the IASB and the
requirements of the Companies Act, 2017 of Zambia and
the Securities Act, 2016 of Zambia, and for such internal
control as the Directors determine is necessary to enable
the preparation of Group and Company annual financial
statements that are free from material misstatement,
whether due to fraud or error.
In preparing the Group and Company annual financial
statements, the Directors are responsible for assessing
the Group and Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate
the Group and Company or to cease operations, or have
no realistic alternative but to do so.
The Directors are responsible for overseeing the Group’s
and Company’s financial reporting process.
Auditor’s responsibilities for the audit of the Group and
Company annual financial statements
Our objectives are to obtain reasonable assurance
about whether the Group and Company annual
financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with
ISAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
Group and Company annual financial statements.
As part of an audit in accordance with ISAs, we exercise
professional judgement and maintain professional
scepticism throughout the audit. We also:
¡ Identify and assess the risks of material misstatement
of the Group and Company annual financial
statements, whether due to fraud or error, design
and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
¡ Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the Group’s internal control.
¡ Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Directors
¡ Conclude on the appropriateness of the Directors’
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or
conditions that may cast significant doubt on the
Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to
the related disclosures in the Group and Company
annual financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events
or conditions may cause the Group to cease to
continue as a going concern.
¡ Evaluate the overall presentation, structure and
content of the Group and Company annual financial
statements, including the disclosures, and whether
the Group and Company annual financial statements
represent the underlying transactions and events in a
manner that achieves fair presentation.
¡ Obtain
sufficient
appropriate
audit
evidence
regarding the financial information of the entities or
business activities within the Group to express an
opinion on the Group and Company annual financial
statements. We are responsible for the direction,
supervision and performance of the Group audit. We
remain solely responsible for our audit opinion.
Annual Report 2024
44
Zambeef Products PLC
Independent auditor’s report (continued)
We communicate with the Directors regarding, among
other matters, the planned scope and timing of the audit
and significant audit findings, including any significant
deficiencies in internal control that we identify during
our audit.
We also provide the Board of Directors with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with
them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, actions taken to eliminate threats or
safeguards applied.
From the matters communicated with the Board of
Directors, we determine those matters that were of
most significance in the audit of the Group and Company
annual financial statements of the current period and
are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that
a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.
The Companies Act, 2017 of Zambia
The Companies Act, 2017 of Zambia requires that in
carrying out our audit of Zambeef Products PLC, we
report on whether:
i. as required by section 259 (3)(a), there is a relationship,
interest or debt which, ourselves, as the Group and
Company Auditor, have in the Group and Company;
ii. as required by section 259 (3)(b), there are serious
breaches by the Group and Company’s Directors,
of corporate governance principles or practices
contained in Sections 82 to 122 of Part VII of the
Companies Act, 2017of Zambia; and
iii. in accordance with section 250 (2), as regards loans
made to a Group or Company Officer (a director,
Group or Company secretary or executive officer of
the group or company), the Group or Company does
not state the:
¡ particulars of any relevant loan made during the
financial year to which the accounts apply, including
any loan which was repaid during that year; or
¡ amount of any relevant loan, whenever made, which
remained outstanding at the end of the financial
year.
In respect of the foregoing requirements, we have no
matters to report.
The Securities Act, 2016 of Zambia
Part III, Rule 18 of the Securities (accounting and financial
reporting requirements) Rules of the Securities Act,
2016 of Zambia, require that in carrying out our audit of
Zambeef Products PLC we report on whether:
i) the Group and Company annual financial statements of
the Group have been properly prepared in accordance
with Securities and Exchange Commission rules;
ii) the Group has, throughout the financial year, kept
proper accounting records in accordance with the
requirements of Securities and Exchange Commission
rules;
iii) the Group and Company statement of financial
position and Group and Company statement of
comprehensive income are in agreement with the
Group’s accounting records; and
iv) we have obtained all the information and explanations
which, to the best of our knowledge and belief, are
necessary for the purposes of our audit.
In respect of the foregoing requirements, we have no
matters to report.
The engagement partner on the audit resulting in this
independent auditor’s report is Andrew Chibuye.
PricewaterhouseCoopers
Chartered Accountants
Lusaka
9 December 2024
Andrew Chibuye
Practicing Certificate Number: AUD/F002378
Partner signing on behalf of the firm
Annual Report 2024
45
Zambeef Products PLC
Financial Statements
30 September 2024
Annual Report 2024
46
Zambeef Products PLC
Statement of Profit or Loss and other Comprehensive Income
Notes
Group
Company
Continuing operations
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Revenue from contracts with customers
6
7,315,845
6,046,157
6,939,511
3,384,408
Change in fair value of biological assets
17(i)
1,005,832
643,197
899,062
568,975
Cost of sales of goods
8
(5,846,559)
(4,846,092)
(5,826,756)
(3,046,883)
Gross profit
2,475,118
1,843,262
2,011,817
906,500
Other (expenses)/income
7
(61,132)
(46,419)
(74,116)
(18,064)
Net impairment losses on financial assets
4(b)
(1,264)
(2,713)
1,802
(1,768)
Impairment of investment in associate
16(ii)
(34,370)
-
(34,370)
-
Distribution expenses
8
(208,395)
(96,287)
(190,771)
(1,302)
Administrative expenses
8
(1,682,765)
(1,336,486)
(1,431,766)
(741,469)
Operating profit
487,192
361,357
282,596
143,897
Net Finance costs and income
9
(294,531)
(155,089)
(294,188)
(123,921)
Share of loss from equity investment
16(ii)
-
(2,595)
-
(2,595)
Profit/(loss) before income tax
192,661
203,673
(11,592)
17,381
Income tax expense – continuing operations
11
(12,565)
(72,851)
18,228
(15,704)
Profit from continuing operations
180,096
130,822
6,636
1,677
Loss from discontinued operations after tax
21(i)
-
(10,604)
-
(10,604)
Profit/(loss) from continued and discontinued
operations
180,096
120,218
6,636
(8,927)
Profit/(loss) attributable to:
Owners of Zambeef Products PLC
179,840
118,612
6,636
(8,927)
Non-controlling interests
256
1,606
-
-
180,096
120,218
6,636
(8,927)
Other comprehensive income:
Items that maybe reclassified to profit or loss
Translation differences - foreign operations
23
(35,821)
(40,617)
-
-
Items not reclassified to profit or loss
Revaluation surplus
24
5,734
1,003,412
-
977,426
Actuarial remeasurement losses
27(i)
(2,523)
(768)
(2,523)
(425)
Deferred income tax
26
133,328
(98,516)
128,455
(97,751)
Other comprehensive income for the year
100,718
863,511
125,932
879,250
Total comprehensive income for the year
280,814
983,729
132,568
870,323
Annual Report 2024
47
Zambeef Products PLC
Statement of Profit or Loss and Other Comprehensive Income (continued)
Notes
Group
Company
2024
2023
2024
2023
Total comprehensive income for the year is attrib-
utable to:
Owners of Zambeef Products Plc
286,575
990,425
132,568
870,323
Non-controlling interests
(5,761)
(6,696)
-
-
280,814
983,729
132,568
870,323
Basic earnings per share
Ngwee
Ngwee
Continuing operations
31
59.83
42.99
Discontinued operations
31
-
(3.53)
Total basic earnings per share
59.83
39.46
Diluted earnings per share
Continuing operations
31
44.89
32.25
Discontinued operations
31
-
(2.65)
Total diluted earnings per share
44.89
29.60
The notes on pages 53 to 119 form an integral part of these annual financial statements
Annual Report 2024
48
Zambeef Products PLC
Consolidated Statement of Financial Position
30-Sept-24
30-Sept-23
ASSETS
Notes
K’000
K’000
Non-current assets
Property, plant and equipment
12
5,577,265
4,818,533
Goodwill
14
25,015
25,015
Investment in associate
16 (ii)
-
34,370
Biological assets
17(i)
143,972
123,359
5,746,252
5,001,277
Current assets
Biological assets
17(i)
296,923
285,039
Inventories
18
2,088,778
1,656,487
Trade and other receivables
19
346,130
332,703
Cash and cash equivalents
20
334,415
271,222
Current assets excl assets classified as held for sale
3,066,246
2,545,451
Assets classified as held for sale
21(iii)
-
157,640
Total current assets
3,066,246
2,703,091
Total assets
8,812,498
7,704,368
EQUITY
Share capital
22
3,006
3,006
Share premium
22
1,125,012
1,125,012
Preference share capital
22
1,000
1,000
Foreign currency translation reserve
23
633,440
660,390
Revaluation reserve
24
2,054,090
1,964,087
Retained earnings
1,156,637
930,261
Attributable to owners of parent entity
4,973,185
4,683,756
Non-controlling interests (NCI)
(15,245)
(6,630)
4,957,940
4,677,126
LIABILITIES
Non-current liabilities
Lease liabilities
13(a)
13,350
15,622
Borrowings
25
856,362
687,679
Deferred income tax
26
154,586
302,017
Defined benefit obligations
27(i)
1,835
1,631
1,026,133
1,006,949
Current liabilities
Lease liabilities
13(a)
8,578
6,448
Borrowings
25
1,525,671
972,827
Trade and other payables
28
917,674
834,191
Contract liabilities
29
357,999
164,063
Current income tax
11(ii)
18,503
42,764
2,828,425
2,020,293
Total equity and liabilities
8,812,498
7,704,368
The annual financial statements on pages 46 to 119 were approved for issue by the board of directors on
9 December 2024 and signed on its behalf by:
________________________________________
________________________________________
Patrick Wanjelani
Faith Mukutu
Chairman
Chief Executive Officer
The notes on pages 53 to 119 form an integral part of these annual financial statements.
Annual Report 2024
49
Zambeef Products PLC
Company Statement of Financial Position
30-Sept-24
30-Sept-23
ASSETS
Notes
K’000
K’000
Non-current assets
Property, plant and equipment
12
4,791,182
3,595,380
Goodwill
14
15,699
-
Investment in subsidiaries
15
77,388
104,020
Investment in associate
16(ii)
-
34,370
Biological assets
17(i)
143,972
123,359
5,028,241
3,857,129
Current assets
Biological assets
17(i)
218,808
232,396
Inventories
18
1,929,536
1,104,477
Trade and other receivables
19
472,287
1,277,442
Cash and cash equivalents
20
292,763
209,854
Current assets excl assets classified as held for sale
2,913,394
2,824,169
Assets classified as held for sale
21(iii)
-
157,640
Total current assets
2,913,394
2,981,809
Total assets
7,941,635
6,838,938
EQUITY
Share capital
22
3,006
3,006
Share premium
22
1,125,012
1,125,012
Preference share capital
22
1,000
1,000
Foreign currency translation reserve
23
687,048
687,048
Revaluation reserve
24
1,847,683
1,561,799
Retained earnings
226,851
760,468
3,890,600
4,138,333
LIABILITIES
Non-current liabilities
Lease liabilities
13(a)
13,350
7,403
Borrowings
25
856,362
687,679
Deferred income tax
26
108,264
220,829
Defined benefit obligations
27(i)
1,835
902
979,811
916,813
Current liabilities
Lease liabilities
13(a)
8,578
6,288
Borrowings
25
1,525,671
783,148
Trade and other payables
28
1,172,966
886,026
Contract liabilities
29
356,672
94,976
Current income tax
11 (ii)
7,337
13,354
3,071,224
1,783,792
Total equity and liabilities
7,941,635
6,838,938
The annual financial statements on pages 46 to 119 were approved for issue by the board of directors on 9 December 2024 and signed
on its behalf by:
________________________________________
________________________________________
Patrick Wanjelani
Faith Mukutu
Chairman
Chief Executive Officer
The notes on pages 53 to 119 form an integral part of these annual financial statements.
Annual Report 2024
50
Zambeef Products PLC
Consolidated Statement of Changes in Equity
Share
Capital
Share
premium
Preference
share
capital
Foreign
currency
translation
reserve
Revaluation
reserve
Retained
earnings
Total
attributable
to owners
of parent
entity
Non-
controlling
interests
Total
Year ended 30 September 2023
K’000
K’000
K’000
K’000
K’000
K’000
K’000
K’000
At start of year
3,006
1,125,012
1,000
692,705
1,113,119
758,489
3,693,331
66
3,693,397
Profit for the year
-
-
-
-
-
118,612
118,612
1,606
120,218
Other comprehensive income:
Revaluation surplus
-
-
-
-
1,003,412
-
1,003,412
-
1,003,412
Transfer of excess depreciation
-
-
-
-
(53,928)
53,928
-
-
-
Actuarial remeasurement losses
-
-
-
-
-
(768)
(768)
-
(768)
Deferred income tax (Note 26)
-
-
-
-
(98,516)
-
(98,516)
-
(98,516)
Translation differences (Note 23)
-
-
-
(32,315)
-
-
(32,315)
(8,302)
(40,617)
-
-
-
(32,315)
850,968
53,160
871,813
(8,302)
863,511
Total comprehensive income for
the year
-
-
-
(32,315)
850,968
171,772
990,425
(6,696)
983,729
At end of year
3,006
1,125,012
1,000
660,390
1,964,087
930,261
4,683,756
(6,630)
4,677,126
Year ended 30 September 2024
At start of year
3,006
1,125,012
1,000
660,390
1,964,087
930,261
4,683,756
(6,630)
4,677,126
Profit for the year
-
-
-
-
-
179,840
179,840
256
180,096
Other comprehensive income:
Revaluation surplus
-
-
-
-
5,734
-
5,734
-
5,734
Transfer of excess depreciation
-
-
-
-
(49,059)
49,059
-
-
-
Actuarial remeasurement losses
-
-
-
-
-
(2,523)
(2,523)
-
(2,523)
Deferred income tax (Note 26)
-
-
-
-
133,328
-
133,328
-
133,328
Translation differences (Note 23)
-
-
-
(26,950)
-
-
(26,950)
(8,871)
(35,821)
-
-
-
(26,950)
90,003
46,536
109,589
(8,871)
100,718
Total comprehensive income for
the year
-
-
-
(26,950)
90,003
226,376
289,429
(8,615)
280,814
At year end
3,006
1,125,012
1,000
633,440
2,054,090 1,156,637
4,973,185
(15,245)
4,957,940
The notes on pages 53 to 119 are an integral part of these annual financial statements.
Annual Report 2024
51
Zambeef Products PLC
Company Statement of Changes in Equity
Share
Capital
Share
premium
Preference
share capital
Foreign
currency
translation
reserve
Revaluation
reserve
Retained
earnings
Total
Year ended 30 September 2023
K’000
K’000
K’000
K’000
K’000
K’000
At start of year
3,006
1,125,012
1,000
687,048
712,279
739,665
3,268,010
Loss for the year
-
-
-
-
-
(8,927)
(8,927)
Other comprehensive income:
Revaluation reserve
-
-
-
-
977,426
-
977,426
Transfer of excess depreciation
-
-
-
-
(30,155)
30,155
-
Actuarial remeasurement losses
-
-
-
-
-
(425)
(425)
Deferred income tax (Note 26)
-
-
-
-
(97,751)
-
(97,751)
-
-
-
-
849,520
29,730
879,250
Total comprehensive income for the
year
-
-
-
-
849,520
20,803
870,323
At end of year
3,006
1,125,012
1,000
687,048
1,561,799
760,468
4,138,333
Year ended 30 September 2024
At start of year
3,006
1,125,012
1,000
687,048
1,561,799
760,468
4,138,333
Reserves from business combination
(Note 35)
197,599
(577,900)
(380,301)
Loss for the year
-
-
-
-
-
6,636
6,636
Other comprehensive income:
Transfer of excess depreciation
-
-
-
-
(40,170)
40,170
-
Actuarial remeasurement losses
-
-
-
-
-
(2,523)
(2,523)
Deferred income tax (Note 26)
-
-
-
-
128,455
-
128,455
-
-
-
-
88,285
37,647
125,932
Total comprehensive income for the
year
-
-
-
-
88,285
44,283
132,568
At year end
3,006
1,125,012
1,000
687,048
1,847,683
226,851
3,890,600
The notes on pages 53 to 119 are an integral part of these annual financial statements.
Annual Report 2024
52
Zambeef Products PLC
Statement of cash flows
Group
Company
2024
2023
2024
2023
Notes
K’000
K’000
K’000
K’000
Cash generated from/(used in) operations
30(i)
556,222
404,081
246,182
28,330
Interest paid on borrowings
30(ii)
(211,132)
(44,646)
(211,132)
(44,646)
Interest paid on bank overdrafts
30(ii)
(118,669)
(87,323)
(118,669)
(57,471)
Interest paid on leases
30(ii)
(3,437)
(2,676)
(3,322)
(1,312)
Benefits paid
27(i)
(2,597)
(3,422)
(2,597)
(238)
Income tax paid
11(ii)
(49,036)
(88,323)
(28,209)
(34,233)
Net cash inflow/(outflow) from operating
activities
171,351
177,691
(117,747)
(109,570)
Cash flows from investing activities
Purchase of property, plant and equipment
12
(815,281)
(817,295)
(538,147)
(504,998)
Proceeds from disposal assets
9,309
4,025
8,760
6,165
Net cash outflow from investing activities
(805,972)
(813,270)
(529,387)
(498,833)
Cash flows from financing activities
Proceeds from borrowings
30(ii)
1,369,057
916,396
1,369,057
916,396
Principal repayments of borrowings
30(ii)
(739,519)
(526,257)
(739,519)
(526,257)
Principal elements of lease payments
30(ii)
(7,441)
(7,319)
(7,441)
(6,016)
Net cash inflow from financing activities
622,097
382,820
622,097
384,123
Net decrease for the year
(12,524)
(252,759)
(25,037)
(224,280)
Movement in cash and cash equivalents
At start of year
(380,467)
(127,708)
(252,156)
(27,876)
Net decrease
(12,524)
(252,759)
(25,037)
(224,280)
Effects of exchange differences
5,126
-
11,898
-
Balances from business combination
35
-
-
(164,222)
-
At year end
20
(387,865)
(380,467)
(429,517)
(252,156)
The notes on pages 53 to 119 are an integral part of these annual financial statements.
Annual Report 2024
53
Zambeef Products PLC
Notes to Annual Financial Statements
For the year ended 30 September 2024
1
General information
Zambeef Products PLC (the “Company”) is incorporated in Zambia under the Zambia Companies Act as a public limited
company, listed on the Lusaka Stock Exchange and is domiciled in Zambia. The Company and its subsidiaries (together “the
Group”) is one of the largest agri-businesses in Zambia. The Group is principally involved in the production, processing,
distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, edible oils, stock feed and flour.
The Group also has large row cropping operations (principally maize, soya beans and wheat), with approximately 14,530
Hectares of row crops under irrigation and 7,924 Hectares of rain-fed/dry-land crops available for planting each year. The
Group also has operations in West Africa in Nigeria and Ghana.
The Group’s registered office is:
Plot 4970, Manda Road
Industrial Area
Lusaka
Zambia
2
Summary of material accounting policies
This note provides a list of the material accounting policies adopted in the preparation of these annual financial statements
to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied
to all the years presented, unless otherwise stated. The annual financial statements are for the Group consisting of Zambeef
Products PLC and its subsidiaries.
a)
Basis of preparation
Compliance with IFRS Accounting Standards
The annual financial statements of the Group have been prepared in accordance with IFRS Accounting Standards and
interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS
Accounting Standards. The predecessor accounting method was applied to the acquisition of assets and liabilities of
Zambeef Products PLC’s subsidiaries as the transaction was under common control. The annual financial statements
comply with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).
Historical cost convention
The annual financial statements have been prepared on historical cost basis, except where otherwise stated in the
accounting policies below. The annual financial statements are presented in Zambia Kwacha (K). Where necessary,
comparative figures have been adjusted to conform to changes in presentation in the current period.
In accordance with the Companies Act, 2017 of Zambia, the annual financial statements for the year ended 30
September 2024 have been approved for issue by the Directors.
The preparation of annual financial statements in conformity with IFRS Accounting Standards requires the use of
estimates and assumptions. It also requires management to exercise its judgement in the process of applying the
Group’s accounting policies. The areas involving higher degree of judgement or complexity, or where assumptions and
estimates are significant to the annual financial statements are disclosed in Note 3.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
54
Zambeef Products PLC
2
Summary of material accounting policies (continued)
i)
New and amended standards adopted by the Group
Number
Effective date
Executive summary
Amendments to IAS 12, ‘Income
Taxes’ - Deferred Tax related to
Assets and Liabilities arising from
a Single Transaction
Annual periods beginning on or
after 1 January 2023.
(Published May 2021)
The amendments require
companies to recognise deferred
tax on transactions that, on initial
recognition, give rise to equal
amounts of taxable and deductible
temporary differences.
Narrow scope amendments to
IAS 1 ‘Presentation of Financial
Statements’, Practice statement
2 and IAS 8 ‘Accounting Policies,
Changes in Accounting Estimates
and Errors’
Annual periods beginning on or
after 1 January 2023.
(Published February 2021)
The amendments aim to improve
accounting policy disclosures
and to help users of the financial
statements to distinguish changes
in accounting policies from
changes in accounting estimates.
Amendments to IAS 12, ‘Income
taxes’ - International Tax Reform—
Pillar Two Model Rules
The deferred tax exemption and
disclosure of the fact that the
exception has been applied, is
effective immediately. The other
disclosure requirements are
effective annual periods beginning
on or after 1 January 2023.
(Published May 2023)
These amendments give
companies temporary relief from
accounting for deferred taxes
arising from the Organisation
for Economic Co-operation
and Development’s (OECD)
international tax reform. The
amendments also introduce
targeted disclosure requirements
for affected companies.
The new accounting standards effective for reporting periods beginning on or after 1 January 2023 did not have any
impact on the Company’s accounting policies and did not require retrospective adjustments to the annual financial
statements.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
55
Zambeef Products PLC
2
Summary of material accounting policies (continued)
ii)
New and amended standards not yet adopted by the Group
Certain new accounting standards and interpretations have been published that are not mandatory for 30 September
2024 reporting periods and have not been early adopted by the Group. These standards are not expected to have a
material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
Number
Effective date
Executive summary
Amendments to IAS 1,
‘Presentation of Financial
Statements’ - Non-current
liabilities with covenants
Annual periods beginning on or
after 1 January 2024
(Published January 2020 and
November 2022)
These amendments clarify how
conditions with which an entity
must comply within twelve
months after the reporting period
affect the classification of a
liability. The amendments also aim
to improve information an entity
provides related to liabilities
subject to these conditions.
Amendment to IFRS 16, ‘Leases’ -
sale and leaseback
Annual periods beginning on or
after 1 January 2024
(Published September 2022)
These amendments include
requirements for sale and
leaseback transactions in IFRS 16
to explain how an entity accounts
for a sale and leaseback after the
date of the transaction. Sale and
leaseback transactions where
some or all the lease payments are
variable lease payments that do
not depend on an index or rate are
most likely to be impacted.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
56
Zambeef Products PLC
2
Summary of material accounting policies (continued)
ii)
New and amended standards not yet adopted by the Group (continued)
Amendments to Supplier
Finance Arrangements
(IAS 7 ‘Statement of Cash
Flows’ and IFRS 7 ‘Financial
Instruments: Disclosure’)
Annual periods
beginning on or
after 1 January
2024
(Published May
2023)
These amendments require disclosures to enhance the
transparency of supplier finance arrangements and
their effects on a company’s liabilities, cash flows and
exposure to liquidity risk. The disclosure requirements
are the IASB’s response to investors’ concerns that
some companies’ supplier finance arrangements are
not sufficiently visible, hindering investors’ analysis.
Amendments to IAS 21,
‘The Effects of Changes in
Foreign Exchange Rates’
- Lack of Exchangeability
(Amendments to IAS 21)
Annual periods
beginning on or
after 1 January
2025
(Published August
2023)
An entity is impacted by the amendments when it has
a transaction or an operation in a foreign currency
that is not exchangeable into another currency at a
measurement date for a specified purpose. A currency
is exchangeable when there is an ability to obtain the
other currency (with a normal administrative delay),
and the transaction would take place through a market
or exchange mechanism that creates enforceable
rights and obligations.
Amendment to IFRS 9,
“Financial Instruments”
and IFRS 7, “Financial
Instruments: Disclosures”
- Classification and
Measurement of Financial
Instruments
Annual periods
beginning on or
after 1 January
2026
(Published May
2024)
These amendments:
x
clarify the requirements for the timing of
recognition and derecognition of some
financial assets and liabilities, with a new
exception for some financial liabilities settled
through an electronic cash transfer system;
x
clarify and add further guidance for assessing
whether a financial asset meets the solely
payments of principal and interest (SPPI)
criterion;
x
add new disclosures for certain instruments
with contractual terms that can change
cash flows (such as some instruments
with features linked to the achievement of
environment, social and governance (ESG)
targets); and
x
make updates to the disclosures for equity
instruments designated at Fair Value through
Other Comprehensive Income (FVOCI).
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
57
Zambeef Products PLC
2
Summary of material accounting policies (continued)
iii)
New and amended standards not yet adopted by the Group (continued)
IFRS 18, ‘Presentation
and Disclosure in
Financial Statements’
Annual periods
beginning on or
after 1 January
2027
(Published April
2024)
The objective of IFRS 18 is to set out requirements for
the presentation and disclosure of information in general
purpose financial statements (financial statements) to help
ensure they provide relevant information that faithfully
represents an entity’s assets, liabilities, equity, income and
expenses.
IFRS 18 replaces IAS 1 ‘Presentation of Financial
Statements’ and focuses on updates to the statement
of profit or loss with a focus on the structure of the
statement of profit or loss; required disclosures in the
financial statements for certain profit or loss performance
measures that are reported outside an entity’s financial
statements (that is, management-defined performance
measures); and enhanced principles on aggregation
and disaggregation which apply to the primary financial
statements and notes in general.
Many of the other existing principles in IAS 1 are
retained, with limited changes. IFRS 18 will not impact
the recognition or measurement of items in the financial
statements, but it might change what an entity reports as
its ‘operating profit or loss’.
IFRS 19, ‘Subsidiaries
without Public
Accountability’
Annual periods
beginning on or
after 1 January
2027
(Published May
2024)
The objective of IFRS 19 is to provide reduced disclosure
requirements for subsidiaries, with a parent that applies
the Accounting Standards in its consolidated financial
statements.
IFRS 19 is a voluntary Accounting Standard that eligible
subsidiaries can apply when preparing their own
consolidated, separate or individual financial statements.
a)
Principles of consolidation and equity accounting
i)
Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls
an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are
fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the
date that control ceases. The acquisition method of accounting is used to account for business combinations by
the Group
Inter-company transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the statement of profit
or loss and other comprehensive income, statement of changes in equity and statement of financial position
respectively.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
58
Zambeef Products PLC
2
Summary of material accounting policies (continued)
b)
Principles of consolidation and equity accounting (continued)
ii)
Associates
Associates are all entities over which the Group has significant influence but not control or joint control. This is
generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates
are accounted for using the equity method of accounting after initially being recognised at cost.
iii)
Equity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter
to recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the
Group’s share of movements in other comprehensive income of the investee in other comprehensive income.
Dividends received or receivable from associates are recognised as a reduction in the carrying amount of the
investment.
Where the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the
entity, including any other unsecured long-term receivables, the Group does not recognise further losses,
unless it has incurred obligations or made payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the
Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have
been changed where necessary to ensure consistency with the policies adopted by the Group.
The carrying amount of equity-accounted investments is tested annually for impairment, or more frequently if
events or changes in circumstances indicate that they might be impaired.
iv)
Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions
with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying
amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary.
Any difference between the amount of the adjustment to non-controlling interests and any consideration paid
or received is recognised in a separate reserve within equity attributable to owners of Zambeef Products PLC.
When the Group ceases to consolidate or equity account for an investment because of a loss of control or
significant influence, any retained interest in the entity is remeasured to its fair value, with the change in
carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the
purposes of subsequently accounting for the retained interest as an associate or financial asset. In addition,
any amounts previously recognised in other comprehensive income in respect of that entity are accounted for
as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously
recognised in other comprehensive income are reclassified to profit or loss
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate
share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss
where appropriate.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
59
Zambeef Products PLC
2
Summary of material accounting policies (continued)
c)
Business combinations
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises
the:
•
fair values of the assets transferred;
•
liabilities incurred to the former owners of the acquired business;
•
equity interests issued by the Group;
•
fair value of any asset or liability resulting from a contingent consideration arrangement, and;
•
fair value of any pre-existing equity interest in the subsidiary
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with
limited exceptions, measured initially at their fair values at the acquisition date. The Group recognises any non-
controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-
controlling interest’s proportionate share of the acquired entity’s net identifiable assets.
Acquisition-related costs are expensed as incurred.
The excess of the:
•
consideration transferred,
•
amount of any non-controlling interest in the acquired entity, and
•
acquisition-date fair value of any previous equity interest in the acquired entityover the fair value of the net
identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net
identifiable assets of the business acquired, the difference is recognised directly in profit or loss as a bargain
purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to
their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being
the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and
conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability
are subsequently remeasured to fair value, with changes in fair value recognised in profit or loss. If the business
combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest
in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement
are recognised in profit or loss.
The predecessor accounting method is applied to the acquisition where there is a common control transaction.
Consequently, the Company takes over the carrying value of the assets and liabilities of the subsidiaries at nil
consideration.
d)
Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in
use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-
generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible
reversal of the impairment at the end of each reporting period.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
60
Zambeef Products PLC
2
Summary of material accounting policies (continued)
e)
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM). The Board of Zambeef Products PLC has appointed a strategic steering committee which
assesses the financial performance and position of the Group and makes strategic decisions. The steering committee,
which has been identified as being the CODM, consists of the Chief Executive Officer and the Chief Financial Officer.
f)
Foreign currency translation
i)
Functional and presentation currency
Items included in the annual financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated
financial statements are presented in Zambian Kwacha (K), which is Zambeef Products PLC’s functional and
presentation currency.
ii)
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from
the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates,
are recognised in profit or loss. They are deferred in equity if they are attributable to part of the net investment
in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss,
within finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss
on a net basis within other income or other expenses.
iii)
Group companies
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the
presentation currency as follows:
•
assets and liabilities for each statement of financial position presented are translated at the closing
rate at the date of that statement of financial position;
•
income and expenses for each statement of profit or loss and statement of comprehensive income are
translated at average exchange rates (unless this is not a reasonable approximation of the cumulative
effect of the rates prevailing on the transaction dates, in which case income and expenses are
translated at the dates of the transactions), and;
•
all resulting exchange differences are recognised in other comprehensive income
On consolidation, exchange differences arising from the translation of any net investment in foreign
entities, and of borrowings are recognised in other comprehensive income. When a foreign operation
is sold or any borrowings forming part of the net investment are repaid, the associated exchange
differences are reclassified to profit or loss, as part of the gain or loss on sale.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
61
Zambeef Products PLC
2
Summary of material accounting policies (continued)
g)
Revenue recognition
The Group’s contracts with customers exist in various forms and typically take the form of signed agreements, approved
customer purchase orders, invoices to customers, terms and conditions documents and customary business practices,
all of which have commercial substance and impact the Company’s future cash flows. Revenue is recognised at point in
time upon delivery of products and customer acceptance. A receivable is recognised when the goods are delivered as
this is the point in time that the consideration is unconditional because only the passage of time is required before the
payment is due.
Retailing and food production
The cold food chain products are mainly beef, chicken, pork, fish, milk and dairy products. These products are sold
through the Group’s retail network, most of which is through cash sales. The credit sales are only invoiced when the
products are delivered to the customer or when the customer collects the products. Revenue is recognised at point in
time when performance obligations are satisfied by delivering the products.
Stockfeed is sold through the Group’s retail network and on contract to certain customers. The sales through the retail
network are cash sales. The credit sales are invoiced when the customer takes delivery of the stock feed. Revenue is
recognised at point in time when performance obligations are satisfied by delivering the stockfeed.
Revenue for the sale of day-old chicks is generated through direct sales to customers through the Zambeef outlets
and through agents. Customers and agents make advance payments before getting delivery of the chicks. Revenue
is recognised when the customer collects the chicks and is invoiced. A contract liability is recognised for all amounts
received in advance for which the performance obligation of transferring the goods to the customer has not been met.
Cropping and milling
Revenue from cropping is from the sale of wheat, soya and maize grain. The price of the grain is agreed as per the
contract with the customers and the customers are only invoiced when customer takes delivery of the grain. Revenue is
recognised at point in time when performance obligations are satisfied by delivering the grain.
The flour mill and bread are sold through the Group’s retail network and are mainly for cash sales. Revenue is recognised
at point in time upon acceptance of products by the customer.
Financing components
The Group does not expect to have any contracts where the period between the transfer of the promised goods or
services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust
any of the transaction prices for the time value of money.
h)
Interest income
Interest income is presented as finance income where it is earned from financial assets that are held for cash management
purposes. Any other interest income is included in other income. Interest income is recognised using the effective
interest method.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
62
Zambeef Products PLC
2
Summary of material accounting policies (continued)
i)
Property, plant and equipment
All items of property, plant and equipment are initially recognised at cost and subsequently shown at fair value, based
on valuations by external independent valuers, less accumulated depreciation. Valuations are performed with sufficient
regularity to ensure that the fair value does not differ materially from its carrying amount. Any accumulated depreciation
at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to
the revalued amount of the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the group and the cost of the
item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised
when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they
are incurred.
Increases in the carrying amounts arising on revaluation of property, plant and equipment are recognised, net of tax,
in other comprehensive income and accumulated in reserves in shareholders’ equity. To the extent that the increase
reverses a decrease previously recognised in profit or loss, the increase is first recognised in profit or loss. Decreases
that reverse previous increases of the same asset are first recognised in other comprehensive income to the extent of
the remaining surplus attributable to the asset; all other decreases are charged to profit or loss. Each year, the difference
between depreciation based on the revalued carrying amount of the asset charged to profit or loss and depreciation
based on the asset’s original cost, net of tax, is reclassified from the property, plant and equipment revaluation surplus to
retained earnings
Depreciation is calculated using the straight-line method to allocate the cost or revalued amounts of the assets, net of
their residual values, over their estimated useful lives as follows:
Buildings
2%
Plant & machinery
10%
Motor vehicles
20%
Furniture and equipment
10%
Capital work in progress, which represents additions to property, plant and equipment that have not yet been brought
into use, is not depreciated. Additions are transferred into the above depreciable asset classes once they are brought
into use. Capital work in progress is measured at cost less impairments.
The asset’s residual values and useful lives of the assets are reviewed, and adjusted if appropriate, at the end of each
reporting period.
Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs
to sell, and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit
or loss. When revalued assets are sold, it is Group policy to transfer any amounts included in other reserves in respect of
those assets to retained earnings.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
63
Zambeef Products PLC
2
Summary of material accounting policies (continued)
j)
Leases
The following sets out the Group’s lease accounting policy for all leases with the exception of leases with low-value and
short term of less than 12 months for which the Group has taken the exemption under the standard and are expensed
to profit or loss as incurred.
i)
Right of use assets
The Group recognises right of use assets at the commencement date of the lease (i.e., the date the underlying asset
is available for use under the contract). Leasehold land is initially recognised at cost and subsequently shown at fair
value, based on valuations by external independent valuers, less accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities.
All other right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities.
The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement date (which do not form part of the lease liability value at the
commencement date).
Right of use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease
term.
Buildings
10 years
Lease term
Plant & machinery
10 years
Lease term
Motor vehicles
4 years
Lease term
The right-of-use assets are tested for impairment in accordance with IAS 36 “Impairment of Assets”.
ii)
Lease liabilities
At the commencement date of the lease, the group recognises lease liabilities measured at the present value of all
remaining lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments where the contracts specify fixed or minimum uplifts) and variable lease payments that
depend on an index or a rate.
The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which
the event or condition that triggers the payment occurs. Due to the nature of the leased assets the interest rate implicit
in the lease is usually not readily determinable, the Group therefore uses the incremental borrowing rate in calculating
the present value of lease payments at the lease commencement date.
The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on
the remaining balance of the liability for each period. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term or a change in the in-substance fixed lease payments.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
64
Zambeef Products PLC
2
Summary of material accounting policies (continued)
k)
Goodwill
Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances
indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the
disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those
cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in
which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for
internal management purposes, being the operating segments.
l)
Biological assets
Biological assets are measured at fair value less cost to sell, based on market prices at auction of livestock of similar
age, breed and genetic merit, with adjustments, where necessary, to reflect the differences. Costs to sell include the
incremental selling costs, including auctioneers’ fees, commission paid to brokers and dealers, and estimated costs of
transport to the market, but exclude finance costs and income taxes.
Changes in fair value of livestock and growing crop are recognised in profit or loss. Farming costs such as feeding,
fertilisers, labour costs, pasture maintenance and veterinary services are expensed as incurred. The cost to purchase of
cattle, chickens and pigs plus transportation charges are capitalised as part of biological assets.
Feedlot Cattle and lactating dairy animals are measured at fair value based on market prices of similar age, breed and
genetic merit, with adjustments, where necessary, to reflect the differences. Market prices are obtained from local
active market. Cattle are classified as current assets if they are to be sold within one year. Dairy animals are classified as
non-current assets as their useful economic life is expected to be more than a year.
Standing crops (Maize, Soya and Wheat) are measured at fair value at each reporting date based on the estimated
market value of fully-grown standing crops adjusted for the age and condition of the crops at the reporting date.
The cost model is adopted for the measurement of non- lactating dairy animals, chickens and agricultural produce (parent
breeding stock, commercial layers, set eggs and unset eggs) as the fair values cannot be reliably measured. Breeding
stock and commercial layers are capitalized at cost at the beginning of their productive cycle and amortised on a straight-
line method over the anticipated productive cycle, to its estimated net realizable value. All the expenses incurred in
establishing and maintaining the assets are recognized in cost of sales. All costs incurred in acquiring biological assets
until point of production are capitalised.
Set and unset eggs are measured on costs with expenses incurred in maintaining the assets included within “cost of
sales” in profit or loss for the period in which they arise.
m)
Inventories
Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value.
Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure,
the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory
on the basis of first in first out. Costs of purchased inventory are determined after deducting rebates and discounts. Net
realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
65
Zambeef Products PLC
2
Summary of material accounting policies (continued)
n)
Financial instruments
Financial assets and liabilities are recognised in the Group’s statement of financial position when the Group becomes a
party to the contractual provisions of the instruments.
Classification and measurement
Financial assets
The classification depends on the entity’s business model for managing the financial assets and the contractual terms
of the cash flows. The group reclassifies debt investments when and only when its business model for managing those
assets changes. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of
the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the
cash flow characteristics of the asset. The Group measures its debt instruments at amortised cost as assets are held for
collection of contractual cash flows where those cash flows represent solely payments of principal and interest. Interest
income from these financial assets is included in finance income using the effective interest rate method. The Group's
financial assets are trade receivables and cash and cash equivalents.
i)
Trade and receivables
Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain
significant financing components when they are recognised at fair value. They are subsequently measured at
amortised cost using the effective interest method, less loss allowance.
ii)
Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in
current liabilities in the statement of financial position.
Financial liabilities
The Group's financial liabilities are classified as amortised cost. Financial liabilities are recognised initially at fair
value and inclusive of directly attributable transaction costs. The Group's financial liabilities are borrowings and
trade and other payables (excluding statutory liabilities).
i)
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees
paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the
fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it
relates.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
66
Zambeef Products PLC
2
Summary of material accounting policies (continued)
m)
Financial instruments (continued)
Financial liabilities (continued)
i)
Borrowings (continued)
Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to
extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in profit or loss, which is
measured as the difference between the carrying amount of the financial liability and the fair value of the equity
instruments issued.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period.
ii)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial
year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade
and other payables are presented as current liabilities unless payment is not due within 12 months after the
reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost
using the effective interest method.
Impairment
The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments
carried at amortised cost. The Group applies the simplified approach permitted by IFRS 9, which requires
expected lifetime losses to be recognised from initial recognition of the receivables. Refer to Note 4(b) for
further details.
Derecognition
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or
have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Any
gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses)
together with foreign exchange gains and losses.The Group derecognises financial liabilities when, and only
when, the Group’s obligations are discharged, cancelled or have expired. The difference between the carrying
amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or
loss.
Substantial modification
A substantial modification of the terms of an existing debt instrument or part of it is accounted for as an
extinguishment of the original debt instrument and the recognition of a new debt instrument. Gains or losses
arising from the modification of the terms of a debt instrument are recognised immediately in profit or loss
where the modification does not result in the derecognition of the existing instrument.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when
there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously. As at the reporting period, there were no assets
and liabilities off-set relating to financial instruments. The legally enforceable right is not contingent on future
events and is enforceable in the normal course of business and in the event of default, insolvency or bankruptcy
of the Group or the counterparty.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
67
Zambeef Products PLC
2
Summary of material accounting policies (continued)
n)
Other current assets
These amounts generally arise from transactions outside the usual operating activities of the Group. Interest may be
charged at commercial rates where the terms of repayment exceed six months. Collateral is not normally obtained.
Prepayments are amounts paid in advance during the accounting period for an underlying asset that will be consumed
in a future period. When the asset is used or consumed, the prepayments are amortised, and costs are recognised in
operating expenses. Prepayments are stated at their nominal values in the financial statements.
o)
Borrowings costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their
intended use or sale.
Investment income earned on the temporary investment of specific borrowings, pending their expenditure on qualifying
assets, is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period
in which they are incurred.
p)
Non-current assets (or disposal groups) held for sale and discontinued operation
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They
are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax
assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and
contractual rights under insurance contracts, which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair
value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or
disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously
recognised by the date of the sale of the noncurrent asset (or disposal group) is recognised at the date of derecognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are
classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held
for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented
separately from the other assets in the statement of financial position. The liabilities of a disposal group classified as held
for sale are presented separately from other liabilities in the statement of financial position.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to
dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately in the statement of profit or loss.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
68
Zambeef Products PLC
2
Summary of material accounting policies (continued)
q)
Share capital and share premium
Ordinary shares are classified as share capital in equity. Mandatorily redeemable preference shares are classified as
liabilities. However, the Group classifies preference shares as equity as they do not meet the definition of a financial
liabilities. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.
Any premium received over and above the par value of the shares is classified as share premium in equity. Incremental
costs directly attributable to the issue of new ordinary shares are shown in equity as deduction from the proceeds.
r)
Earnings per share
i)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company, excluding
any costs of servicing equity other than ordinary shares by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and
excluding treasury shares.
ii)
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after-income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares, and the weighted average number of additional ordinary shares that would have been
outstanding assuming the conversion of all dilutive potential ordinary shares.
s)
Employee benefits
i)
Short term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave that
are expected to be settled wholly within 12 months after the end of the period in which the employees render
the related service are recognised in respect of employees’ services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as
current employee benefit obligations in the statement of financial position.
ii)
Long term incentive scheme
The Groups intention is to drive a strong and sustainable long-term performance culture by aligning the
interests of Management with Shareholders, and to share wealth created with Management who have driven
and delivered on the sustainable growth in the value of the company. The Management Long Term Incentive
was approved by the Remuneration Committee and the committee has absolute discretion in the interpretation
and application of the rules. The Company makes use of the Value Growth Units (VGU) by applying a consistent
formulae to determine a value per VGU. The VGU’s vest /are paid out after a three (3) year period subject to
their value growth over the time period. The number of VGU’s awarded is determined by the performance of the
company against determined performance metrics which are assessed on an annual basis.
iii)
Post-employment obligations
The Group operates various post-employment schemes, including both defined contribution and benefit plans.
Defined contribution plan
The Group and all its employees pay contributions to the National Pension Scheme Authority (NAPSA), a publicly
administered pension scheme on a mandatory basis. The Group has no further payment obligations once the
contributions have been paid. The contributions are recognised as employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future
payments is available.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
69
Zambeef Products PLC
2
Summary of material accounting policies (continued)
s)
Employee benefits (continued)
ii)
Post-employment obligations (continued)
Defined benefit pension plan (continued)
The liability recognised in the statement of financial position in respect of defined benefit pension plans is the
present value of the defined benefit obligation at the end of the reporting period. The plan is unfunded. The
defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms approximating to the terms of the related obligation. In countries where
there is no deep market in such bonds, the market rates on government bonds are used.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation. This cost is included in employee benefit expense in the statement of profit or loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognised in the period in which they occur, directly in other comprehensive income. They are included in
retained earnings in the statement of changes in equity and in the statement of financial position.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognised immediately in profit or loss as past service costs.
Termination benefits
Termination benefits are payable when employment is terminated by the Group before the normal retirement
date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises
termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of
those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 and
involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy,
the termination benefits are measured based on the number of employees expected to accept the offer. Benefits
falling due more than 12 months after the end of the reporting period are discounted to present value.
t)
Income tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the
applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end
of the reporting period in the countries where the Group and its subsidiaries operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an
uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected
value, depending on which method provides a better prediction of the resolution of the uncertainty.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
70
Zambeef Products PLC
2
Summary of material accounting policies (continued)
t)
Income tax (continued)
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the annual financial statements. However, deferred tax liabilities
are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for
if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the
time of the transaction, affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and
deductible temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income
tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and
liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
3
Critical accounting estimates and judgements
The preparation of annual financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the Group’s accounting policies.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under
the circumstances.
The areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially
adjusted due to estimates and assumptions turning out to be wrong are as follows:
i)
Estimated Goodwill recoverable amount
The Group tests whether goodwill has suffered any impairment on an annual basis. The recoverable amount of the
cash-generating units (CGUs) is determined based on value-in-use calculations which require the use of assumptions.
The calculations use cash flow projections based on financial budgets approved by management covering a five-year
period. Cash flows beyond the five-year period are extrapolated using the estimated growth rates. These growth rates
are consistent with forecasts included in industry reports specific to the industry in which each CGU operates.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
71
Zambeef Products PLC
3
Critical accounting estimates and judgements (continued)
ii)
Valuation of biological assets
In measuring the fair value of livestock and standing crop, various management estimates and judgements are
required.
Estimates and judgements in determining the fair value of livestock relate to market prices, average weight and
quality of animals, and mortality rates. The livestock grow at different rates and there can be a considerable spread in
the quality and weight of animals that affects the price achieved. An average weight is assumed for the animals based
on a sample deemed to be representative of the total population per breed and genetic merit.
For standing crop, the most significant estimate relates to management’s assessment of anticipated yield per hectare
and and adjustment related to the crops rate of growth. This assessment considers historic yields, climate conditions
and prices.
iii)
Estimation of defined benefit obligation (DBO)
Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates
of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may
significantly impact the DBO amount and the annual defined benefit expenses amount.
iv)
Impairment of financial assets
The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The
Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the
Group’s past history and existing market conditions, as well as forward-looking estimates at the end of each reporting
period. Details of the key assumptions and inputs used are disclosed in Note 4(b).
4
Financial risk management
The Group’s risk management is predominantly controlled by a central treasury department (group treasury) under policies
approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close co-operation
with the Group’s operating units. The Board provides written principles for overall risk management, as well as policies
covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments
and non-derivative financial instruments, and investment of excess liquidity.
The Group’s Board of Directors believes that the Group is well positioned in an improving economy. Factors contributing to
the Group’s strong position are:
•
Increase in the retail footprint of the Group;
•
Increase in production facilities of the Group, leading to higher volumes available for retail;
•
Improvements in the management team across various areas of the Group leading to positive reinforcement of
strong operational synergies.
Overall, the Group is in a strong position and has sufficient capital and liquidity to service its operating activities and
debt.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
72
Zambeef Products PLC
4
Financial risk management (continued)
a)
Market risk
i)
Foreign exchange risk exposure
Foreign exchange risk arises when recognised assets or liabilities are denominated in a currency that is not the entity’s
functional currency.
The Group is exposed to foreign currency risk arising from various currency exposures, primarily with respect to the
United States Dollar (US$). These risks are minimised by matching the foreign currency receipts to the foreign currency
payments as well as holding foreign currency bank accounts and export sales.
The Group’s exposure to foreign currency risk, primarily with respect to the United States Dollar (US$), at the end of the
reporting period, expressed in Zambian Kwacha is detailed in the table below.
Group
Company
US$
US$
K’000
K’000
As at 30 September 2024
Financial assets:
Cash and cash equivalents
145,176
144,481
Trade and other receivables
430,704
401,840
575,880
546,321
Financial liabilities:
Bank overdrafts
(53,307)
(53,307)
Bank loans
(171,266)
(171,266)
Trade and other payable
(311,207)
(279,500)
Lease liabilities
(8,307)
(8,307)
(544,087)
(512,380)
Net exposure
(31,793)
(33,941)
As at 30 September 2023
Financial assets:
Cash and cash equivalents
206,659
198,455
Trade and other receivables
132,927
68,581
339,586
267,036
Financial liabilities:
Bank overdrafts
(40,633)
(40,321)
Bank loans
(148,720)
(148,720)
Trade and other payables
(376,590)
(256,662)
Lease liabilities
(8,512)
(8,303)
(574,455)
(454,006)
Net exposure
(234,869)
(186,970)
Sensitivity
At 30 September 2024, if the Zambian Kwacha had weakened/strengthened by 10% (2023: 10%) against the United
States Dollar (US$) with all other variables held constant, the effect on post-tax profit for the year and shareholders’
equity would have been as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Impact on profit and equity
3,179
23,487
3,394
18,697
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
73
Zambeef Products PLC
4
Financial risk management (continued)
a)
Market risk (continued)
ii)
Cash flow and fair value Interest rate risk
The Group’s main interest rate risk arises from borrowings with variable rates, which expose the Group to cash
flow interest rate risk. To manage the risks, the Group structures its debt with low spreads over the variable rate
benchmark and protects itself with matching fixed interest rates on its borrowings. Management periodically
reviews economic conditions relating to such variable benchmarks and is allowed to consider alternate debt
structures where the need may arise.
The exposure of the Group’s borrowings to interest rate changes at the end of the reporting period are as follows:
2024
% of total
loans
2023
% of total
loans
K’000
K’000
Group
Variable rate borrowings
1,569,414
67%
1,073,911
65%
Company
Variable rate borrowings
1,569,414
67%
884,232
60%
The percentage of total loans shows the proportion of loans that are currently at variable rates in relation to the
total amount of borrowings.
As at 30 September 2024, with all other variables held constant, a 5 % (2023: 5%) decrease/increase in the base
interest rate would have resulted in change in post-tax profit for the year and shareholders’ equity as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Impact on profit and equity
4,526
2,657
4,526
2,353
iii)
Price risk
The Group does not hold any financial instruments subject to price risk (2023: Nil).
b)
Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as
credit exposures to outstanding receivables.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
74
Zambeef Products PLC
4
Financial risk management (continued)
b)
Credit risk (continued)
i)
Risk management
For banks and financial institutions, the Group only maintains accounts in reputable well-established financial
institutions. Through selective granting of credit, the Group’s risk control unit assesses the credit quality of
the customer, taking into account its financial position, past experience and other factors. The Group does not
grade the credit quality of receivables. Individual risk limits are set based on internal ratings in accordance with
limits set by the Board. The utilisation of credit limits is regularly monitored.
Sales to retail customers are required to be settled in cash mitigating credit risk. There are no significant
concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/
or regions. The Directors believe the credit risk of trade receivables is low.
ii)
Security
TThe Group does not obtain security on outstanding trade receivables.
iii)
Impairment of financial assets
The Group has three types of financial assets that are subject to the expected credit loss model:
•
trade receivables
•
Cash and cash equivalents
•
Other financial assets at amortised cost
Trade receivables
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped
based on shared credit risk characteristics and the days past due. The Group’s historical credit loss experience does
not show significantly different loss patterns for the various customer segments. Therefore, the grouping of trade
receivables is not disaggregated into further risk profiles other than days past due.
The expected loss rates are based on the payment profiles of sales over a period of 12 months before 30 September
2024 and the corresponding historical credit losses experienced within this period. The historical loss rates are
adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the
customers to settle the receivables. The Group has identified the inflation and interest rates of the countries in which
it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on
expected changes in these factors.
The outstanding trade receivables subjected to expected credit loss calculation are net of debtors where there is a
legal right to offset.
There were no changes in the estimation techniques or significant assumptions made as at the reporting period. The
amount that best represents the Company’s maximum exposure to credit risk is the carrying value of its financial
assets as presented in the statement of financial position.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
75
Zambeef Products PLC
4
Financial risk management (continued)
b)
Credit risk (continued)
On that basis, the loss allowance as at 30 September 2024 and 30 September 2023 was determined as follows for
trade receivables:
30 September 2024
Current
31 -60
61 – 90
Over 90
Total
days past due
days past due
days past due
Group
K’000
K’000
K’000
K’000
K’000
Gross carrying amount
107,828
21,121
8,012
7,678
144,639
Expected loss rate
2.1%
8.7%
30.3%
100%
Loss allowance
(2,293)
(1,845)
(2,430)
(7,678)
(14,246)
Amortised cost
105,535
19,276
5,582
-
130,393
Company
Gross carrying amount
70,117
10,722
1,994
5,925
88,758
Expected loss rate
2.77%
13.13%
32.27%
100%
Loss allowance
(1,943)
(1,408)
(643)
(5,925)
(9,919)
Amortised cost
68,174
9,314
1,351
-
78,839
30 September 2023
Current
31 -60
61 – 90
Over 90
Total
days past due
days past due
days past due
Group
K’000
K’000
K’000
K’000
K’000
Gross carrying amount
97,094
7,171
1,121
8,348
113,734
Expected loss rate
10.2%
15.0%
65.0%
90%
Loss allowance
(9,908)
(1,076)
(729)
(7,513)
(19,226)
Amortised cost
87,186
6,095
392
835
94,508
Company
Gross carrying amount
35,689
482
125
4,349
40,645
Expected loss rate
16.1%
89.9%
100%
100%
Loss allowance
(5,746)
(433)
(125)
(4,349)
(10,653)
Amortised cost
29,943
49
-
-
29,992
The loss allowances for trade receivables as at 30 September reconcile to the opening loss allowances as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
At start of year
19,226
29,612
10,653
14,479
Charge recognised in profit or loss
1,264
2,713
(1,802)
1,768
Utilised
(6,244)
(13,099)
1,068
(5,594)
14,246
19,226
9,919
10,653
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
76
Zambeef Products PLC
4
Financial risk management (continued)
b)
Credit risk (continued)
Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no
reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan
with the Group, and a failure to make contractual payments for a period of greater than 90 days past due.
Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent
recoveries of amounts previously written off are credited against the same line item.
The loss allowance recognised is categorised as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Performing debtors
4,139
11,713
3,985
6,304
Non-performing debtors - over 90 days
10,107
7,513
5,934
4,349
14,246
19,226
9,919
10,653
Cash and cash equivalents
While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment
loss was immaterial.
Other financial assets at amortised cost
Other financial assets at amortised cost relate to receivables from related parties, staff debtors, and sundry debtors. All
of the Group’s other financial assets at amortised cost are considered to have a low risk of default and the debtors have
a strong capacity to meet their contractual cash flow obligations in the near term.
c)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Prudent liquidity
risk management implies maintaining sufficient cash and marketable securities and the availability of funding through
an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, Group treasury maintains flexibility in funding by maintaining
availability under committed credit lines.
Management monitors rolling forecasts of the group’s liquidity reserve (comprising the undrawn borrowing facilities
below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the
operating companies of the Group, in accordance with practice and limits set by the Group. These limits vary by location
to take into account the liquidity of the market in which the entity operates.
In addition, the Group’s liquidity management policy involves projecting cash flows in major currencies and considering
the level of liquid assets necessary to meet these, monitoring financial position liquidity ratios against internal and
external regulatory requirements and maintaining debt financing plans.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
77
Zambeef Products PLC
4
Financial risk management (continued)
c)
Liquidity risk (continued)
i)
Financing arrangements
The Group had access to the following undrawn borrowing facilities (Bank loans and overdrafts) at the end
of the reporting period:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Floating rate
Expiring within one year
281,154
2,574
281,154
2,280
The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.
Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in a
denominated currency and have an average maturity of 1 year (2023:1 year).
ii)
Maturities of financial liabilities
The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on their
contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows.
Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
Less than 1
year
Between 1
and 2 years
Between
2 and 5
years
Over
5 years
Total
contractual
cash flows
K’000
K’000
K’000
At 30 September 2024
Group
Trade and other payables*
905,587
-
-
-
905,587
Borrowings
1,657,398
512,587
556,281
83,372
2,809,638
Lease liabilities
11,223
7,430
7,404
4,725
30,782
2,574,208
520,017
563,685
88,097
3,746,007
Company
Trade and other payables*
1,166,642
-
-
-
1,166,642
Borrowings
1,657,398
512,587
556,281
83,372
2,809,638
Lease liabilities
11,223
7,430
7,404
4,725
30,782
2,835,263
520,017
563,685
88,097
4,007,062
At 30 September 2023
Group
Trade and other payables*
820,902
-
-
-
820,902
Borrowings
1,062,438
200,493
257,824
500,163
2,020,918
Lease liabilities
2,038
17,172
5,936
6,005
31,151
1,885,378
217,665
263,760
506,168
2,872,971
Company
Trade and other payables*
495,035
-
-
-
495,035
Borrowings
872,759
200,493
257,824
500,163
1,831,239
Lease liabilities
759
14,244
-
-
15,003
1,368,553
214,737
257,824
500,163
2,341,277
*Trade and other payables exclude statutory liabilities as these are imposed by law and therefore do not meet the
definition of financial instruments.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
78
Zambeef Products PLC
4
Financial risk management (continued)
d)
Agricultural risk
Agricultural production by its nature contains elements of significant risks and uncertainties which may adversely
affect the business and operations of the Group, including but not limited to the following:
•
any future climate change with a potential shift in weather patterns leading to floods or droughts and associated
crop losses;
•
potential insect, fungal and weed infestations resulting in crop failure and reduced yields;
•
wild and domestic animal conflicts and crop raiding and;
•
livestock disease outbreaks. Adverse weather conditions represent a significant operating risk to the business,
affecting the quality and quantity of production and the levels of farm inputs.
The Group minimises these risks through a robust insurance policy on biological stock (crop and livestock) and grain
inventory.
e)
Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that
they can continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal
capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may
adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to
reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio which is calculated
as Net debt divided by Total ‘equity’ (as shown in the statement of financial position).
During 2023, the Group’s strategy, which was unchanged from prior year, was to maintain a gearing ratio of less
than 70%.The gearing ratio is not part of the contractual debt covenants imposed by the lenders. Therefore, there
is no adverse financing implications on the Group in the event that the ratio deteriorates. The gearing ratios at 30
September 2024 and 30 September 2023 were as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Net debt (Note 30 (ii))
2,069,546
1,411,354
2,111,198
1,274,664
Total equity attributable to parent
4,973,185
4,683,756
3,890,600
4,138,333
Gearing ratio
42%
30%
54%
31%
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
79
Zambeef Products PLC
4
Financial risk management (continued)
f)
Fair value measurements
This note explains the judgements and estimates made in determining the fair values of the financial and non-financial
assets and liabilities that are recognised and measured at fair value in the financial statements. As at the end of the
reporting period, the Group had financial instruments measured at fair value. To provide an indication about the
reliability of the inputs used in determining fair value, the Group has classified its non-financial assets and liabilities
into the three levels prescribed under the accounting standards as below:
•
Level 1: The fair value of financial and non-financial instruments traded in active markets is based on quoted
market prices at the end of the reporting period;
•
Level 2: The fair value of financial and non-financial instruments that are not traded in an active market is
determined using valuation techniques that maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2;
•
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.
Level 1
Level 2
Level 3
Total
At 30 September 2024
K’000
K’000
K’000
K’000
Group
Property plant and equipment
-
-
5,577,265
5,577,265
Borrowings
-
-
511,286
511,286
Biological assets
-
440,895
-
440,895
-
440,895
6,088,551
6,529,446
Company
Non-financial assets:
Property plant and equipment
-
-
4,791,182
4,791,182
Borrowings
-
-
511,286
511,286
Biological assets
-
362,780
-
362,780
-
362,780
5,302,468
5,665,248
At 30 September 2023
Group
Non-financial assets:
Property plant and equipment
-
-
4,818,533
4,818,533
Borrowings
-
-
422,660
422,660
Biological assets
-
408,398
-
408,398
-
408,398
5,241,193
5,649,591
Company
Non-financial assets:
Property plant and equipment
-
-
3,595,380
3,595,380
Borrowings
-
-
422,660
422,660
Biological assets
-
355,758
-
355,758
-
355,758
4,018,040
4,373,798
There were no transfers between the levels for recurring fair value measurements during the year.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
80
Zambeef Products PLC
4
Financial risk management (continued)
f)
Fair value measurements (continued)
Property, plant and equipment
Level 3 fair values were derived using comparable value of similar items of property, plant and equipment and adjusted
for differences in key attributes such as property size and condition. Depreciated replacement cost approach was
used for specialized buildings, furniture and fittings, motor vehicles and office equipment.
The best evidence of fair value is current prices in an active market for similar properties. Where such information is
not available the directors consider information from a variety of sources including current prices in an active market
for properties of a different nature or recent prices of similar properties in less active markets, adjusted to reflect
those differences.
Biological assets
Biological assets are measured at fair value less cost to sell. Refer to Note 3(ii) for further information on the inputs
used in determining the fair value.
g)
Financial instruments by category
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Financial assets at amortised cost
Trade and other receivables (excluding
prepayments)
321,461
315,078
450,497
1,266,813
Cash and cash equivalents
334,415
271,222
292,763
209,854
655,876
586,300
743,260
1,476,667
Financial liabilities at amortised cost
Borrowings
2,382,033
1,660,506
2,382,033
1,470,827
Lease liabilities
21,928
22,070
21,928
13,691
Trade and other payables (excluding
statutory liabilities)
905,587
812,763
1,166,642
878,723
3,309,548
2,495,339
3,570,603
2,363,241
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
81
Zambeef Products PLC
5
Segment reporting
The Group’s Chief Operating Decision Makers (CODMs), (consisting of the Chief Executive Officer and the Chief Financial
Officer), examine the Group’s performance both from a product and geographic perspective and has identified two reportable
segments of its business as shown in the table below.
During the year, individual segments (beef, chicken, pork, fish, dairy products, day-old chicks and stockfeed) have been
aggregated into one reportable segment, Retailing and Food production, as they have similar average gross margins and
similar expected growth rates. The same applies to the Cropping and milling segment;
•
Retailing and food production: This part of business sells cold food chain products which are mainly beef, chicken,
pork, fish, milk, leather and dairy products as well as sale of day-old chicks and stockfeed.
•
Cropping and milling: This part of business sells wheat, soya and maize grain as well as flour mill and bread.
The CODMs primarily use a measure of gross profit to assess the performance of the operating segments. Operating
costs, interest income, finance cost and assets are not allocated to segments, as these activities are driven by the
central treasury function, which manages the cash position of the Group. There is no single customer of the Group
making up 10% of revenue.
Group
Retailing and Cold Chain
Food Products
Cropping
& Milling
Total
2024
K’000
K’000
K’000
Segment revenue
5,349,141
4,875,996
10,225,137
Inter-segment eliminations
(558,182)
(2,351,110)
(2,909,292)
External revenue
4,790,959
2,524,886
7,315,845
Gross profit
1,172,392
1,302,726
2,475,118
2023
Segment revenue
3,579,502
3,799,233
7,378,735
Inter-segment eliminations
(869,521)
(463,057)
(1,332,578)
External revenue
2,709,981
3,336,176
6,046,157
Gross profit
969,955
873,307
1,843,262
Company
Retailing and Cold Chain
Food Products
Cropping
& Milling
Total
2024
K’000
K’000
K’000
Segment revenue
4,014,294
2,925,217
6,939,511
Gross profit
709,091
1,302,726
2,011,817
2023
Segment revenue
1,214,438
2,169,970
3,384,408
Gross profit
209,142
697,358
906,500
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
82
Zambeef Products PLC
5
Segment reporting (continued)
i)
Segment revenue (continued)
Group
Retailing and
Cold Chain Food
Products
Cropping
& Milling
Total
2024
K’000
K’000
K’000
Gross profit by segment
1,172,392
1,302,726
2,475,118
Other income/(expenses)
22,103
(84,499)
(62,396)
Impairment of investment in associate
-
(34,370)
(34,370)
Distribution and administrative expenses
(1,265,929)
(625,231)
(1,891,160)
Operating profit
(71,434)
558,626
487,192
2023
Gross profit by segment
969,955
873,307
1,843,262
Other income/(expenses)
(11,848)
(37,284)
(49,132)
Distribution and administrative expenses
(833,458)
(599,315)
(1,432,773)
Operating profit
124,649
236,708
361,357
Company
2024
Gross profit by segment
1,831,536
180,281
2,011,817
Other income/(expenses)
12,186
(81,085)
(68,899)
Impairment of investment in associate
-
(34,370)
(34,370)
Distribution and administrative expenses
(997,307)
(628,645)
(1,625,952)
Operating profit
846,415
(563,819)
282,596
2023
Gross profit by segment
209,142
697,358
906,500
Other income/(expenses)
(8,080)
(11,752)
(19,832)
Distribution and administrative expenses
(173,418)
(569,353)
(742,771)
Operating profit
27,644
116,253
143,897
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Operating profit
487,192
361,357
282,596
143,897
Unallocated:
Net Finance income and costs
(294,531)
(155,089)
(294,188)
(123,921)
Share of loss from equity investment
-
(2,595)
-
(2,595)
Profit/(loss) before income tax
192,661
203,673
(11,592)
17,381
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
83
Zambeef Products PLC
5
Segment reporting (continued)
ii)
Segment assets and liabilities
The Group’s assets and liabilities are not allocated to each segment. However, the CODMs review information
regarding the operating assets and liabilities of the main reporting entities within the Group as shown in the table
below.
For the purpose of allocating assets and liabilities, the ‘Other’ segment comprises of the foreign subsidiaries (Master
Meats Nigeria and Ghana) and Zamleather Limited.
Company
Retailing Ltd
Masterpork
Other
Total
K’000
K’000
K’000
K’000
K’000
As at 30 September 2024
Total assets
7,611,358
443,230
591,013
166,897
8,812,498
Total liabilities
3,689,697
49,098
89,750
29,509
3,858,054
As at 30 September 2023
Total assets
5,708,592
585,919
142,380
1,268,097
7,704,988
Total liabilities
2,311,433
427,308
39,258
259,049
3,037,048
6
Revenue from contract customers
The Group derives revenue from the transfer of goods at a point in time in the following major product lines:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Retailing and food production
4,790,958
2,709,981
4,014,294
1,214,438
Cropping and Milling
2,524,887
3,336,176
2,925,217
2,169,970
7,315,845
6,046,157
6,939,511
3,384,408
7
Other income/(expenses)
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Rental income
27,345
3,859
26,935
2,828
Management fees*
7,014
21,242
7,014
21,242
Gain/(loss) on disposal of fixed assets
581
(7,756)
326
1,040
Exchange gains/(losses) on working capital
(96,072)
(63,764)
(108,391)
(43,174)
(61,132)
(46,419)
(74,116)
(18,064)
*The management fees relate to recharges of head office costs from the Company to the respective subsidiaries.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
84
Zambeef Products PLC
8
Breakdown of expenses by nature
Group
Company
2024
2023
2024
2023
Cost of sales of goods:
K’000
K’000
K’000
K’000
Changes in inventory – Finished goods
4,652,725
3,739,698
4,221,396
1,948,055
Production and overhead costs
614,472
154,847
614,472
158,847
Fuel expenses
58,368
67,136
58,368
65,369
Transport
32,541
25,341
32,264
25,341
Veterinary
3,571
19,365
1,195
13,600
Other miscellaneous expenses
484,882
839,705
899,061
835,671
5,846,559
4,846,092
5,826,756
3,046,883
Distribution expenses:
Employee benefits expense (Note 9)
49,350
34,880
49,350
-
Depreciation
31,291
23,310
31,291
-
Repairs and maintenance
976
6,123
976
-
Levies and licenses
9,638
9,171
9,638
-
Transport
106,468
19,285
86,530
1,302
Insurance
2,043
116
2,043
-
Satellite
2,537
479
2,537
-
Travel
3,813
478
3,813
-
Other
2,279
2,445
4,593
-
208,395
96,287
190,771
1,302
Administrative expenses:
Depreciation
173,818
124,724
151,750
73,881
Employee benefits expense (Note 9)
769,570
683,333
659,657
386,982
Legal and other professional fees
32,914
24,337
29,367
18,575
Directors’ remuneration
18,939
15,569
18,939
2,161
Auditors’ remuneration
5,100
4,181
5,100
4,181
Repairs and maintenance
188,164
137,165
154,600
83,693
Water and electricity
161,616
89,531
159,979
57,889
Other miscellaneous expenses
332,644
257,646
252,374
114,107
1,682,765
1,336,486
1,431,766
741,469
Total expenses
7,737,719
6,278,865
7,449,293
3,789,654
9
Finance income and costs
Group
Company
2024
2023
2024
2023
Finance costs:
Interest expense on bank overdrafts (Note 29(ii))
(118,669)
(87,323)
(118,669)
(57,471)
Interest expense on borrowings (Note 29(ii))
(148,681)
(44,646)
(148,681)
(44,646)
Interest expense on leases (Note 29(ii))
(3,437)
(2,462)
(3,322)
(1,312)
(270,787)
(134,431)
(270,672)
(103,429)
Exchange losses on borrowings
(21,398)
(18,812)
(21,398)
(18,812)
Exchange losses on leases
(2,346)
(1,846)
(2,118)
(1,680)
(23,744)
(20,658)
(23,516)
(20,492)
Net finance income and costs
(294,531)
(155,089)
(294,188)
(123,921)
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
85
Zambeef Products PLC
10
Employee benefit expense
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Salaries and other staff costs
789,158
647,035
692,111
380,033
Retirement benefits costs:
Social security costs
6,042
28,745
4,292
3,347
Pension costs
23,720
42,433
12,604
12,488
818,920
718,213
709,007
395,868
Allocated as:
Distribution expenses
49,350
34,880
49,350
-
Administrative expenses
769,570
683,333
659,657
395,868
818,920
718,213
709,007
395,868
11
Income tax expense
This note provides an analysis of the Group’s income tax expense and how the tax expense is affected by non-assessable and
nondeductible items.
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Current income tax charge
24,775
92,567
11,959
32,906
Deferred income tax credit (Note 25)
(12,210)
(19,716)
(30,187)
(17,202)
12,565
72,851
(18,228)
15,704
i)
Numerical reconciliation of income tax expense to prima facie tax payable
The Group has various tax rates applicable on the basis of individual being defined as agricultural entities or divisions
(income tax rate of 10%) or manufacturing entities or divisions (income tax rate of 30%). Therefore, applicable tax
rates range from 10% to 30% depending on the activities of the entities within the Group. The tax on the Group’s and
company’s profit before income tax differs from the theoretical amount that would arise using the statutory income
tax rate as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Profit before income tax from:
Continuing operations
192,661
203,673
(11,592)
17,381
Discontinued operations
-
(10,604)
-
(10,604)
192,661
193,069
(11,592)
6,777
Tax at rate of 10% (2023: 10%)
3,892
19,307
(16,779)
678
Tax effects of:
Expenses not deductible for tax purposes
(7,441)
48,257
(17,564)
12,784
Effect of difference in tax rates
16,114
5,287
16,115
2,242
12,565
72,851
(18,228)
15,704
Income tax expense is attributable to:
Profit from continuing operations
12,565
72,851
(18,228)
15,704
Profit from discontinued operation
-
-
-
-
12,565
72,851
(18,228)
15,704
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
86
Zambeef Products PLC
11
Income tax expense (continued)
ii)
Movement in current income tax on the statement of financial position
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
At start of year
42,764
38,520
13,354
14,681
Current income tax charge
24,775
92,567
11,959
32,906
Addition through business combina-
tion (Note 35)
-
-
10,233
-
Payments made during the year
(49,036)
(88,323)
(28,209)
(34,233)
At end of year
18,503
42,764
7,337
13,354
iii)
Analysis of tax losses
During the year, the Group carried forward tax losses of K223.9 million (2023: K358.8 million). Unutilised losses
expire after 5 years as shown in the table below:
Period end
Tax loss c/f
Expiry date
K’000
30 September 2020
5,327
30 September 2025
30 September 2021
-
30 September 2026
30 September 2022
1,986
30 September 2027
30 September 2023
154,321
30 September 2028
30 September 2024
62,280
30 September 2029
Total
223,914
During the year, the Company carried forward tax losses of K169.9 million (2023: K340.7 million). Unutilised losses
expire after 5 years as shown in the table below:
Period end
Tax loss c/f
Expiry date
K’000
30 September 2020
-
30 September 2025
30 September 2021
-
30 September 2026
30 September 2022
-
30 September 2027
30 September 2023
154,321
30 September 2028
30 September 2024
15,591
30 September 2029
Total
169,912
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
87
Zambeef Products PLC
12
Property, plant and equipment
Group
Right of
use assets
Buildings
Plant
and
machinery
Motor
vehicles
Furniture
and
equipment
Capital
work in
progress
Total
As at 30 September 2022
K’000
K’000
K’000
K’000
K’000
K’000
K’000
Cost or fair value
1,586,040
717,249
761,745
126,616
53,571
80,701
3,325,922
Accumulated depreciation
(41,143)
(18,516)
(62,272)
(26,320)
(10,671)
-
(158,922)
Net book value
1,544,897
698,733
699,473
100,296
42,900
80,701
3,167,000
Year ended 30 September 2023
Opening net book value
1,544,897
698,733
699,473
100,296
42,900
80,701
3,167,000
Additions incl. borrowing costs
-
4,928
176,520
77,552
26,884
531,411
817,295
Additions – ROU
10,916
-
-
-
-
-
10,916
Transfers
2,909
92,681
148,982
-
-
(244,572)
-
Reclassification of ROU
(10,050)
-
10,050
-
-
-
-
Revaluation surplus
1,003,412
-
-
-
-
-
1,003,412
Disposals -cost
-
-
(3,729)
(1,422)
(54)
-
(5,205)
Disposals-accumulated depreciation
-
-
705
525
11
-
1,241
Derecognised - cost
(4,139)
-
-
-
-
-
(4,139)
Derecognised – accumulated
depreciation
2,075
-
-
-
-
-
2,075
Impairment of assets
-
-
(5,925)
-
(281)
-
(6,206)
Depreciation charge
(6,095)
(17,225)
(88,096)
(35,622)
(12,566)
-
(159,604)
Exchange differences
(2,952)
(1,891)
(1,261)
(113)
(2,035)
-
(8,252)
Net book value
2,540,973
777,226
936,719
141,216
54,859
367,540
4,818,533
As at 30 September 2023
Cost or fair value
2,586,136
812,967
1,086,382
202,633
78,084
367,540
5,133,742
Accumulated depreciation
(45,163)
(35,741)
(149,663)
(61,417)
(23,225)
-
(315,209)
Net book value
2,540,973
777,226
936,719
141,216
54,859
367,540
4,818,533
Assets classified as capital work in progress mainly relate to the costs incurred for the ongoing farm expansion projects at the Group’s
locations.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
88
Zambeef Products PLC
12
Property, plant and equipment (continued)
Group
Right of use
assets
Buildings
Plant
and
machinery
Motor
vehicles
Furniture
and
equipment
Capital
work in
progress
Total
As at 30 September 2023
K’000
K’000
K’000
K’000
K’000
K’000
K’000
Cost or fair value
2,586,136
812,967
1,086,382
202,633
78,084
367,540
5,133,742
Accumulated depreciation
(45,163)
(35,741)
(149,663)
(61,417)
(23,225)
-
(315,209)
Net book value
2,540,973
777,226
936,719
141,216
54,859
367,540
4,818,533
Year ended 30 September 2024
Opening net book value
2,540,973
777,226
936,719
141,216
54,859
367,540
4,818,533
Additions incl. borrowing costs
-
6,473
162,314
66,947
20,551
558,996
815,281
Additions - ROU
6,605
-
-
-
-
-
6,605
Transfers
-
153,523
87,227
-
-
(240,750)
-
Reclassification from asset held
for sale
87,641
49,043
20,517
236
203
-
157,640
Revaluation surplus
-
2,337
2,356
471
570
-
5,734
Disposals -cost
-
-
(3,739)
(5,077)
(45)
-
(8,861)
Disposals-accum dep
-
-
861
2,665
22
-
3,548
Impairment of assets
-
-
(3,941)
(22)
-
-
(3,963)
Depreciation charge
(5,480)
(20,831)
(118,526)
(47,586)
(17,989)
-
(210,412)
Exchange differences
-
(2,426)
(2,476)
(1,107)
(831)
-
(6,840)
Net book value
2,629,739 965,345
1,081,312
157,743
57,340
685,786
5,577,265
As at 30 September 2024
Cost or fair value
2,680,382
1,021,916 1,348,641
264,081
98,532
685,786
6,099,338
Accumulated depreciation
(50,643)
(56,571)
(267,329)
(106,338)
(41,192)
-
(522,073)
Net book value
2,629,739
965,345 1,081,312
157,743
57,340
687,786
5,577,265
Assets classified as capital work in progress mainly relate to the costs incurred for the ongoing farm expansion projects at the Group’s
locations.locations.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
89
Zambeef Products PLC
12
Property, plant and equipment (continued)
Company
Right of
use assets
Buildings
Plant
and
machinery
Motor
vehicles
Furniture
and
equipment
Capital
work in
progress
Total
As at 30 September 2022
K’000
K’000
K’000
K’000
K’000
K’000
K’000
Cost or fair value
1,265,482
516,215
378,459
27,707
23,111
37,386
2,248,360
Accumulated depreciation
(21,754)
(7,361)
(28,707)
(4,746)
(4,180)
-
(66,748)
Net book value
1,243,728
508,854
349,752
22,961
18,931
37,386
2,181,612
Year ended 30 September 2023
Opening net book value
1,243,728
508,854
349,752
22,961
18,931
37,386
2,181,612
Additions – PPE
-
-
240,915
15,097
9,919
239,067
504,998
Additions – ROU
9,023
-
-
-
-
-
9,023
Transfers
-
41,441
8,032
409
-
(49,882)
-
Revaluation surplus
977,426
-
-
-
-
-
977,426
ROU asset transfer - cost
(32,260)
-
32,260
-
-
-
-
ROU asset transfer -
depreciation
22,210
-
(22,210)
-
-
-
-
Impairment of assets
-
-
(601)
-
(86)
-
(687)
Disposals-cost
-
-
(3,729)
(73)
(39)
-
(3,841)
Disposals-accumulated
depreciation
-
-
705
18
7
-
730
Depreciation charge
(2,683)
(7,634)
(49,287)
(9,204)
(5,073)
-
(73,881)
Net book value
2,217,444
542,661
555,837
29,208
23,659
226,571
3,595,380
As at 30 September 2023
Cost or fair value
2,219,671
557,656
655,336
43,140
32,905
226,571
3,735,279
Accumulated depreciation
(2,227)
(14,995)
(99,499)
(13,932)
(9,246)
-
(139,899)
Net book value
2,217,444
542,661
555,837
29,208
23,659
226,571
3,595,380
Assets classified as capital work in progress mainly relate to the costs incurred for the ongoing farm expansion projects at the
Company’s locations.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
90
Zambeef Products PLC
12
Property, plant and equipment (continued)
Company
Right of
use assets
Land and
buildings
Plant
and
machinery
Motor
vehicles
Furniture
and
equipment
Capital
work in
progress
Total
As at 30 September 2023
K’000
K’000
K’000
K’000
K’000
K’000
K’000
Cost or fair value
2,241,881
557,656
633,126
43,140
32,905
226,571
3,735,279
Accumulated depreciation
(24,437)
(14,995)
(77,289)
(13,932)
(9,246)
-
(139,899)
Net book value
2,217,444
542,661
555,837
29,208
23,659
226,571
3,595,380
Year ended 30 September 2024
Opening net book value
2,217,444
542,661
555,837
29,208
23,659
226,571
3,595,380
Additions - from business
combination (Note 35)
35,578
228,251
219,691
114,177
30,481
56,714
684,892
Additions incl. borrowing costs
-
1,769
156,793
57,808
18,398
303,379
538,147
Additions -ROU
6,504
-
-
-
-
-
6,504
Transfers
-
73,537
37,186
-
-
(110,723)
-
Reclass from asset held for sale- cost
87,641
49,043
20,517
236
203
-
157,640
Impairment of assets
-
-
(3,393)
(22)
-
-
(3,415)
Disposals-cost
-
-
(3,235)
(5,077)
(45)
-
(8,357)
Disposals-accumulated depreciation
-
-
745
2,666
22
-
3,433
Depreciation charge
(4,328)
(15,057)
(101,624)
(45,145)
(16,888)
-
(183,042)
Net book value
2,342,839
880,204
882,517
153,851
55,830
475,941
4,791,182
As at 30 September 2024
Cost or fair value
2,352,464
921,567
1,135,561
251,507
92,940
475,941
5,229,980
Accumulated depreciation
(9,625)
(41,363)
(253,044)
(97,656)
(37,110)
-
(438,798)
Net book value
2,342,839
880,204
882,517
153,851
55,830
475,941
4,791,182
Assets classified as capital work in progress mainly relate to the costs incurred for the ongoing farm expansion projects at the
Company’s locations.
The register showing the details of property as required by Section 30 of the Companies Act, 2017 of Zambia is available during the
business hours at the registered office of the Company.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
91
Zambeef Products PLC
12
Property, plant and equipment (continued)
i)
Non-current assets pledged as security
All assets disclosed are pledged as security on the Group’s borrowings for each reporting period and title is restricted.
The Group had no contractual commitments for the acquisition of property, plant and equipment and no amount of
compensation from third parties for items of property, plant and equipment that were impaired, lost or given up that
is included in profit or loss.
ii)
Carrying amounts that would have been recognised if assets were stated at cost
If items of property, plant and equipment were stated on the historical cost basis, the amounts would be as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Cost
3,510,785
2,711,567
2,405,203
1,865,193
Accumulated depreciation
(1,373,549)
(1,173,314)
(1,088,009)
(977,188)
2,137,236
1,538,253
1,317,194
888,005
Right of use assets
Included in the net carrying amount of property, plant and equipment are right-of-use assets relating to land, prepaid
plant and machinery and buildings.
Advance payments made in acquiring the land are added to right of use assets and amortised over the period of the
lease on a straight-line basis and therefore there is no corresponding lease liability. The effect of discounting the
ground rates is immaterial and these have been expensed to profit or loss as incurred. As at the end of the reporting
period, and unchanged from prior year, the Company had insignificant leasing arrangements. Therefore, the Company
has taken the exemption under the standard, and these have been expensed to profit or loss as incurred. Lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the
lessor.
Leasehold land is initially recognised at cost and subsequently shown at fair value, based on valuations by external
independent valuers, less accumulated depreciation and impairment losses, and adjusted for any remeasurement of
lease liabilities.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
92
Zambeef Products PLC
12
Property, plant and equipment (continued)
Right of use assets (continued)
The movement in the right of use assets is as presented in the note property, plant and equipment.
Group
Leasehold
Land
Buildings
Plant
and machinery
Total
As at 30 September 2022
Cost or fair value
1,512,508
28,187
45,345
1,586,040
Accumulated depreciation
-
(19,284)
(21,859)
(41,143)
Net book value
1,512,508
8,903
23,486
1,544,897
Year ended 30 September 2023
Opening net book value
1,512,508
8,903
23,486
1,544,897
Additions - ROU
-
2,104
8,812
10,916
Transfers
-
-
2,909
2,909
Revaluation surplus
1,003,412
-
-
1,003,412
Reclassification from ROU
-
-
(10,050)
(10,050)
Derecognised - cost
-
(4,139)
-
(4,139)
Derecognised - accumulated depreciation
-
2,075
-
2,075
Depreciation charge
-
(2,023)
(4,072)
(6,095)
Exchange differences
(2,952)
-
-
(2,952)
Net book value
2,512,968
6,920
21,085
2,540,973
As at 30 September 2023
Cost or fair value
2,512,968
26,152
47,016
2,586,136
Accumulated depreciation
-
(19,232)
(25,931)
(45,163)
Net book value
2,512,968
6,920
21,085
2,540,973
Year ended 30 September 2024
Opening net book value
2,512,968
6,920
21,085
2,540,973
Additions - ROU
-
101
6,504
6,605
Reclassification from held for sale
87,641
-
-
87,641
Depreciation charge
-
(2,290)
(3,190)
(5,480)
Exchange differences
-
-
-
-
Net book value
2,600,609
4,731
24,399
2,629,739
As at 30 September 2024
Cost or fair value
2,600,609
26,253
53,520
2,680,382
Accumulated depreciation
-
(21,522)
(29,121)
(50,643)
Net book value
2,600,609
4,731
24,399
2,629,739
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
93
Zambeef Products PLC
12
Property, plant and equipment (continued)
Right of use assets (continued)
The movement in the right of use assets is as presented in the note property, plant and equipment.
Company
Leasehold
Land
Buildings
Plant
and machinery
Total
As at 30 September 2022
Cost or fair value
1,220,137
-
45,345
1,265,482
Accumulated depreciation
-
-
(21,754)
(21,754)
Net book value
1,220,137
-
23,591
1,243,728
Year ended 30 September 2023
Opening net book value
1,220,137
-
23,591
1,243,728
Additions - ROU
-
-
9,023
9,023
Revaluation surplus
977,426
-
-
977,426
Reclassification from ROU
-
-
(10,050)
(10,050)
Depreciation charge
-
-
(2,683)
(2,683)
Net book value
2,197,563
-
19,881
2,217,444
As at 30 September 2023
Cost or fair value
2,197,563
-
22,108
2,219,671
Accumulated depreciation
-
-
(2,227)
(2,227)
Net book value
2,197,563
-
19,881
2,217,444
Year ended 30 September 2024
Opening net book value
2,197,563
-
19,881
2,217,444
Addition from business combination
28,507
7,071
-
35,578
Additions - ROU
-
-
6,504
6,504
Reclassification from asset held for sale
87,641
-
-
87,641
Depreciation charge
-
(1,138)
(3,190)
(4,328)
Net book value
2,313,711
5,933
23,195
2,342,839
As at 30 September 2024
Cost or fair value
2,313,711
7,072
28,612
2,349,395
Accumulated depreciation
-
(1,139)
(5,417)
(6,556)
Net book value
2,313,711
5,933
23,195
2,342,839
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
94
Zambeef Products PLC
13
Leases
The Group leases various offices and retail stores (classified as buildings) and farm and production equipment and trailers
(classified as plant and machinery). Lease agreements do not impose any covenants other than the security interests in the
leased assets that are held by the lessor.
a)
Lease liabilities
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Current
8,578
6,448
8,578
6,288
Non-current
13,350
15,622
13,350
7,403
21,928
22,070
21,928
13,691
Refer to Note 29 (ii) for details on the movement in lease liabilities on the statement of financial position.
ii)
Amounts recognised in the statement of profit or loss
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Depreciation charge:
5,480
6,095
4,328
2,683
Interest expense on lease liabilities
3,437
2,676
3,322
1,312
Expense relating to short-term leases
28,346
17,929
28,346
759
37,263
26,700
35,996
4,754
During the year, there were no expenses relating to low-value assets and variable lease payments recognised
in profit or loss (2023: Nil).
iii)
Maturity analysis of contractual lease payments outstanding
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Within 1 year
11,223
2,038
11,223
759
Between 1 and 2 years
7,430
17,172
7,430
14,244
Between 2 and 3 years
4,137
1,972
4,137
-
Between 3 and 4 years
1,988
1,976
1,988
-
Between 4 and 5 years
1,279
1,988
1,279
-
Later than 5 years
4,726
6,005
4,726
-
Minimum lease payments
30,783
31,151
30,783
15,003
Finance charges
(8,855)
(9,081)
(8,855)
(1,312)
Net present value
21,928
22,070
21,928
13,691
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
95
Zambeef Products PLC
14.
Goodwill
Goodwill is monitored by management at the level of the two cash-generating units (CGU). A CGU-level summary of the
goodwill allocation is presented below:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Masterpork Limited
15,699
15,699
15,699
-
Zamhatch Limited
9,316
9,316
-
-
25,015
25,015
15,699
-
The following table sets out the key assumptions for those CGUs that have significant goodwill allocated to them:
Masterpork
Zamhatch
Year ended 30 September 2024
Budgeted average operating margins
3%
12%
Discount rates
31.7%
31.7%
Long-term growth rate
13.9%
13.9%
Year ended 30 September 2023
Budgeted average operating margins
2%
17%
Discount rates
27.4%
27.4%
Long-term growth rate
12.0%
12.0%
Management has determined the values assigned to each of the above key assumptions as follows:
•
Budgeted operating margins: Based on past performance and management’s expectations for the future;
•
Discount rates: Reflect specific risks relating to the relevant segments and the countries in which they operate;
•
Long-term growth rate: This is the weighted average growth rate used to extrapolate cash flows beyond the budget
period.
Masterpork
Zamhatch
Year ended 30 September 2024
K’000
K’000
Budgeted average operating margins (-2%)
(49,854)
(202,998)
Discount rates (+1%)
(3,895)
(71,836)
Long-term growth rate (-2%)
(2,981)
(75,308)
Year ended 30 September 2023
Budgeted average operating margins (-2%)
(4,038)
(201,364)
Discount rates (+1%)
(26,149)
(36,611)
Long-term growth rate (-2%)
(25,925)
(82,507)
The recoverable amount of the cash generating unit (CGU) calculated based on value in use exceeded the carrying value
of the net assets as follow:
2024
2023
K’000
K’000
Masterpork Limited
13,267
98,972
Zamhatch Limited
618,979
403,441
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
96
Zambeef Products PLC
15
Investment in subsidiaries
a) Subsidiaries
The Group’s investments in subsidiaries at 30 September are set out below.
Subsidiary
2024
2023
K’000
K’000
Investment in subsidiaries
104,020
104,020
Business combination adjustment (note 35)
(26,682)
-
77,388
104,020
Breakdown of investment in subsidiaries
2024
2023
K’000
K’000
Zambeef Retailing Limited
-
31
Zamleather Limited
1,477
1,477
Master meat (Nigeria) Ltd
216
216
Master meat (Ghana) Ltd
1,310
1,310
Masterpork Limited
-
26,601
Zamchick Limited
16,443
16,443
Zamhatch Limited
57,942
57,942
77,388
104,020
Unless otherwise stated, the entities have share capital consisting solely of ordinary shares that are held directly by
the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The country of
incorporation or registration is also their principal place of business.
Name of subsidiary
Place of
incorporation
Ownership
interest
Principal activities
2024
2023
Zamleather Limited
Zambia
100%
100%
Processing and sale of leather & shoes
Master meat (Nigeria) Ltd
Nigeria
80%
80%
Processing and sale of meat products
Master meat (Ghana) Ltd
Ghana
90%
90%
Processing and sale of meat products
ZamChick Limited
Zambia
100%
100%
Processing and sale of poultry products
Zamhatch Limited
Zambia
100%
100%
Chicken breeding, rearing and production of
stock feed
Zambeef Retailing Limited
Zambia
-
100%
Retailing of Zambeef products
Masterpork Limited
Zambia
-
100%
Processing and sale of pork products
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
97
Zambeef Products PLC
15.
Investment in subsidiaries (continued)
a)
Non-controlling interest (NCI)
Nigeria - Master Meat Ltd
Ghana - Master Meat Ltd
2024
2023
2024
2023
Statement of profit or loss
K’000
K’000
K’000
K’000
Revenue
131,681
224,925
45,910
42,273
Profit/(loss) for the year
1,545
7,415
(527)
1,227
Other comprehensive income
-
-
-
-
Total comprehensive income
1,545
7,415
(527)
1,227
Profit/(loss) allocated to NCI
309
1,483
(53)
123
Dividends paid to NCI
-
-
-
-
Statement of financial position
Current assets
16,052
25,756
3,872
5,117
Current liabilities
(102,798)
(85,891)
(4,766)
(4,456)
Net current (liabilities)/assets
(86,746)
(60,135)
(894)
661
Non-current assets
10,672
12,182
744
659
Non-current liabilities
-
-
(153)
(153)
Net non-current assets
10,672
12,182
591
506
Net (liabilities)/assets
(76,074)
(47,953)
(303)
1,167
Accumulated NCI
(15,215)
(7,095)
(30)
259
Statement of cash flows
Cash flows in operating activities
1,545
7,415
(527)
1,227
Cash flows in investing activities
-
(417)
-
(11)
Cash flows from financing activities
-
-
-
-
Net increase/(decrease) in cash
1,545
6,998
(527)
1,216
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
98
Zambeef Products PLC
16
Investment in associates
Set out below is the associate of the Group as at 30 September 2024 which, in the opinion of the Directors, is material to the
Group. The entity has share capital consisting solely of ordinary shares, which are held directly by the Group. The country of
incorporation or registration is also the entity’s principal place of business, and the proportion of ownership interest is the
same as the proportion of voting rights held.
Entity
Place of incorporation
Ownership interest
Nature of relationship
2024
2023
Zampalm Limited
Zambia
10%
10%
Associate
Zampalm Limited’s principal activity is the establishment of a palm oil plantation and processing plant and the production
of crude palm oil. The company is still in the developmental stage and is expected to start generating profits in 2024. As at
the end reporting date, the Group had a 10% equity interest in Zampalm Limited. The Group has reasonable influence over
Zampalm Limited as it has representation on the Board of Directors, participates in policy making decisions and provides
essential farming technical information.
The group has impaired its investment in Zampalm based on the lower than expected projections of the palm tree yields and
the consequent lower production levels of palm oil.
The Group had no commitments and contingent liabilities in respect of the associate (2023: Nil).
16
Investment in associates (continued)
i)
Summarised financial information for associate
The information disclosed below reflects the amounts presented in the annual financial statements statements of the
relevant associate, Zampalm Limited and not the Group’s share of those amounts.
2024
2023
Statement of profit or loss:
K’000
K’000
Revenue
2,861
1,791
Loss from continuing operations
(11,212)
(25,954)
Loss for the year
(11,212)
(25,954)
Other comprehensive income
-
-
Total comprehensive income
(11,212)
(25,954)
Statement of financial position:
Non-current assets
263,899
270,120
Current assets
6,301
10,504
Total assets
270,200
280,624
Capital and reserves
16,502
46,662
Non-current liabilities
229,522
209,588
Current liabilities
24,176
24,374
Total equity and liabilities
270,200
280,624
ii)
Reconciliation of carrying amounts:
At start of year
34,370
36,965
Share of loss for the year
-
(2,595)
Impairment of investment in associate
(34,370)
-
At end of year
-
34,370
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
99
Zambeef Products PLC
17
Biological assets
The Group’s biological assets comprise standing crops (wheat, maize and soya), feedlot cattle, dairy cattle and chickens.
i)
Analysis by group of biological assets
Group
Standing
crop
Feedlot
cattle
Dairy
cattle
Chickens
Total
K’000
K’000
K’000
K’000
K’000
As at 30 September 2023
At start of year
67,981
115,077
86,592
51,046
320,696
Increase due to purchases
453,357
273,635
1,664
69,078
797,734
Change in fair value of biological assets:
Due to biological transformation
411,146
113,501
44,328
70,379
639,354
Due to price changes
-
-
-
3,843
3,843
411,146
113,501
44,328
74,222
643,197
Transfer of harvest to inventory
(823,648)
-
-
-
(823,648)
Decrease due to slaughter/sale
-
(378,653)
(9,225)
(141,703)
(529,581)
At end of year
108,836
123,560
123,359
52,643
408,398
Current
108,836
123,560
-
52,643
285,039
Non-current
-
-
123,359
-
123,359
108,836
123,560
123,359
52,643
408,398
As at 30 September 2024
At start of year
108,836
123,560
123,359
52,643
408,398
Increase due to purchases
551,172
332,191
2,570
112,660
998,593
Change in fair value of biological assets:
Due to biological transformation
690,333
177,448
31,281
98,656
997,718
Due to price changes
-
-
-
8,114
8,114
690,333
177,448
31,281
106,770
1,005,832
Transfer of harvest to inventory
(1,248,939)
-
-
-
(1,248,939)
Decrease due to slaughter/sale
-
(515,796)
(13,238)
(193,955)
(722,989)
At end of year
101,402
117,403
143,972
78,118
440,895
Current
101,402
117,403
-
78,118
296,923
Non-current
-
-
143,972
-
143,972
101,402
117,403
143,972
78,118
440,895
All assets disclosed are pledged as security on the Group’s borrowings for each reporting period and title is restricted.
There were no commitments for the development or acquisition of biological assets.
For standing crops, contributory asset charges have been incorporated into the fair value of the biological assets.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
100
Zambeef Products PLC
17
Biological assets (continued)
i)
Analysis of group of biological assets (continued)
Company
Standing
crop
Feedlot
cattle
Dairy
cattle
Total
K’000
K’000
K’000
K’000
As at 30 September 2023
At start of year
67,981
115,077
86,592
269,650
Increase due to purchases
453,357
273,635
1,664
728,656
Change in fair value of biological assets:
Due to biological transformation
411,146
113,501
44,328
568,975
Due to price changes
-
-
-
-
411,146
113,501
44,328
568,975
Transfer of harvest to inventory
(823,648)
-
-
(823,648)
Decrease due to slaughter/sale
-
(378,653)
(9,225)
(387,878)
At end of year
108,836
123,560
123,359
355,755
Current
108,836
123,560
-
232,396
Non-current
-
-
123,359
123,359
108,836
123,560
123,359
355,755
As at 30 September 2024
At start of year
108,836
123,560
123,359
355,755
Increase due to purchases
551,172
332,194
2,570
885,936
Change in fair value of biological assets:
Due to biological transformation
690,333
177,448
31,281
899,062
Due to price changes
-
-
-
-
690,333
177,448
31,281
899,062
Transfer of harvest to inventory
(1,248,939)
-
-
(1,248,939)
Decrease due to slaughter/sale
-
(515,796)
(13,238)
(529,034)
At end of year
101,402
117,406
143,972
362,780
Current
101,402
117,406
-
218,808
Non-current
-
-
143,972
143,972
101,402
117,406
143,972
362,780
All assets disclosed are pledged as security on the Group’s borrowings for each reporting period and title is restricted.
There were no commitments for the development or acquisition of biological assets.
For standing crops, contributory asset charges have been incorporated into the fair value of the biological assets.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
101
Zambeef Products PLC
17
Biological assets (continued)
ii)
Number of hectares and livestock
As at 30 September, the Group had the following number of hectares and livestock
Group
Company
2024
2023
2024
2023
Number of hectares
Standing crop
1,375
1,172
1,375
1,172
Number of livestock
Feedlot cattle
11,134
9,612
11,134
9,612
Dairy cattle
3,915
3,685
3,915
3,685
Chickens
517,145
220,856
-
-
Culled animals
Feedlot cattle
36,365
30,462
36,365
30,462
Dairy cattle
818
544
818
544
Chickens
5,151,987
4,018,464
-
-
iii)
Key assumptions
The significant assumptions in the determination of the fair value of biological assets are the average weight per
animal and average yield per hectare for standing crop. The assumptions used for the valuation of the biological assets
are as follows:
Group
Company
2024
2023
2024
2023
Average weight - kg
Bulls
418
456
418
456
Heifers
343
322
343
322
Steers
372
333
372
333
Cows
515
437
515
437
Chickens
1.85
1.85
-
-
Average yields per hectare - tons
Wheat
7.25
6.78
7.25
6.78
Soya
2.59
2.79
2.59
2.79
iv)
Sensitivity
The sensitivity of the biological assets to changes in the weighted principal assumptions is:
Impact on biological assets
Group
Company
2024
2023
2024
2023
Change in assumption
K’000
K’000
K’000
K’000
Average weight (-1%)
(2,244)
(1,557)
(2,244)
(1,557)
Average yields per hectare (-1%)
(1,271)
(911)
(1,271)
(911)
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
102
Zambeef Products PLC
18
Inventory
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Trading stocks
195,033
565,225
143,860
427,028
Abattoir stocks
17,995
31,700
17,995
31,700
Raw materials
934,466
451,405
896,462
172,969
Stock feed
644,798
439,190
627,572
397,428
Consumables
279,835
156,707
243,647
75,352
Raw hides and chemicals
16,651
12,260
-
-
2,088,778
1,656,487
1,929,536
1,104,477
Inventories recognised as an expense
4,652,725
3,739,698
4,221,396
1,948,055
19
Trade and other receivables
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Trade receivables
144,639
113,734
88,758
40,645
Loss allowance (Note 4(b))
(14,246)
(19,226)
(9,919)
(10,653)
130,393
94,508
78,839
29,992
Amounts due from related parties (Note 32)
298
3,248
167,081
1,055,062
Loans receivable (Note 32)
-
-
95,123
75,339
Prepayments
24,669
16,997
21,790
10,629
Other receivables
190,770
217,950
109,454
106,420
346,130
332,703
472,287
1,277,442
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.
As at the end of the reporting period, there were no trade receivables subject to a factoring arrangement (2023: Nil).
20
Cash and cash equivalents
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Cash at bank and in hand
334,415
271,222
292,763
209,854
The above figures reconcile to the amount of cash shown in the statement of cash flows at the end of the financial year as
follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Balances as above
334,415
271,222
292,763
209,854
Bank overdrafts (Note 25)
(722,280)
(651,689)
(722,280)
(462,010)
Balances per statement of cash flows
(387,865)
(380,467)
(429,517)
(252,156)
As at the reporting period, there were no deposits at call nor any restricted cash.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
103
Zambeef Products PLC
21
Discontinued operations
The Chiawa Farm unit was classified as an asset held for sale in the previous year as management had decided to sell the farm
and had been actively marketing the farm. The probable sale did not materialize due to a number of factors including changes
in the macro economic environment.
Financial information relating to the discontinued operation for the year is set out below.
i)
Financial performance
2024
2023
K’000
K’000
Revenue
-
152,466
Expenses
-
(163,070)
Loss before income tax
-
(10,604)
Income tax expense
-
-
Loss for the year
-
(10,604)
Other comprehensive income
-
-
Total comprehensive income for the year
-
(10,604)
ii)
Cashflow information
Net cash inflow in operating activities
-
(10,604)
Net cash inflow in investing activities
-
-
Net cash from financing activities
-
-
Net decrease in cash generated by the farm
-
(10,604)
iii)
Assets and liabilities of disposal group classified as held for sale
The following assets were reclassified as held for sale in relation to the assets classified as held for sale:
2024
2023
K’000
K’000
Assets classified as held for sale
Property plant and equipment
157,640
170,091
Transfers
-
(5,540)
Depreciation charge
-
(6,911)
Reclassed to fixed assets (Note 12)
(157,640)
-
-
157,640
There were no liabilities directly associated with assets classified as held for sale during the year (2023: Nil).
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
104
Zambeef Products PLC
22
Share capital and share premium
2024
2023
2024
2023
Shares
Shares
K’000
K’000
Ordinary shares
Authorised
700,000,000
700,000,000
7,000,000
7,000,000
Issued and fully paid
300,579,630
300,579,630
3,006
3,006
Share premium
1,125,012
1,125,012
1,125,012
1,125,012
Preference shares
Authorised and issued -fully paid
100,057,658
100,057,658
1,000
1,000
i)
Ordinary shares
Ordinary shares have a par value of K0.01. They entitle the holder to participate in dividends, and to share in the
proceeds of winding up the Group in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting, in person or by proxy, is entitled to one vote,
and on a poll each share is entitled to one vote. Of the 300,579,630 issued and fully paid shares, 137,675,979 are held
by shareholders on the AIM on the London Stock Exchange and 162,903,611 are held by shareholders on the Lusaka
Stock Exchange.
ii)
Preference shares
The Company’s largest ordinary shareholder, British International Investment (BII), is also the holder of all the
100,057,658 convertible redeemable preference shares in issue (the “Preference Shares”) (par value of K0.01). These
Preference Shares have four voting rights for every five Preference Shares held resulting in BII currently having
approximately 34.8% of the total voting rights in the Company. The Preference Shares are convertible in whole or
in part by BII into ordinary shares on a one-for-one basis until 16 September 2024 (the “Eighth Anniversary”), and if
converted after the Eighth Anniversary, on the basis of one Preference Share into 3.0833 new ordinary shares. Should
in future BII convert all of their Preference Shares on the basis of one for 3.0833 new ordinary shares, their ordinary
shareholding would increase.
As at 30 September, BII did not exercise its conversion rights. Accordingly for so long as BII does not exercise its
conversion rights and continues to hold the Preference Shares after the Eighth Anniversary, BII’s voting rights
remained unchanged, with four voting rights for every five Preference Shares held, together with one vote for each
ordinary share held, resulting in BII continuing to hold approximately 34.8% of the total voting rights in the Company.
The Company has the right to redeem all or part of the Preference Shares at the redemption price, which will give
BII a 12% compounded annual return on their investment, subject to a minimum of USD 0.77 per Preference Share
(less dividends received to date). The zero-coupon Preference Shares receive a dividend only if a dividend is paid to
ordinary shareholders, and in such cases, the dividend per Preference Share will be the same as that for ordinary
shares.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
105
Zambeef Products PLC
23
Foreign currency translation reserve
This represents the accumulated foreign exchange differences arising from the translation of foreign retail
operations in Nigeria and Ghana. For the Company, the reserve arose from the translation of Mpongwe Farms which were
foreign denominated up until 31 December 2021. The reserves are non-distributable.
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
At start of year
660,390
692,705
687,048
687,048
Translation differences - foreign operations
(35,821)
(40,617)
-
-
Less translation difference - NCI
8,871
8,302
-
-
At end of year
633,440
660,390
687,048
687,048
24
Revaluation reserve
Items of property, plant and equipment are recognised at fair value based on periodic, but at least triennial valuations
performed by external independent valuers, less subsequent depreciation. The reserve is used to record increments and
decrements on the revaluation of non-current assets. The fair value of property, plant and equipment was revalued on 30
September 2021 by Messrs, Fairworld Properties Limited.The reserves are non-distributable to the shareholders and are
recognised net of deferred income tax. Leasehold land was revalued on 30 September 2023 by Messrs, Fairworld Properties
Limited.
In the event of a sale of an asset, any balance in the reserve in relation to the asset is transferred to retained earnings.
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
At start of year
1,964,087
1,113,119
1,561,799
712,279
Additions through business combinations (Note 35)
-
-
197,599
Revaluation surplus (Note 12)
5,734
1,003,412
-
977,426
Excess depreciation
(49,059)
(53,928)
(40,170)
(30,155)
Deferred income tax (Note 26)
133,328
(98,516)
128,455
(97,751)
At end of year
2,054,090
1,964,087
1,847,683
1,561,799
25
Borrowings
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Non-Current
Bank loans
856,362
687,679
856,362
687,679
Current
Bank loans
803,391
321,138
803,391
321,138
Bank overdrafts
722,280
651,689
722,280
462,010
1,525,671
972,827
1,525,671
783,148
2,382,033
1,660,506
2,382,033
1,470,827
Refer to Note 30 (ii) for details on the movement in borrowings on the statement of financial position.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
106
Zambeef Products PLC
25
Borrowings (continued)
i)
Bank loans
Standard Chartered Bank Zambia Plc
The Group has a structured agricultural facility with an annual revolving limit. The purpose of the facility is the
financing of wheat, soya beans and maize under collateral management agreements. Interest on the facility is SOFR
plus 4.45 per cent per annum calculated on the daily overdrawn balances. The facility is secured by a fixed and floating
charge over grain stocks of wheat, soya beans and maize and is repayable in 270 days. As at the end of the reporting
period, the effective interest rate was 9.28 % (2023: 9.77%).
International Finance Corporation (IFC)
The Group has an eight (8) year Kwacha loan facility with the IFC. Interest is fixed at 16 per cent per annum. The loan
is secured through a first ranking legal mortgage over R/E of Farm No. 4450, R/E of Farm No. 4451 & R/E of Farm No.
5388 (Mpongwe farm) and is fully repayable in June 2030. The First ranking legal mortgage ranks pari passu with Absa
Bank Zambia Plc. As at the end of the reporting period, the effective interest rate was 16 % (2023: 16%).
Stanbic Bank Zambia Limited
The Group has a seasonal loan facility with an annual revolving limit. Interest on the facility is 8.5 per cent. above
the Bank of Zambia policy rate per annum payable monthly in arrears. This facility is secured by a floating charge/
debenture over all the assets of the Group. The floating charge/debenture ranks pari passu with Standard Chartered
Bank Zambia Plc. The loan is repayable by July 31st in respect of summer cropping and January 31st in respect of
Winter Cropping.
As at the end of the reporting period, the effective interest rate was 22.0 % (2023: 18.5%).
Absa Bank Zambia Plc
The Group has an amortizing loan at an interest rate of Bank of Zambia policy rate plus 6.5%. The facility is secured
through a first ranking legal mortgage over R/E of Farm No. 4450, R/E of Farm No. 4451 & R/E of Farm No. 5388
(Mpongwe farm). The first ranking charge ranks pari passu with the International Finance Corporation (IFC) and is
repayable in February 2026. As at the end of the reporting period, the effective interest rate was 19.5% (2023:16.0%).
The Group also has a revolving loan facility at an interest rate of Bank of Zambia policy rate plus 8.25% margin.
Interest is payable in quarterly instalments. This facility is secured by floating debenture over all assets of the group.
The floating debenture ranks pari passu with other local lenders. The loan is repayable by 31st March 2025.
The Group has a short- term working capital facility at an interest rate of Bank of Zambia Policy Rate plus 5.5%.
Interest is payable monthly. This facility is secured by floating debenture over all assets of the group. The floating
debenture ranks pari passu with other local lenders. The maximum tenor for each drawing is 12 months, with the first
drawing falling due for repayment by 31st May 2025.
ZANACO Plc
The Group has an amortizing five year loan facility at an interest rate of Bank of Zambia policy rate plus 6.0%. The
facility is secured through a first legal mortgage over Plot no 4970 Manda road Lusaka and a floating debenture over
Zambeef’s assets ranking pari passu with Standard Chartered Bank, Stanbic Bank and Citibank. The loan is repayable
in July 2028. As at the end of the reporting period, the effective interest rate was 19.5% (2023:16.0%).
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
107
Zambeef Products PLC
25
Borrowings (continued)
ii)
Bank-overdrafts
The Group has annual revolving bank overdraft facilities held with various banks namely, Zambia National Commercial
Bank, Stanbic Bank Zambia Limited, Citi Bank Zambia Limited, Standard Chartered Bank Zambia Limited and First
National Bank.
Interest on the bank overdrafts are payable at, in respect of ZMW limits, the prevailing Bank of Zambia (BOZ)
Monetary Policy Rate plus a liquidity premium and a margin ranging from 3.5 % to 7.5% and in respect of USD limits,
the prevailing SOFR rate plus a margin ranging from 3.5% to 4%. As at the end of the reporting period, the average
effective interest rate was 14.14% (2023: 12.65%).
The bank overdrafts and Short-term seasonal loan facilities are secured by a floating charge/debenture over all the
assets of the Group with a security cover of 125 per cent. of limits. The floating charge/debenture ranks pari passu
between ABSA, Standard Chartered Bank Zambia Plc, Citibank Zambia Limited, Zanaco Bank Plc, Stanbic Bank
Zambia Limited and First National Bank (FNB).
iii)
Compliance with loan covenants
Target
2024
2023
Interest cover ratio: (EBITDA/Interest charges)
>2.5
2.7
3.4
Current ratio: (Current assets/Current liabilities)
>1.3
1.1
1.3
Debt service cover ratio: (EBITDA/Debt service)
>1.5
1.8
2.7
Net debt to EBITDA ratio (Total debt- cash)/EBITDA)
<3.0
2.9
2.5
Loan to covenant value (Total debt/Total assets)
<130%
7%
7%
Liabilities to tangible net worth ratio (Total liabilities/(Equity-Goodwill-
Deferred tax)
<1.0
0.8
0.6
At the end of the reporting period, the Group breached the target current ratios for Stanbic and IFC. Per the
loan agreements, there are no consequences for breach of financial covenants as this is restricted to lack of debt
repayments. The company has informed the lenders on the remedial measures to be taken in order to resolve the
breach..
iv)
Fair value
For the majority of the borrowings, the fair values are not materially different from their carrying amounts, since
either:
- the interest payable on those borrowings is close to current market rates, or
- the borrowings are of a short-term nature.
Material differences are identified only for the following borrowings:
Group
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Carrying
amount
Fair value
Carrying
amount
Fair value
Bank loans
2,809,638
511,286
2,020,918
422,660
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Carrying
amount
Fair value
Carrying
amount
Fair value
Bank loans
2,809,638
511,286
1,831,239
422,660
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
108
Zambeef Products PLC
26
Deferred income tax
Deferred income tax is calculated using the enacted income tax rate of range of 10% to 30% depending of the activity of the
entities within the Group. The movement on the deferred income tax account is as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
At start of year
302,017
223,217
220,829
140,280
Additions through business combination (Note 35)
(1,893)
-
46,077
(Credit)/charge in profit or loss
(12,210)
(19,716)
(30,187)
(17,202)
Charge/(credit) in equity
(133,328)
98,516
(128,455)
97,751
At end of year
154,586
302,017
108,264
220,829
Deferred tax assets and liabilities in each jurisdiction are offset as there is a legally enforceable right to offset current tax assets
and liabilities and the deferred tax balances where these relate to the same taxation authority.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
109
Zambeef Products PLC
26
Deferred income tax (continued)
Deferred income tax assets and liabilities and deferred income tax charge/(credit) in profit or loss and equity are attributable
to the following items.
At start of
year
Business
Combination
Profit or
loss
Equity
At end of
year
Group
K’000
K’000
K’000
K’000
K’000
Year ended 30 September 2024
Deferred income tax liabilities
Property, plant and equipment
111,311
-
(28,678)
-
82,633
Revaluation surplus
246,301
-
(133,328)
112,973
Change in fair value of biological assets
40,331
-
(47)
-
40,284
Deferred income tax assets
Tax losses carried forward
(39,454)
-
8,585
-
(30,869)
Defined benefit obligation
(13,185)
-
1,097
-
(12,088)
Other temporary differences
(43,287)
(1,893)
6,833
-
(38,347)
302,017
(1,893)
(12,210)
(133,328)
154,586
Year ended 30 September 2023
Deferred income tax liabilities
Property, plant and equipment
118,966
-
(7,655)
-
111,311
Revaluation surplus
148,692
-
-
97,609
246,301
Change in fair value of biological assets
31,564
-
8,767
-
40,331
Deferred income tax assets
Tax losses carried forward
(32,565)
-
(6,889)
-
(39,454)
Defined benefit obligation
(12,069)
-
(2,023)
907
(13,185)
Other temporary differences
(31,371)
-
(11,916)
-
(43,287)
223,217
-
(19,716)
98,516
302,017
Company
Year ended 30 September 2024
Deferred income tax liabilities
Property, plant and equipment
72,776
20,233
(39,508)
-
53,501
Revaluation surplus
176,902
49,310
-
(129,317)
96,895
Change in fair value of biological assets
35,570
-
(753)
-
34,817
Deferred income tax assets
Tax losses carried forward
(36,559)
-
5,358
-
(31,201)
Defined benefit obligation
(3,341)
(2,160)
888
862
(3,751)
Other temporary differences
(24,519)
(21,306)
3,828
-
(41,997)
220,829
46,077
(30,187)
(128,455)
108,264
Year ended 30 September 2023
Deferred income tax liabilities
Property, plant and equipment
74,759
-
(1,983)
-
72,776
Revaluation surplus
79,151
-
-
97,734
176,885
Change in fair value of biological assets
26,966
-
8,604
-
35,570
Deferred income tax assets
Tax losses carried forward
(27,483)
-
(9,076)
-
(36,559)
Defined benefit obligation
(3,166)
-
(175)
17
(3,324)
Other temporary differences
(9,947)
-
(14,572)
-
(24,519)
140,280
-
(17,202)
97,751
220,829
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
110
Zambeef Products PLC
27
Defined benefit obligations
The Group awards terminal benefits to its employees upon retirement. This scheme is unfunded, and the statutory entitlement,
which is lost if the employee is summarily dismissed, becomes payable only when the employee retires after attaining the age of
55 years and that employee has been employed for more than ten years.
The regulator, Pensions and Insurance Authority, does not regulate gratuity schemes such as this one. However, entities that
provide an additional and separate unfunded gratuity in their annual financial statements should operate within the governing
covenants and agreements with employee representative bodies. Taxation of this scheme falls under the framework and
administration of this arrangement, including decisions as to whether to prefund the benefit costs, or amend the arrangement
design.
The Group’s accrued liability in respect of each employee is the present value of the benefits in respect of service completed to
the valuation date but based on projected earnings to retirement or date of payment. The total accrued liability (or the required
provision) at the valuation date is a summation of the accrued liability in respect of each employee.
i)
Amounts recognised in statement of financial position
The amounts recognised in the statement of financial position and the movements in the net defined benefit obligation
over the year are as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
At start of year
1,631
3,654
902
366
Additions through business combination
-
-
729
Current service cost
77
70
77
39
Past service cost
-
213
-
117
Interest cost
201
348
201
193
Amount recognised in profit or loss
278
631
278
349
Actuarial remeasurements
-
Change in demographic assumptions
-
-
-
-
Change in financial assumptions
349
(580)
349
(321)
Early settlement (gains)/losses
2,157
700
2,157
509
Experience adjustment
17
648
17
237
Amount recognised in equity
2,523
768
2,523
425
Benefit payments
(2,597)
(3,422)
(2,597)
(238)
Per statement of financial position
1,835
1,631
1,835
902
Present value of unfunded obligation
1,835
1,631
1,835
902
ii)
Actuarial assumptions
The significant actuarial assumptions in the determination of the defined benefit obligation are the discount rate,
the salary growth rate and the average life expectancy. The assumptions used for the valuation of the defined benefit
obligation are as follows:
Group
Company
2024
2023
2024
2023
Discount rate
28%
28%
28%
28%
Salary growth rate
19%
14%
14%
14%
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
111
Zambeef Products PLC
27
Defined benefit obligations (continued)
ii)
Actuarial assumptions (continued)
Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics
and experience in the local environment. These assumptions translate into an average life expectancy in years for a
pensioner retiring at age 60:
Probability of reaching retirement age in service
Group
Company
2024
2023
2024
2023
Average life expectancies:
25 years of age at reporting date
47%
47%
47%
47%
30 years of age at reporting date
57%
57%
57%
57%
35 years of age at reporting date
66%
66%
66%
66%
40 years of age at reporting date
72%
72%
72%
72%
45 years of age at reporting date
78%
78%
78%
78%
50 years of age at reporting date
86%
86%
86%
86%
iii)
Risk exposure
The Group is exposed to a number of risks, the most significant of which are detailed below:
Changes in bond yields
The plan liabilities are calculated using a discount rate set with reference to Zambian government bond yields. A decrease
in government bond yields will increase the plan liabilities.
Changes in salaries
The plan benefits are calculated with reference to employees’ salaries. An increase in salaries will increase the plan
liabilities. This risk becomes higher as the expectations of short-term inflation rise increase, due to the weakened
strength of the Zambian Kwacha against other currencies.
Life expectancy
The plans’ obligations are to provide benefits for the life of the member. Therefore, increases in life expectancy will result
in an increase in the plans’ liabilities.
Liquidity
The plan is unfunded and therefore there is a risk that resources may not be available when needed to pay the benefits
as they fall due.
iv)
Sensitivity
The sensitivity analysis is based on changes in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of the
reporting period) has been applied as when calculating the defined benefit liability recognised in at end of the reporting
period.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
112
Zambeef Products PLC
27
Defined benefit obligations (continued)
iv)
Sensitivity (continued)
The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Impact on defined benefit obligation
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Discount rate (-1%)
76
60
76
33
Salary growth rate (+1%)
85
71
85
39
life expectancy (-1 year)
(172)
(846)
(172)
(423)
The scheme does not have any assets and therefore benefits are met as they become due. The weighted average
duration of the defined benefit obligation is 9.1 years (2023: 9.4 years).
v)
Maturity analysis
The expected maturity analysis of undiscounted pension benefits is as follows:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Within 1 year
-
-
-
-
Between 1 - 2 years
-
-
-
-
Between 2 - 5 years
496
1,113
496
275
Over 5 years
2,864
518
2,864
1,889
3,360
1,631
3,360
2,164
28
Trade and other payables
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Trade payables
520,760
432,668
469,968
223,190
Amounts due to related parties
(Note 31)
-
-
364,835
390,103
Gratuity and leave pay accruals
146,270
117,538
130,747
64,807
Legal and other related claims
179,179
68,977
179,179
68,977
Statutory liabilities
12,087
21,428
6,326
7,303
Other payables
59,378
193,580
21,911
131,646
917,674
834,191
1,172,966
886,026
Trade payables are unsecured and are usually paid within 30 days of recognition. Gratuity and leave pay provisions are paid
as and when they fall due but mainly in December at the end of employee contracts. Legal and other claim are paid within 3
months average of recognition.
The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term
nature.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
113
Zambeef Products PLC
29
Contract liabilities
Contract liabilities relate to advance payments received from customers on grain, day-old chicks, stock feed and other related
products. The Group has recognised the following liabilities related to contracts with customers:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
At start of year
164,063
97,400
94,976
97,400
Revenue recognised from opening liability
(164,063)
(97,400)
(94,976)
(97,400)
Receipts from customer at year end
357,999
164,063
356,672
94,976
At end of year
357,999
164,063
356,672
94,976
During the year, there was no revenue recognised from performance obligations satisfied in previous periods (2023: Nil).
Contract liabilities increased due to the negotiation of larger prepayments and an increase in overall contract activity. All
revenue streams under contract liabilities are for periods of one year. As permitted under IFRS 15, the transaction price
allocated to these unsatisfied performance obligations is not disclosed.
30
Cash flow information
i)
Cash generated from operations
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Profit/(loss) before income tax from:
Continuing operations
192,661
203,673
(11,592)
17,381
Discontinued operations (Note (21(i))
-
(10,604)
-
(10,604)
192,661
193,069
(11,592)
6,777
Adjustments for:
Changes in employee benefits (Note 27(i))
278
631
278
350
Interest expense on leases (Note 9)
3,437
2,462
3,322
1,312
Exchange losses/gains on leases (Note 9)
2,346
1,846
2,118
1,680
Interest expense/capitalised on borrowings
211,132
44,646
211,132
44,646
Interest expense on bank borrowings (Note 9)
118,669
87,323
118,669
57,471
Exchange gains on borrowings (Note 9)
21,398
18,812
21,398
18,812
Loss/(gain) on disposal of assets (Note 7)
(581)
7,756
(326)
(1,040)
Depreciation on property, plant and equipment
210,412
165,699
183,042
73,881
Depreciation on assets held for sale (Note 21 (ii))
-
6,911
-
6,911
Share of loss of associate (Note 16(ii))
-
2,595
-
2,595
Impairment of investment in associate
34,370
-
34,370
-
Change in fair value of biological assets (Note 17)
(1,005,832)
(643,197)
(899,062)
(568,975)
Foreign exchange differences
(35,211)
(33,270)
(1,298)
2,984
(439,582)
(337,786)
(326,357)
(359,373)
Changes in working capital:
Biological assets*
973,335
555,495
892,037
482,870
Inventories**
(432,291)
(214,575)
(388,662)
(126,810)
Trade and other receivables**
(13,427)
(43,403)
1,193,774
(490,922)
Trade and other payables**
81,590
184,618
(1,374,713)
518,212
Contract liabilities
193,936
66,663
261,695
(2,424)
803,143
548,798
584,131
380,926
Cash generated from operations
556,222
404,081
246,182
28,330
*The movement in biological assets excludes the change in fair value of biological assets already adjusted for.
** The changes in working capital have taken into account the balances arising from the business combination by
incorporating prior year numbers into the movement.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
114
Zambeef Products PLC
30
Cash flow information (continued)
ii)
Net debt reconciliation
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Cash and cash equivalents (Note 20)
334,415
271,222
292,763
209,854
Bank loans (Note 25)
(1,659,753)
(1,008,817)
(1,659,753)
(1,008,817)
Bank overdrafts (Note 25)
(722,280)
(651,689)
(722,280)
(462,010)
Lease liabilities (Note 13(a)(iii))
(21,928)
(22,070)
(21,928)
(13,691)
Net debt
(2,069,546)
(1,411,354)
(2,111,198)
(1,274,664)
Group
Liabilities from financing
activities
Net Cash/
(Bank-over-
drafts)
Total
Bank loans
Leases
2023
K’000
K’000
K’000
K’000
At start of year
(599,866)
(17,643)
(127,708)
(745,217)
Additions
(916,396)
(9,900)
(252,759)
(1,179,055)
Interest charged
(44,646)
(2,676)
(87,323)
(134,645)
Principal repayments
526,257
7,319
-
533,576
Interest paid
44,646
2,676
87,323
134,645
Foreign exchange gains
(18,812)
(1,846)
-
(20,658)
At end of year
(1,008,817)
(22,070)
(380,467)
(1,411,354)
2024
At start of year
(1,008,817)
(22,070)
(380,467)
(1,411,354)
Additions
(1,369,057)
(4,953)
(2,272)
(1,376,282)
Interest charged
(148,681)
(3,437)
(118,669)
(270,787)
Interest charged – capitalized
(62,451)
-
-
(62,451)
Principal repayments
739,519
7,441
-
746,960
Interest paid
211,132
3,437
118,669
333,238
Foreign exchange losses
(21,398)
(2,346)
(5,126)
(28,870)
At end of year
(1,659,753)
(21,928)
(387,865)
(2,069,546)
Company
2023
At start of year
(599,866)
(10,232)
(27,876)
(637,974)
Additions
(916,396)
(7,793)
(224,280)
(1,148,469)
Interest charged
(44,646)
(1,312)
(57,471)
(103,429)
Principal repayments
526,257
6,016
-
532,273
Interest paid
44,646
1,312
57,471
103,429
Foreign exchange gains
(18,812)
(1,682)
-
(20,494)
At end of year
(1,008,817)
(13,691)
(252,156)
(1,274,664)
2024
At start of year
(1,008,817)
(13,691)
(252,156)
(1,274,664)
Additions through business com-
bination
-
(7,295)
(164,222)
(171,517)
Additions
(1,369,057)
(6,265)
(1,241)
(1,376,563)
Interest charged - expensed
(148,681)
(3,322)
(118,669)
(270,672)
Interest charged- capitalised
(62,451)
-
-
(62,451)
Principal repayments
739,519
7,441
-
746,960
Interest paid
211,132
3,322
118,669
333,123
Foreign exchange losses
(21,398)
(2,118)
(11,898)
(35,414)
At end of year
(1,659,753)
(21,928)
(429,517)
(2,111,198)
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
115
Zambeef Products PLC
31
Earnings per share (EPS)
Group
2024
2023
Ngwee
Ngwee
Basic earnings per share
Continuing operations
59.83
42.99
Discontinued operations
-
(3.53)
Total basic earnings per share
59.83
39.46
Diluted earnings per share
Continuing operations
44.89
32.25
Discontinued operations
-
(2.65)
Total diluted earnings per share
44.89
29.60
i)
Reconciliations of earnings used in calculating earnings per share
Profit attributable to the ordinary equity holders of the Company used in calculating basic and diluted earnings per share is as
follows:
Group
2024
2023
K’000
K’000
Continuing operations
179,840
129,217
Discontinued operations
-
(10,604)
179,840
118,613
ii)
Weighted average number of shares used as the denominator
2024
2023
shares
shares
Ordinary shares used in calculating basic EPS
300,579,630
300,579,630
Preferences shares
100,057,658
100,057,658
Total weighted average shares used in calculating diluted EPS
400,637,288
400,637,288
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
116
Zambeef Products PLC
32
Related party transactions
The Group is listed on the Lusaka Stock Exchange (LuSE) and has various shareholders. There is no ultimate controlling parent
entity. The major shareholder, British International Investment (BII) Plc which has 17.5% shareholding, is also the holder
of 100,057,658 convertible redeemable preference shares. These shares have four voting rights for every five preference
shares held resulting in BII having 34.8% of the voting rights.
Name
Type
Place of incorporation
Ownership interest
2024
2023
BII plc
Major shareholder
London
17.5%
17.5%
i)
Subsidiaries
Interests in subsidiaries are set out in Note 14.
ii)
Key management personnel compensation
Key management includes Directors (executive and non-executive) and members of senior management. The
compensation paid or payable to key management for employee services is shown below:
Group
Company
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Short-term employee benefits
197,470
169,253
187,303
136,450
Retirement benefit cost - NAPSA
1,428
955
1,377
748
198,898
170,208
188,680
137,198
iii)
Transactions with other related parties
The following transactions occurred with related parties:
Company
2024
2023
K’000
K’000
Sales of:
Beef products
-
1,510,425
Poultry products
315,272
608,374
Pork products
96,871
68,497
Shoe products
3,739
415,882
2,187,296
Purchases of:
Beef products
-
7,236
Poultry products
392,358
69,604
Pork products
-
3,001
Leather products
21,665
3,042
414,023
82,883
The Group sales and purchases transactions are with Director owned companies while for the Company, the
transactions are made with fellow subsidiaries.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
117
Zambeef Products PLC
32
Related party transactions (continued)
iv)
Outstanding balances arising from sales/purchases of goods and services
The following balances are outstanding at the end of the reporting period in relation to transactions with related
parties:
Group
Company
Receivables from:
2024
2023
2024
2023
K’000
K’000
K’000
K’000
Subsidiaries:
Zamleather Limited
-
-
103,365
89,997
Zamhatch Limited
-
-
63,716
512,400
Masterpork Limited
-
-
-
199,227
Zamchick Limted
-
-
-
250,666
Common directorship:
-
-
Java Foods
298
199
-
426
Associates:
-
-
Zampalm Limited
-
3,049
-
2,346
298
3,248
167,081
1,055,062
Payables to:
Subsidiary
Zambeef Retailing Limited
-
-
-
390,103
Zamchick Limited
-
-
364,835
-
Loans receivable
At start of year
-
-
75,339
67,386
Foreign exchange gains
-
19,784
16,746
Loan repayments received
-
-
-
(8,793)
-
-
95,123
75,339
The loans receivable relates to amounts advanced to foreign subsidiaries in Nigeria of K95.1 million (2023: K73.5
million) and Ghana of K2.2 million (2023: K1.8 million) for the purposes working capital requirements. The loans are
unsecured, payable on demand and interest free.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
118
Zambeef Products PLC
32
Related party transactions (continued)
v)
Directors’ remuneration
During the year, the total Directors remuneration for services rendered by Executive Directors and Non-Executive
Directors were as follows:
Name
Position
2024
2023
Faith Mukutu
Executive Director
9,706
8,215
Mboo Mumba
Executive Director
4,167
4,149
Walter Roodt
Executive Director
-
839
Patrick Kalifungwa
Executive Director
898
-
14,771
13,203
Michael Mundashi SC
Non-Executive Director
531
989
Patrick Wanjelani
Non-Executive Director
312
-
Jonathan Kirby
Non-executive Director
686
624
Katebe Monica Musonda
Non-Executive Director
789
624
Pearson Gowero
Non-Executive Director
686
624
Muyangwa Muyangwa
Non-Executive Director
582
219
John Clifford Rich
Non-Executive Director
582
125
4,168
3,205
Total
18,939
16,408
Summary of director’s remuneration
2024
2023
K’000
K’000
Non-executive Director fees
4,168
3,205
Executive Director salaries and short-term emoluments
14,735
13,171
Retirement benefit costs – NAPSA contributions
36
32
18,939
16,408
33
Contingencies
The Group is party to various legal cases whose outcome is dependent on the conclusion of the Zambian judicial process.
Management makes estimates for the outcomes of these cases based on professional advice. There are some cases where,
based on professional advice received, the directors have not made any provision.
The value of potential claims against the Group that would likely result in an unfavourable outcome as at 30 September was
nil (2023: Nil).
34
Commitments
i)
Capital commitments
Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities was K
nil (2023: K83.6 million).
ii)
Operating commitments
Contractual obligation for future purchase of raw materials not recognised as a liability was K nil (2023: Nil).
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
119
Zambeef Products PLC
35
Business combination under common control
On 1st October 2024, Zambeef Products PLC, acquired the assets and liabilities of its wholly owned subsidiaries, Zambeef
Retailing, Master Pork Limited and the feedmill under Zamhatch Limited for purposes of garnering operational efficiencies
and economies of scale of the Company in Zambia. This transaction was approved by the Board of Directors on 22 November
2022.
The predecessor accounting method was applied to the acquisition as it was a common control transaction. Consequently,
the Company took over the carrying value of the assets and liabilities of the two subsidiaries at nil consideration.
The following table summarises the carrying value of the assets and liabilities assumed at the acquisition date, revenue and
profit or loss of the acquirees since the acquisition date included in the statement of profit or loss and other comprehensive
income.
2024
K’000
Identifiable assets acquired and liabilities assumed;
Property plant and equipment
684,892
Inventories
436,397
Trade and other receivables
388,615
Cash and cash equivalent
(164,222)
Share capital/premium + reserves on acquisition
(10,933)
Lease liabilities
(7,293)
Borrowings
(206,846)
Deferred income tax
(44,184)
Trade and other payables
(1,661,651)
Current income tax payable
(10,233)
Net Assets
(599,243)
Restructuring reserve
380,301
Revenue – post acquisition
4,878,175
Profit – post acquisition
2,224,289
36
Events occurring after the reporting period
As at the end of the financial period and date of this report, the Directors are not aware of any item, transaction, or event of
a material and unusual nature likely, in the opinion of the Directors of the Group, to affect substantially the operations of the
Group, the results of its operations or financial position of the Group in subsequent financial years.
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
120
Zambeef Products PLC
Notes to Annual Financial Statements (continued)
For the year ended 30 September 2024
Annual Report 2024
121
Zambeef Products PLC
Supplementary Information -
presented in USD (unaudited)
Annual Report 2024
122
Zambeef Products PLC
Statement of Profit or Loss and Other Comprehensive Income
Group
Company
2024
2023
2024
2023
US$’000
US$’000
US$’000
US$’000
Revenue from contracts with customers
295,113
331,478
279,932
185,549
Change in fair value of biological assets
40,574
35,263
36,267
31,194
Cost of sales of providing goods
(235,844)
(265,685)
(235,044)
(167,044)
Gross profit
99,843
101,056
81,155
49,699
Other income/(expenses)
(2,466)
(2,545)
(2,990)
(1,892)
Net impairment losses on financial assets
(51)
(149)
73
(97)
Impairment of investment in associate
(1,386)
-
(1,386)
-
Distribution expenses
(8,406)
(5,279)
(7,695)
(71)
Administrative expenses
(67,881)
(73,272)
(57,756)
(40,651)
Operating profit
19,653
19,811
11,401
6,988
Net finance income and costs
(11,881)
(1,275)
(11,867)
(364)
Share of loss from equity investment
-
(7,370)
-
(5,670)
Profit before income tax
7,772
11,166
(466)
954
Income tax expense
(407)
(3,994)
735
(861)
(Loss)/profit from continuing operation
7,365
7,172
269
93
Profit from asset held for sale
-
(581)
-
(581)
Profit for the year
7,365
6,591
269
(488)
Profit attributable to:
Owners of Zambeef Products PLC
7,355
6,503
269
(488)
Non-controlling interests
10
88
-
-
7,365
6,591
269
(488)
Other comprehensive income:
Items that maybe reclassified to profit or loss
Translation losses on foreign operations
(1,445)
(2,227)
-
-
Translation losses on Mpongwe Farms
-
-
-
-
Items not reclassified to profit or loss
Revaluation surplus
231
55,012
-
53,587
Actuarial remeasurement losses
(102)
(42)
(102)
(23)
Deferred income tax
5,378
(5,401)
5,181
(5,359)
Other comprehensive income for the year
4,062
47,342
5,079
48,205
Total comprehensive income for the year
11,427
53,933
5,348
47,717
Annual Report 2024
123
Zambeef Products PLC
Statement of Profit or Loss and Other Comprehensive Income (continued)
Group
Company
2024
2023
2024
2023
US$’000
US$’000
US$’000
US$’000
Total comprehensive income for the period is
attributable to:
Owners of Zambeef Products Plc
11,659
54,300
5,348
47,717
Non-controlling interests
(232)
(367)
-
-
11,427
53,933
5,348
47,717
Basic earnings per share
Continued operations
2.41
2.36
Discontinued operations
-
(0.19)
Total basic earnings per share
2.41
2.17
Diluted earnings per share
Continued operations
1.81
1.77
Discontinued operations
-
(0.15)
Total diluted earnings per share
1.81
1.62
Annual Report 2024
124
Zambeef Products PLC
Consolidated Statement of Financial Position
30-Sept-24
30-Sept-23
ASSETS
US$’000
US$’000
Non-current assets
Property, plant and equipment
210,147
229,236
Goodwill
943
1,190
Investment in associate
-
1,635
Biological assets
5,424
5,869
216,514
237,930
Current assets
Biological assets
11,188
13,560
Inventories
78,703
78,805
Trade and other receivables
13,042
15,828
Cash and cash equivalents
12,600
12,903
Current assets excl. assets classified as
held for sale
115,533
121,096
Assets classified as held for sale
-
7,500
Total current assets
115,533
128,596
Total assets
332,047
366,526
EQUITY
Share capital
449
449
Share premium
185,095
185,095
Preference share capital
100
100
Foreign currency translation reserve
23,867
49,843
Revaluation reserve
77,395
51,360
Retained earnings
(99,522)
(64,023)
Attributable to owners of parent entity
187,384
222,824
Non-controlling interests
(574)
(315)
186,810
222,509
LIBILITIES
Non-current liabilities
Borrowings
32,267
32,715
Lease liabilities
503
743
Deferred income tax
5,825
14,368
Defined benefit obligations
69
78
38,664
47,904
Current liabilities
Borrowings
57,486
46,281
Lease liabilities
323
307
Trade and other payables
34,578
39,686
Contract liabilities
13,489
7,805
Current income tax
697
2,034
106,573
96,113
Total equity and liabilities
332,047
366,526
Annual Report 2024
125
Zambeef Products PLC
Company statement of Financial Position
30-Sept-24
30-Sept-23
ASSETS
US$’000
US$’000
Non-current assets
Property, plant and equipment
180,527
171,046
Goodwill
592
-
Investment in subsidiaries
2,916
4,949
Investment in associate
-
1,635
Biological assets
5,424
5,869
189,459
183,499
Current assets
Biological assets
8,244
11,056
Inventories
72,703
52,544
Trade and other receivables
17,795
60,771
Cash and cash equivalents
11,031
9,984
Current assets excl. assets classified as held
for sale
109,773
134,355
Assets classified as held for sale
-
7,500
Total current assets
109,773
141,855
Total assets
299,232
325,354
EQUITY
Share capital
449
449
Share premium
185,095
185,095
Preference share capital
100
100
Foreign currency translation reserve
25,887
42,945
Revaluation reserve
69,619
65,256
Retained earnings
(134,556)
(96,968)
146,594
196,877
LIABILITIES
Non-current liabilities
Lease liabilities
503
352
Borrowings
32,267
32,715
Deferred income tax
4,079
10,506
Defined benefit obligations
69
43
36,918
43,616
Current liabilities
Lease liabilities
323
299
Borrowings
57,486
37,257
Trade and other payables
44,196
42,152
Contract liabilities
13,439
4,518
Current income tax
276
635
115,720
84,861
Total equity and liabilities
299,232
325,354
Annual Report 2024
126
Zambeef Products PLC
Annual Report 2024
127
Zambeef Products PLC
30TH ANNUAL GENERAL
MEETING
Annual Report 2024
128
Zambeef Products PLC
Zambeef Products PLC
(“Zambeef” or the “Group”)
[INCORPORATED IN THE REPUBLIC OF ZAMBIA]
COMPANY REGISTRATION NUMBER: 31824
SHARE CODE: ZAMBEEF
ISIN: ZM0000000201
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the 30th Annual General Meeting of the members of the company will be held
virtually ( https://eagm.creg.co.zw/EAGM/Login.aspx) on the 30th day of December 2024 at 10:00 hours; in respect
of the year ended 30 September 2024.
AGENDA
1.
Minutes of the previous meeting
To receive and note the minutes of the 29th Annual General Meeting held on 29 December 2023 duly approved
by the Chairman in accordance with the Companies Act.
2.
Ordinary Resolutions
Ordinary Resolution No. 1
To receive adopt and approve the reports of the Directors, the Auditors, and the Financial Statements for the
year ended September 30, 2024.
3.
To consider and, if deemed fit, to pass, with or without modification, the following ordinary resolutions;
4.
Ordinary Resolutions to confirm the newly appointed directors
To confirm the appointment of Mr. Patrick Wanjelani who was appointed by the board as a chairman and director
with effect from 19 June 2024 and Mr. Patrick Kalifungwa who was appointed by the board as director with effect
from 1 August 2024.
4.1.1 Ordinary Resolution No. 2 Mr. Patrick Wanjelani
4.1.2 Ordinary Resolution No. 3. Mr. Patrick Kalifungwa
Ordinary Resolutions to re-election of directors retiring by rotation
To re-elect each of Pearson Gowero and Katebe Monica Musonda who retire by rotation in terms of the
Companies Act, and who, being eligible, offer themselves for re-election.
4.1.3 Ordinary Resolution No. 4 Mr Pearson Gowero
4.1.4 Ordinary Resolution No. 5 Ms. Katebe Monica Musonda
The board recommends their re-election to shareholders. Their details are set out in the Annual Report.
4.2
Ordinary Resolution No. 6: Approval of Directors’ Fees
To approve the annual fees payable by the company to the Non-Executive Directors, for the year ending 30
September 2025, unless otherwise determined by the company in a general meeting, to be revised by 15%
Annual Report 2024
129
Zambeef Products PLC
as follows:
x
from K 629 200 to K 723,580 for a Board member;
x
from K 701 800 to K 807,070 for a Board member and Committee Chairperson
x
from K 1 113 200 to K 1,280,180 for the Board Chairman.
4.3
Ordinary Resolution No. 7: Re-appointment of the Independent Auditor
Pursuant to the requirements of sections 257(1) of the Companies Act No. 10 of 2017, and as nominated by
the company’s Audit Committee, to resolve that Messer’s PricewaterhouseCoopers be re-appointed as the
company’s independent registered auditor for the financial year ending 30 September 2025 and to autho-
rise the Directors to determine their remuneration.
5.
Non - Declaration of Final Dividend
Owing to the Group’s ongoing expansion projects, the Directors recommend that no dividend be paid for the finan-
cial year ended September 2024.
It is noted that in terms of the company’s Articles, the company may only declare a dividend if the directors have
recommended a dividend.
6.
Other business
To transact such other business as may be transacted at an annual general meeting of members.
A member entitled to attend and vote at the meeting is entitled to appoint any person (whether a member of the
Company or not) to attend, speak and vote in his/her stead. Proxy forms are obtainable from the Company Sec-
retary or at the Transfer Secretaries offices. The forms must be lodged at the Registered Office of the Company
not less than 48 hours before the commencement of the AGM.
Queries pertaining to shareholder relations such as change of address or bank details are to be channelled
through the Transfer Secretaries, whose contact address is:
Corpserve Transfer Agents Limited
6 Mwaleshi Road, Olympia Park, Lusaka, Zambia
Telephone
: +260 (211) 256969/70
Facsimile
: +260 (211) 256975
Mobile No
: +260 950968435
Email: - info@corpservezambia.com.zm
By Order of the Board
Mwansa M Mutimushi
COMPANY SECRETARY
Annual Report 2024
130
Zambeef Products PLC
NOTES
Key Sign Up Sign-instructions
a).
Sign Up
•
Use the following link to access the platform;
https://eagm.corpservezambia.com.zm/eagm
•
First-time users are required to sign up by clicking the “Sign Up “option.
•
If you registered previously, you do not need to sign up again. Kindly use the same logging credentials
that you used before. If you have forgotten your details, use the “Forgot Password” function on the login
window to retrieve your details.
•
Attendees are to indicate the criteria of their attendance of the provided options i.e. Shareholder/Non-
Shareholder/Proxy
•
Attendees are required to provide the necessary information to complete the sign-up procedure.
•
Once Sign-up has been completed, the admins will validate the information provided before granting
access to attendees. Once validated, login credentials will be delivered through email and SMS. The
validation process may take a maximum period of 48 hours.
b).
Sign in
•
Use the following link to access the platform:
https://eagm.corpservezambia.com.zm/eagm
•
Enter username
•
Enter Password
•
Click Login
•
Click “Zambeef logo” on the landing page to confirm online attendance
•
Enter the token that has been received through your email or SMS on your mobile number captured
when you were signing up on the platform.
•
Click “Join webinar” to begin following video and audio transmission of the meeting proceedings.
Annual Report 2024
131
Zambeef Products PLC
1
PRESENT DIRECTORATE:
Michael Mundashi (Chairman), Faith Mukutu (Chief Executive Officer), Roman Frenkel, Pearson Gowero,
Monica Musonda and Mboo Mumba (Chief Financial Officer).
SECRETARY: Mwansa Mutimushi
(Lists of members present as attached)
2
CALL TO ORDER I QUORUM
A quorum having been met, the meeting was called to order at 10:00 hours.
3
APOLOGIES FOR ABSENCE
Apologies for absence were recorded for Jonathan Kirby and Dr. John Rich.
4
AGENDA
The notice and agenda were adopted as presented.
5
MINUTES OF THE PREVIOUS MEETING
The minutes of the Annual General Meeting of 27 December 2022 were noted.
6
MATTERS ARISING
No matters arose for discussion from the minutes of the previous meeting.
7
THE DIRECTORS' REPORT AND FINANCIAL STATEMENTS
The directors' report, the auditor's report and annual financial statements for the year ended 30 September
2023 were presented.
It was resolved that the directors' report and financial statements for the year ended 30 September 2023 be
approved and adopted and that all matters undertaken and discharged by the directors on behalf of the company
be confirmed.
8
CONFIRMATION AND RE-ELECTION OF DIRECTORS
i.
It was resolved that directors Muyangwa Muyangwa and Dr John Rich who were appointed in the year be
confirmed.
ii.
It was resolved that Messer's Michael Mundashi SC and Jonathan Kirby whose term of office came to an
end and retired by rotation but offered themselves for re-election be re-elected and confirmed as director.
MINUTES OF THE 29TH ANNUAL GENERAL MEETING OF
MEMBERS HELD ON 29TH DECEMBER, 2023 AT 10:00 HOURS AT
THE NEELKANTH SAROVAR PREMIERE HOTEL, LUSAKA AND
VIRTUALLY FROM VARIOUS LOCATIONS
Annual Report 2024
132
Zambeef Products PLC
9
APPROVAL OF DIRECTORS' FEES
The recommendation to revise the fees payable to directors by 10% upwards was presented to the meeting.
It was resolved that the director's fees be revised upwards by 10% as follows:
Board Chairman: Committee Chairperson:
Board Member:
From K1 012 000 to K1 113 200 per annum
From K638 000 to K701 000 per annum
From K572 000 to K629 200 per annum
10
APPOINTMENT OF INDEPENDENT AUDITORS AND DETERMINATION OF THEIR REMUNERATION
It was resolved that Messer's PricewaterhouseCoopers (Zambia) be re-appointed as the independent auditors
of the company until the conclusion of the next Annual General Meeting and that the Board of Directors be
authorised to agree to their fees.
11
ANY OTHER BUSINESS
There being no further business to transact, the meeting closed at 11:30 hours
_________________________________________
_________________________________________
CHAIRMAN
SECRETARY
Dated this ____________________________ day of _____________________ 2024
Annual Report 2024
133
Zambeef Products PLC
NAME
PROXY
SHARES
HELD
%
STANDARD CHARTERED ZAMBIA SECURITIES SERVICES
NOMINEES LTD
MICHAEL MUNDASHI -
CHAIRMAN
52,601,435
17.50
NATIONAL PENSION SCHEME AUTHORITY
WANE CHIRWA
24,797,819
8.25
SATURNIA REGNA PENSION FUND
MUMBA MUSUNGA
13,961,011
4.64
SHAKA HOLDINGS INC
JOHN RABB
7,868,813
2.62
SPRAYVIEW TRUST
JOHN RABB
6,131,187
2.04
PUBLIC SERVICE PENSIONS FUND BOARD
AGNESS MUTALE
6,803,840
2.26
ZAMBIA SUGAR PENSION TRUST -SCHEME
MUMBA MUSUNGA
3,968,349
1.32
STANBIC BANK PENSION TRUST FUND
MUMBA MUSUNGA
3,702,160
1.23
ZANACO PLC DC PENSION SCHEME
MUMBA MUSUNGA
2,237,931
0.74
KCM PENSION TRUST SCHEME
MUMBA MUSUNGA
1,505,824
0.50
ZAMBIAN BREWERIES PLC PENSION TRUST SCHEME
MUMBA MUSUNGA
1,309,699
0.44
ABSA BANK ZAMBIA PLC STAFF PENSION FUND
MUMBA MUSUNGA
1,238,829
0.41
ABSA BANK ZAMBIA PLC STAFF PENSION FUND
NATASHA NAKAWALA
1,238,828
0.41
STANDARD CHARTERED BANK PENSION TRUST FUND
MUMBA MUSUNGA
1,108,671
0.37
CHILANGA CEMENT PENSION TRUST SCHEME
MUMBA MUSUNGA
1,017,190
0.34
AIRTEL ZAMBIA STAFF PENSION FUND
MUMBA MUSUNGA
997,466
0.33
LUBAMBE COPPER MINES PENSION TRUST SCHEME
MUMBA MUSUNGA
909,222
0.30
BUYANTANSHI PENSION TRUST FUND
MUMBA MUSUNGA
866,334
0.29
ZRA PENSION TRUST SCHEME
MUMBA MUSUNGA
777,025
0.26
GOLDEN SUNSET PENSION FUND
MUMBA MUSUNGA
621,254
0.21
CEC PENSION TRUST SCHEME
MUMBA MUSUNGA
563,950
0.19
SANDVIK MINING PENSION TRUST SCHEME
MUMBA MUSUNGA
493,562
0.16
PICZ PENSION TRUST-MONEY PURCHASE
NATASHA NAKAWALA
407,225
0.14
WORKCOM PENSION TRUST SCHEME
MUMBA MUSUNGA
378,729
0.13
GAME STORES PENSION TRUST SCHEME
MUMBA MUSUNGA
317,432
0.11
INDENI PENSION TRUST SCHEME
MUMBA MUSUNGA
226,124
0.08
FQM ZAMBIA STAFF PENSION SCHEME
NATASHA NAKAWALA
208,935
0.07
NATIONAL BREWERIES PENSION TRUST SCHEME
MUMBA MUSUNGA
202,112
0.07
PSPF STAFF PENSION SCHEME
MUMBA MUSUNGA
199,704
0.07
HEALTH SECTOR GRANT AIDED INSTITUTIONS PENSION
SCHEME
MUMBA MUSUNGA
195,181
0.06
MINOR HOTELS ZAMBIA PENSION TRUST SCHEME
MUMBA MUSUNGA
194,913
0.06
ZAMBIA REVENUE AUTHORITY PENSION TRUST SCHEME
NATASHA NAKAWALA
186,900
0.06
RAIL SYSTEMS OF ZAMBIA
NATASHA NAKAWALA
175,160
0.06
AFRICA 53
NATASHA NAKAWALA
172,836
0.06
EXAMINATIONS COUNCIL OF ZAMBIA
NATASHA NAKAWALA
171,877
0.06
DELOITTE AND TOUCHE PENSION TRUST SCHEME
MUMBA MUSUNGA
165,807
0.06
PRUDENTIAL LIFE ASSURANCE ZAMBIA LIMITED-SHF
NATASHA NAKAWALA
154,460
0.05
ECOBANK ZAMBIA LIMITED PENSION TRUST SCHEME
MUMBA MUSUNGA
154,259
0.05
SCZ INTERNATIONAL LTD PENSION TRUST
MUMBA MUSUNGA
141,503
0.05
FINANCE BANK
NATASHA NAKAWALA
137,931
0.05
OCTAGON UMBRELLA TRUST FUND
MUMBA MUSUNGA
131,371
0.04
29 DECEMBER 2023 AGM ATTENDANCE REGISTER
1) PROXIES
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134
Zambeef Products PLC
ZAMBIA NATIONAL BUILDING SOCIETY
NATASHA NAKAWALA
110,266
0.04
ACCESS BANK ZAMBIA LIMITED PENSION SCHEME
MUMBA MUSUNGA
87,409
0.03
TOYOTA ZAMBIA
NATASHA NAKAWALA
65,808
0.02
ZAMRA PENSION TRUST SCHEME
MUMBA MUSUNGA
62,149
0.02
WORKCOM TRUST PENSION SCHEME PPMZ
NATASHA NAKAWALA
59,198
0.02
MULTICHOICE PENSION SCHEME
NATASHA NAKAWALA
50,334
0.02
BUYANTANSHI PENSION TRUST FUND
NATASHA NAKAWALA
47,393
0.02
ZAMBEZI RIVER AUTHORITY
NATASHA NAKAWALA
40,600
0.01
ZRL PENSION TRUST SCHEME
MUMBA MUSUNGA
39,504
0.01
LUSAKA TRUST PENSION SCHEME
NATASHA NAKAWALA
14,558
0.00
FINAL SALARY
NATASHA NAKAWALA
13,790
0.00
CEC PESION TRUST SCHEME
NATASHA NAKAWALA
8,542
0.00
BUYANTANSHI PENSION SCHEME
NATASHA NAKAWALA
4,750
0.00
SANLAM LIFE INSURANCE (Z) LTD
MUMBA MUSUNGA
4,550
0.00
TOTAL
139,251,709
46.33
2) ATTENDEES - SHAREHOLDERS
Name
Proxy
Shares Held
%
ICM EQUITIES LIMITED
123,125 0.04
SEKELI MABOSHE
33,276 0.01
CHIMFWEMBE SAKALA
20,094 0.01
CHISANGA KALUBA
13,503 0.00
LUSEMUNA BWALYA CHILONGOSHI
10,130 0.00
MUBANGA MUBANGA
10,053 0.00
ELISHAH SHAKAMI
8,720 0.00
VICTORIA CHAMA
6,150 0.00
KAUNDA SALIMU
3,965 0.00
MUKUWE SOOMA
3,804 0.00
TEZA SIMEMBA
3,330 0.00
MWANSA NAMUKULWA
2,300 0.00
EDWARD SAKALA
2,282 0.00
EMMANUEL CHIPILI
1,882 0.00
MULENGA KANSAMBA
1,165 0.00
MASUZYO CHIRWA
760 0.00
METROLIAH SITALI
603 0.00
ANDREW NYIKA
500 0.00
MBAWEMI LUNGU
481 0.00
RICHARD MUTEBA
422 0.00
BRIGHTON SIKALANGWE
420 0.00
MISOZI ANGELA MASOTOMELA
390 0.00
DAVID NSIMBI
200 0.00
JOSHUA SIMWAWA
100 0.00
AKUNJIVWA MUKWASA
5 0.00
TOTAL
247,660
0.08
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Zambeef Products PLC
3) ATTENDEES - NON SHAREHOLDERS
Name
Representing
Count
JOSHUA TEMBO
AUTUS SECURITIES
1
NAMUKOLO MUSONDA
CORPSERVE ZAMBIA
2
SETFREE NHAPI
CORPSERVE ZAMBIA
3
JAMES NDHLOVU
CORPSERVE ZAMBIA
4
ANDREW CHIBUYE
PRICEWATERHOUSECOOPERS (PWC) ZAMBIA
5
MATONGO MATONGO
STANBIC BANK ZAMBIA
6
BRIGHT E NDHLOVU
ZAMBEEF PRODUCTS PLC
7
SEKELE EZEKIEL
ZAMBEEF PRODUCTS PLC
8
MWAMBA SIAME
ZAMBEEF PRODUCTS PLC
9
MOONDE MUDIMBA
ZAMBEEF PRODUCTS PLC
10
NYANGU KANYAMBA
ZAMBEEF PRODUCTS PLC
11
IVY MUNDU
ZAMBEEF PRODUCTS PLC
12
SAMUEL MUSUKUMA
ZAMBEEF PRODUCTS PLC
13
IVOR CHILUFYA
ZAMBEEF PRODUCTS PLC
14
INNOCENT PHIRI
ZAMBEEF PRODUCTS PLC
15
MONICA MUSONDA
ZAMBEEF PRODUCTS PLC - BOARD MEMBER
16
ROMAN FRENKEL
ZAMBEEF PRODUCTS PLC - BOARD MEMBER
17
PEARSON GOWERO
ZAMBEEF PRODUCTS PLC - BOARD MEMBER
18
MICHAEL MUNDASHI
ZAMBEEF PRODUCTS PLC - CHAIRMAN
19
FAITH MUKUTU
ZAMBEEF PRODUCTS PLC - CHIEF EXECUTIVE OFFICER
20
MBOO MUMBA
ZAMBEEF PRODUCTS PLC - CHIEF FINANCIAL OFFICER
21
GERRIE KAPAFIDZE
ZAMBEEF PRODUCTS PLC - COMMERCIAL EXECUTIVE
22
TEBA MUKUKA
ZAMBEEF PRODUCTS PLC - LEGAL OFFICER
23
MWANSA MUTIMUSHI
ZAMBEEF PRODUCTS PLC - COMPANY SECRETARY
24
Annual Report 2024
136
Zambeef Products PLC
FORM OF PROXY
For the 30th Annual General Meeting
I/We _____________________________________________________________________________________________________
(Name/s in block letters)
of ______________________________________________________________________________________________ (address)
being a member/ member of the above-named Company hereby appoint
1.
___________________________________ of _____________________________ or in his absence
2.
___________________________________ of _____________________________or in his absence
3.
the Chairman of the meeting
As my/our proxy to vote for me/us on my/our behalf at the annual meeting of the company to be held virtually
on the 30th day of December 2024 at 10:00 hours and at any adjournment thereof as follows:
Resolution No.
Agenda Item
Mark with X where applicable
In Favour
Against
Abstain
1
To receive, adopt and approve the reports of the Directors,
the Auditors and the Financial Statements for the year ended
September 30, 2024
2
Confirmation of Directors
3
Mr. Patrick Wanjelani
4
Mr. Patrick Kalifungwa
5
Re-election of Directors
6.
P. Gowero
7.
M. Musonda
To approve the annual fees payable by the company to the Non-
Executive Directors, for the year ending 30 September 2025,
unless otherwise determined by the company in a general
meeting, to be revised by 15%
Pursuant to Sec. 257 of the Companies Act: To appoint Messer’s
PricewaterhouseCoopers as the independent auditors and
authorise the directors to determine the auditor’s fees.
Unless otherwise instructed, the proxy will vote as he thinks fit.
Signed at __________________________________ on this ____________________ day of ______________________ 2024
Signature ________________________________________________________________________________________________
Assisted by me (where applicable) (see note 3) ____________________________________________________________
Full name/s of signatory/ies if signing in a representative capacity (see note 4) _____________________________
Number of votes
(1 share = 1 vote)
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137
Zambeef Products PLC
NOTES TO THE FORM OF PROXY
1.
A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend, speak
and vote in his/her stead. A proxy need not be a member of the Company.
2.
If this proxy form is returned without any indication as to how the proxy should vote, the proxy will be entitled
to vote or abstain from voting as he/she thinks fit.
3.
A minor must be assisted by his/her guardian.
4.
The authority of a person signing a proxy in a representative capacity must be attached to the proxy unless the
Company has already recorded that authority.
5.
In order to be effective, proxy forms must reach the registered office of the Company or the transfer secretaries
before the Annual General Meeting.
6.
The delivery of the duly completed proxy form shall not preclude any member or his/her duly authorised
representative from attending the meeting, speaking and voting instead of such duly appointed proxy.
7.
If two or more proxies attended the meeting, then that person attending the meeting whose name appears first
on the proxy form, and whose name is not deleted, shall be regarded as the validly appointed proxy.
Annual Report 2024
138
Zambeef Products PLC