|
2004 Five-Year Financial History and Prospects
Income Statements -
Year ended 30 September (K’m)
The Directors believe the prospects for the business are very
attractive.
Zambeef has enjoyed consistent growth over the past five-year period
and continues to maintain a significant share of the retail beef
market in the country.
The company’s diversification into the poultry and dairy businesses
has permitted it to utilise even more effectively its marketing and
distribution network and increase the output of its diversified
products in its 78 retail outlets throughout Zambia.
Zambeef’s stock feed plant has helped it to control both the supply
and cost of a significant percentage of its production inputs. This
has further been improved by the continued expansion of its cropping
activities resulting in a significant portion of the 120 tonnes of
stock feed fed per day being grown by Zambeef itself.
The company’s strategic plan of adding maximum value to all its
products is further shown by the expansion of the tannery into
finished leather and recently an industrial shoe plant to add
further value to its hides
In addition, a fast food chain under the brand name Zamchick Inn,
has been started to further add value to its poultry broiler
operations.
The diversification strategy, combined with its input control and
widespread retail distribution network provide added confidence that
Zambeef will continue to experience growth in the business.
Given that emphasis has been placed on the development of the
agricultural sector and export market opportunities yet to be
exploited by Zambeef, the Directors believe the company is well
placed to grow and expand in both the Zambian and selected export
markets.
The acquisition on 15th October, 2004 of the 2,000 hectare
irrigation project on the shores of Lake Kariba from Gwembe Valley
Development Company Ltd will make Zambeef one of the largest
cropping operations in Africa.
With the regional shortage of agricultural commodities and Zambeef’s
ability to add value through its stock feed plant and livestock
production, this acquisition will further ensure the company is a
well diversified company with excellent growth potential. |
