Zambeef Products PLC

Zambeef Products PLC maintains a conservative capital structure with a debt-to-equity ratio of 0.38 and a current ratio of 1.1. The balance sheet shows total assets of 10.24 billion ZMW against total liabilities of 3.86 billion ZMW, resulting in total equity of 6.39 billion ZMW. Long-term debt stands at 2.40 billion ZMW, while cash and equivalents are 244.45 million ZMW, leading to a negative net cash position as flagged in the risk assessment. Operating cash flow is 268.94 million ZMW, supporting a free cash flow of 121.36 million ZMW after capital expenditures of 373.68 million ZMW.

Profitability metrics indicate modest returns, with a return on equity of 3.54% and a return on assets of 2.20%. The company generated a gross profit of 1.82 billion ZMW on revenue of 8.06 billion ZMW, resulting in an operating income of 639.99 million ZMW and net income of 225.82 million ZMW. Without cohort median data for direct comparison, these returns reflect the company's standalone efficiency in converting assets and equity into earnings.

Segment and geographic revenue concentration data is not provided in the available input, preventing a detailed analysis of revenue mix or regional exposure. The analysis relies solely on the consolidated financial figures presented.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, recent performance shows actual revenue of 8.06 billion ZMW significantly exceeding the mean analyst estimate of 5.67 billion ZMW. Similarly, the last actual EPS of 0.56 ZMW surpassed the mean estimate of 0.36 ZMW, indicating recent outperformance against market expectations.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, suggesting reliance on operating cash flows to service obligations. The current ratio of 1.1 indicates tight short-term liquidity coverage.

Recent observations show that actual financial results have beaten analyst estimates for revenue, EPS, and EBIT. The mean EBIT estimate was 616.14 million ZMW, while the reported operating income was 639.99 million ZMW, further confirming the positive variance in recent performance.

Revenue grew 12.8% annually over four years, demonstrating consistent top-line expansion for Zambeef Products PLC.

Operating income surged 31.4% year-over-year in 2025, indicating strong operational leverage and margin improvement.

Free cash flow turned positive in 2025, reversing previous deficits and improving liquidity generation capabilities.

Operating margin of 7.9% exceeds the cohort median of 7.7%, suggesting superior cost management relative to peers.

Net income increased 25.6% year-over-year in 2025, reflecting improved profitability despite higher debt levels.

Long-term debt more than tripled from 2021 to 2025, significantly increasing financial leverage and interest obligations.

Return on equity of 3.5% is significantly below the cohort median of 7.9%, showing poor capital utilization.

Medium liquidity and credit risk flags suggest potential challenges in meeting short-term obligations and debt servicing.

Free cash flow was negative for three consecutive years prior to 2025, highlighting historical cash generation instability.

Revenue ZMW 8.06B, +10,2% YoY; Operating income +31,4% YoY.

• ▍Revenue ZMW 8.06B, +10,2% YoY
• ▍Operating income +31,4% YoY
• ▍Net income +25,6% YoY
• ▍Free cash flow +128,6% YoY
• ▍Net margin 2.8%

Revenue ZMW 7.32B, +21,0% YoY; Operating income +34,8% YoY.

• ▍Revenue ZMW 7.32B, +21,0% YoY
• ▍Operating income +34,8% YoY
• ▍Net income +51,6% YoY
• ▍Free cash flow +18,4% YoY
• ▍Net margin 2.5%

Revenue ZMW 6.05B, +12,1% YoY; Operating income +108,1% YoY.

• ▍Revenue ZMW 6.05B, +12,1% YoY
• ▍Operating income +108,1% YoY
• ▍Net income +306,9% YoY
• ▍Free cash flow −381,4% YoY
• ▍Net margin 2.0%

Revenue ZMW 5.39B, +8,4% YoY; Operating income −29,5% YoY.

• ▍Revenue ZMW 5.39B, +8,4% YoY
• ▍Operating income −29,5% YoY
• ▍Net income −82,7% YoY
• ▍Free cash flow −154,8% YoY
• ▍Net margin 0.5%

Revenue ZMW 4.97B; Operating income ZMW 246.4M.

• ▍Revenue ZMW 4.97B
• ▍Operating income ZMW 246.4M
• ▍Net margin 3.4%