Chairperson’s Statement

On behalf of the Board, I am pleased to present the business’ results for the financial year ended 31 August 2025. Despite the challenging economic conditions exacerbated by the unprecedented drought in the 2023/24 season, our management, staff, and partners, have once again delivered a strong performance that demonstrates resilience, agility, and unwavering commitment to value creation.

The business continued to build on the momentum established in the prior year to deliver another strong performance in 2025. Our manufacturing and agricultural operations once again provided a sound foundation for commercial performance by ensuring that Whitespoon products were readily available in the market.

This achievement is particularly commendable given the residual effects of the drought, which significantly impacted both irrigation capacity and power supply. Through resilience, teamwork, and unwavering commitment, the business successfully navigated these headwinds demonstrating the strength of the business in challenging conditions.

The Managing Director’s Statement provides a comprehensive overview of the business’ operational, commercial, and financial performance during the year under review.

The safety and wellbeing of all employees, contractors, visitors, and local communities remains a top priority. During the year, the business made significant strides in embedding a safety culture across the organisation, focusing on activities that promote sound personal choices in everyday decisions.

While we continue to make progress in our safety journey, it is with immense regret that I report the passing of Mr. Joseph Kunda on 21 August 2025. Mr. Kunda, a third-party contractor employed by Kal Tire, tragically lost his life while repairing a tyre at the Nakambala Transport Workshop. Kal Tire is the company engaged to provide tyre maintenance services for the our fleet. We extend our heartfelt condolences to Mr. Kunda’s family, friends, and colleagues.

While this devastating event adversely impacted our safety performance, we remain committed to the goal of ensuring that employees and contractors go home safely every day, everywhere, without exception. The business continues to strengthen its safety protocols and processes through the elimination of unsafe working conditions, enhanced leadership visibility, increased supervisory oversight, comprehensive near-miss reporting, and implementation of the Busongo behavioural safety training program. With all these measures in place, the Board is pleased with the progress we are making on our safety journey.

Focus on sustainability remains front of mind, exemplified through various activities that align with Environmental, Social and Governance (ESG) principles. Despite significant challenges, including the adverse effects of harsh weather conditions and power supply constraints, the business maintained its firm commitment to sustainable practices across both agricultural and manufacturing operations.

ECONOMIC REVIEW

The country fell short of the 6%-8% inflation target due largely to the lingering effects of the 2023/24 drought, which significantly impacted agricultural output and electricity supply. Despite these challenges, inflation has been trending downwards on account of declining fuel prices, a strengthening Kwacha, easing of supply chain constraints, and notably, lower food prices following a bumper maize harvest of 3.7 million tonnes in 2025. These developments should have a positive impact on input costs in areas such as logistics, fertilisers and agrochemicals in 2026.

The appreciation of the Kwacha during the third quarter of the calendar year, negatively impacted both industrial sugar demand and export proceeds realisation. Additionally, this resulted in a marked increase in sugar imported illegally into the border towns which increased competition with Whitespoon products in those markets reducing sales.

SHARE PRICE

In August 2024, the share price was K34 per share, reflecting a market capitalisation of K10.6 billion. By financial year-end, on 31 August 2025, this had risen to K48 per share, increasing market capitalization to K15.2 billion.

This sustained growth in share price continues to reinforce market confidence and positions the business as a strong contender to cross the US$1 billion valuation threshold in the near future. The Board is deeply grateful for the trust placed in our stock and remains committed to pursuing strategic growth and long-term value creation.

DIVIDEND

The Dividend policy is anchored on distributing up to 50% of free cash flow, after meeting all operational obligations and capital investment requirements.

Following a Board meeting held on 31 October 2025, I am pleased to report that a final Dividend of 109.6 Ngwee per share was recommended for the 2025 financial year. This decision reflects the Board’s continued confidence in the business’ ability to generate sustainable value for shareholders.

DIRECTORATE

I would like to announce the following changes to the Board directorate. Ms Susan M’Kandawire Mulikita was appointed as a Non-Executive Independent Director of the Board effective 26 February 2025. In addition, Mr Lekani Katandula was appointed as a Non-Executive Director of the Board effective 1 April 2025 following his appointment as Chief Financial Officer of ABF Sugar. These appointments are subject to ratification by the shareholders at the Annual General Meeting.

During the year, Ms. Amanda Venters resigned from the Board following her departure as Interim Chief Financial Officer of ABF Sugar on 31 March 2025. On 4 August 2025, Mr. Andre Lubbe resigned from the Board following his departure from ABF Sugar.

Please join me in welcoming Ms. Mulikita and Mr. Katandula, to the Board. I wish to thank Ms Venters and Mr. Lubbe for their contributions during their time on the Board and wish them success in their future endeavours.

OUTLOOK

he weather forecasts indicate a normal 2025/26 rainy season. Power reliability and water security continue to be major areas of focus for the business, and initiatives are in place to address the risks associated with these critical resources.

As a market and customer-led business, we remain focused on expanding our product portfolio to serve the diverse needs of our customer base across all market segments and in the regional export market. Consequently, the business is well positioned to remain the supplier of choice, trusted by customers and consumers alike for quality, reliability, and value.

Looking ahead, Zambia’s projected GDP growth of 5.8%–6.0% for 2025 reflects a continued recovery in agriculture, alongside strong performance in mining and services. This momentum together with a stable Kwacha and declining inflation provides sound macro-economic conditions for the business to thrive. Our business is well positioned to take full advantage of these positive economic developments to create value for our shareholders in the year ahead and beyond.

CONCLUSION

I would like to extend my sincere gratitude to my fellow Directors for their unwavering support and diligence throughout the year.

I offer my heartfelt congratulations to the Managing Director, Mr Oswald Magwenzi, the Leadership Team and our dedicated employees. Their commitment and resilience have been instrumental in enabling the business to deliver yet another strong performance, despite the challenging economic environment and lingering effects of the 2023/24 drought.

I would also like to extend deep appreciation to our valued customers and consumers for their continued loyalty and support. This is what drives the business’ success.

On behalf of the Board, I want to thank you all for the confidence you continue to place in our stewardship. We pledge our steadfast support and guidance to the management team, to ensure we fulfil our mission of feeding the nation and the region.

ROSETA CHABALA
CHAIRPERSON