Chamwe Kaira
Savanna Beef Processors Limited has reported an operating loss of N$9.75 million for the six months ended 31 August 2025, according to its unaudited interim results released on the Johannesburg Stock Exchange (JSE).
The company recorded a loss before taxation of N$13.21 million for the period, compared to a loss of N$7.67 million for the year ended 28 February 2025.
No taxation was recognised, resulting in a total, comprehensive loss of N$1.22 million for the interim period. Savanna Beef has over 250 million shares in issue, with a net asset value of 99 cents per share. Basic earnings per share stood at negative 3.07 cents, while headline earnings per share were negative 0.50 cents.
The board said the construction phase of the abattoir owned by its subsidiary, Savanna Beef Operations (Pty) Ltd, was completed on 27 October 2025 after a taking-over certificate was issued.
The subsidiary began limited slaughtering during the commissioning phase on 27 August 2025, operating for three days and processing 61 large stock units before construction resumed for another month.
From early October 2025, the abattoir resumed slaughtering at an average of 40 large stock units per week.
By 30 November 2025, a total of 706 large stock units had been processed. The company plans to increase production to 100 large stock units per day, with a full capacity of 250 units per day expected once European Union export certification is secured.
As of 31 August 2025, the subsidiary employed 84 workers, with the workforce expected to grow to 220 as operations expand.
In November 2025, the department of veterinary services conducted the regional Southern African Development Community (SADC) slaughter audit inspection at the abattoir.
The company said exports to Europe are expected to begin in 2026 once EU export certification is granted, in line with the existing marketing agreement.
During the period, finance costs of N$8.2 million linked to loans from SADC and N$1.6 million relating to Energy Utilities Assets (Pty) Ltd. were accrued, with N$9.8 million of these costs capitalised.
Savanna Beef said that by 30 November 2025, all milestones under the engineering, procurement and construction contract, valued at N$149 million, had been certified by the employer’s representative and the Industrial Development Corporation.
The final payout under the construction loan is expected in January 2026.
Energy Utilities Assets (Pty) Ltd took delivery of the refrigeration system on 1 November 2025 under an outsourcing agreement valued at N$107 million, with the subsidiary receiving an advance payment of N$55 million.
An equity contribution of N$40 million from BPF Windsor Holdings Limited, linked to the completion of a project milestone, is expected in December 2025.
The board said total capital expenditure for the project is expected to remain within the overall contract value of N$418 million once all capital projects are completed in December 2025.
Talks are continuing between the contractor and the subsidiary on variation orders and the final amount of delay damages following an eight-week construction delay beyond the agreed completion date of 21 August 2025.
Because of the construction delay and the postponed SADC slaughter audit inspection, the board has deferred the declaration of slaughter rights to a meeting planned for mid-February 2026.
Caption
Savanna Beef Processors recorded a loss before taxation of N$13.21 million in the six months ended 31 August, compared to a loss of N$7.67 million for the year ended 28 February 2025.
- Photo: Contributed
