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Date 15/03/2017

Lafarge Zambia in K127million profit!

Lafarge Zambia has recorded K889 million revenues and a profit after tax of K77 Million for 2016 on the back of competitive pressure, a prolonged tight liquidity on the money market, coupled with high interest rates. This restricted expenditure resulting in the domestic market contracting by about 21% compared to 2015.

The Company's sales revenue for the year was K889 million compared to K1, 269 million in 2015. This resulted in a profit before tax of K127 million, a drop from K483 million recorded the previous year. After allowing a tax charge of K51 million the Company's profit after tax was K77million resulting in Earnings Per Share of K0.39.


Subsequently at the Company's Board of Directors meeting the directors recommended a dividend of K0.25 per share to be approved at the Annual General Meeting which is scheduled for 5 April 2017.

 

The Company sustained its strict cost management policy although power supply challenges adversely impacted production costs at both Chilanga and Ndola Plants.


Although domestic sales volumes were down 42% compared to 2015, cement and clinker export volumes rose by 53% compared to 2015 with clinker sales reaching record high. The Company had zero long term debt as at 31 December 2016. The Company's financial structure remains solid.

 

Vincent Bouckaert, Lafarge Zambia Chief Executive Officer, said he was convinced that 2017 would be a positive year for the economy and the Company due to rising copper prices, promising harvest and 1.5% reduction in monetary policy rate to 14% that would result in improved construction activity.

 

"The innovative products and solutions that the Company continues to pursue will drive growth in 2017. The growth in mining activity due to the rising copper price, good maize harvest and lowering of Government's monetary policy rate from 15.5% to 14% will lead to improved liquidity likely to enhance performance of the construction sector", he said.

 

The Company is supplying the large construction projects in the country for example the Kafue Gorge Lower and Kenneth Kaunda International Airport (KKIA). The Kumanga retail franchise which is the distribution channel management model, is beginning to accelerate with a focus on promoting entrepreneurship. In addition, the Company is committed to growing the export market.

-End-

 

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