Lafarge Zambia Plc Results for the Year Ended 31 December 2015

21.03.2016
 

In compliance with the requirements of the Securities Act, Cap 354 of the Laws of Zambia and the listing rules of the Lusaka Stock Exchange (LuSE), Lafarge Zambia Plc announces the audited results for the year ended 31 December 2015.

 

FULL YEAR OPERATIONAL PROFIT AT ZMW 452 MILLION (-23% vs. 2014)

 

ON-GOING COST BASE ADJUSTMENT MEASURES TO DEAL WITH NEW MARKET ENVIRONMENT

 

FULL YEAR KEY FIGURES

 

 

  • Sales Turnover: ZMW 1,296 million
  • Profit Before Tax: ZMW 484 million (including ZMW 17 million of restructuring costs)

 

 

  • Profit After Tax : ZMW 322 million
  • Company's Earnings Per Share: ZMW 1.61 per share

 

 

 

FULL YEAR COMPANY HIGHLIGHTS

  • Full Year Results impacted bypricing pressure; challengingexport markets, power costs increaseandsteep currencydepreciation in H2 2015. Profitbeforetax, including restructuring costs of ZMW 17 million at ZMW 483 million(down26% vs. 2014).

 

  • TheFinancialPosition andCashFlowsof the Company remained solid withno external debt.The Dividend declared for 2014was paid out in the second quarter of the year.

 

  • At themeeting of theBoard of Directors held on28January 2016, the Directors recommended that in addition to the interim dividend of K0.25per share paid in 2015, a final dividend ofZMW0.50 per share for the financial year ending 31 December 2015 be approved at the Annual General Meeting to be heldon 18March 2016.

 

"Despite new competition and challenging markets Lafarge Zambia maintained its market leadership in 2015 both in Zambia and in the DRC, with a marginal reduction versus our record 2014 volume numbers. The second half of 2015 saw a combination of negative factors both in terms of market and in terms of production costs.  Strong measures have been put in place to reduce our costs and leverage synergies from the new Group. We are fully focused in 2016 on developing our export markets and introducing new solutions to our customers particularly in the distribution sector."

Emmanuel Rigaux, Chief Executive Officer of Lafarge Zambia

 

DIRECTORATE

 

Mr. Dominique Drouet was appointed to the Board effective 7 August 2015.

 

OUTLOOK

 

Our markets are expected to be challenging again in 2016 both on prices and volume. We will continue to focus on our export markets (Democratic Republic of Congo (DRC), Malawi, Zimbabwe, and Tanzania).  Our partnership with the rail authorities including Zambia Railways Limited is set to increase the flow of products by rail to our foreign markets and assert Zambia as a regional export hub.