Mon, 20 Mar 2017 17:12:47 +0000
By Sheila Sakupwanya
LAFARGE Zambia has recorded K889 million revenues and a profit after tax of K77 million for the year 2016, representing earnings per share of K0.39, despite the competitive pressure, a prolonged tight liquidity on the money market as well as high interest rates.
According to a statement released to the Daily Nation, the restricted expenditure resulted in the domestic market contraction of about 21 percent compared to 2015.
Lafarge Zambia chief executive officer Vincent Boukaert said he was convinced that 2017 would be a positive year for the economy and the company due to rising copper prices, promising maize harvest, and a 1.5 percent reduction in monetary policy rate that would result in improved construction activities in the country.
“The innovative products and solutions that the company continues to pursue will drive growth in 2017 and the growth in the mining activity due to the rising copper price, good maize harvest. The lowering of Government’s monetary policy rate from 15.5 per cent to 14.0 percent will lead to improved liquidity, likely to enhance performance of the construction sector,” Mr Boukaert said.
He said Lafarge’s sales revenue for the year was K889 million compared to K1,269 million in 2015, resulting in a profit before tax of K127 million, a drop from K483 million recorded in the previous year.
“The company sustained its strict cost management policy although power supply challenges adversely impacted production costs at both Chilanga and Ndola plants,” said Mr Boukaert.
He said although domestic sales volumes were down by 42 percent compared to 2015, cement and clinker exports rose by 53 percent compared to 2015 with clinker sales reaching record high.
“The company had zero long term debt as at 31st December, 2016, and the company’s financial structure remains solid,” he said.
Lafarge is supplying the large construction projects in the country such as the Kafue Gorge Lower and Kenneth Kaunda International Airport (KKIA).
And the distribution channel management known as Kumanga retail franchise is beginning to accelerate with a focus on promoting entrepreneurship while the company is still committed to growing the export market.
