Lafarge Zambia Plc has reported a four percent rise in profits in the first six months of 2015 of K187 million.
The firm also saw its sales turnover jump by 14% to K700 million over the same period.
Its Earnings Per Share rose by 4% to ZMW 0.936.
The company described its first half results as Solid in the context of a slowdown in the Zambian construction market and negative growth in the DRC.
It said Electricity supply disruptions adversely impacted cement production but that its financial position and cash flow remained solid with no external debt.
The company has since declared an interim dividend of K0.25 per share for the year ending 31 December 2015 was declared.
Lafarge Zambia Chief Executive Officer Emmanuel Rigaux market activity was subdued in the first half of the year in the Zambian market and negatively impacted by political uncertainties in the Democratic Republic of Congo which continues to be its major export market.
Mr Rigaux said the successful issuance of the $1.25 billion Eurobond by the Zambian Government is expected to generate increased construction activity.
He said Lafarge Zambia is now part of the most advanced and successful construction group in the world following the successful completion of the LafargeHolcim merger.
“The Company is ready to leverage the benefits of belonging to such a strong Group. It is determined to keep its market leadership and continue to offer our customers the best quality products and services,” Mr Rigaux said.
Mr Rigaux said domestic demand in the second half is expected to continue to slow down until Eurobond proceeds are directed towards infrastructure and construction activity.
“Strong focus in the second half will be placed on adjusting our cost base wherever necessary,” he said.
Government has admitted that the rapid technological development has impacted negatively on the postal services sector in Zambia.
OK< good news bane !!!!
OK
Dangote is a big company. LAFARGE is a very big Company
And the italian mafias at Zambezi Portland Cement have retrenched 100 workers on account of low sales due to lack of strategy to compete in the current environment.
This French MD is shameless indeed. He shouldn’t even talk about the Eurobond because it is our children and not his who are going to pay for that loan.Lafarge need to explain to the Zambian people what mathematics they have used to reduce prices yet the cost of production has gone up. Fuel price is up, labour costs are flat, energy costs are up and erratic, transportation costs are up, the dollar rate to the kwacha is up.They preached that they will not go into a price war with the competition and yet that is exactly what we are seeing. If Lafarge cement is that good in terms of quality, how come the customers are fleeing to Dangote? These heartless guys were stealing from us by selling their cement at prices that guaranteed almost 50% profit margin for them. Constructing a house became…