According to its condensed financial statement for the period ending December 31, 2018, Lafarge saw its profits after tax rise to K195 million last year, up from just K19 million in the prior corresponding period in 2017, triggered by improved cement sales on the domestic market.
Company data shows that Lafarge Zambia recorded stronger growth in its domestic market compared to the export market, with cement sales in the former growing at 10 per cent over 2017.
“Sales revenue at K1,142 million for the year up by 13 per cent compared to 2017, thanks to strong market growth of approximately 30 per cent. Cement domestic volumes up 10 per cent vs. 2017. Cement export volumes down 25% vs. 2017,” Lafarge stated.
“Domestic cement market is estimated at approximately 2.1 million tonnes of cement representing an average growth of approximately 30 per cent compared to 2017. New export markets continue to be developed in the region.”
And newly-installed managing director Jimmy Khan hailed the company’s improved financial performance in 2018.
“The Company continued to focus intensively on commercial transformation and sustainability for continued growth. Sales volume performance for the year was favourable thanks to the Binastore retail channel roll-out and other innovations from our teams such as ‘Supablock.’ The plants’ strong cost management initiatives mitigated the impact of production cost increases with margins remaining the same as 2018. I am pleased with the improved results,” stated Khan.
Lafarge’s gross revenue peaked at K1.14 billion last year, up from K1 billion in 2017.