Lafarge revenues increase in Zambia

Lafarge Cement Zambia has reported increased revenues, though profits have been slightly dampened by increased tax. Revenue for the first six months of 2013 came in just under ZMW483 million, up from ~ZMW433 million in 1H12. The company reports that domestic cement demand was stronger in 1H13 than in the previous year, leading to a reduction in exports. Regional demand grew more slowly. The Democratic Republic of Congo is the largest export market for Lafarge Cement Zambia.

Profit before tax increased to ZMW173 million due to significantly higher volumes, optimised product mix and high investment income, though operating costs were higher and the company struggled with the quality of power supply through the period in question. The tax increase of ZMW10 million y/y was a result of the capital allowances on the new plant having been fully utilised in the previous period. Otherwise, financials were good.

Demand is expected to remain strong in the second half of the year, and the company plans to introduce further products, services and solutions to satisfy market demand.

Edited from various sources by Katherine Guenioui