Lafarge Cement Zimbabwe Limited projects profitability in 2016 after recording a US$1.9 million loss in after tax profit for the year-ended 31 December 2015.
The company recorded a profit after tax of US$80 950 in 2014.
Lafarge commented that the economy experienced serious difficulties on a sustained basis because of a combination of factors such as the liquidity crunch, reduced consumer spending due to continued job losses and a poor agricultural season arising from a late and erratic rainfall season.
The group stated that sales volumes increased to US$61.55 million from US$60.45 million representing a 2% growth due to sales volumes.
Earnings Before Interest and Tax decreased by 230% to a loss of US$1.68 million during the period under review from a profit of US$1.29 million in 2014 driven to a large extent by these provisions.
Total assets decreased by 13% to $65 million in 2015 from US$69.9 million in 2014 due to the reduction in inventory from the obsolescence provisions.
Read the article online at: https://www.worldcement.com/africa-middle-east/22042016/lafarge-cement-projects-profit-960/