LAFARGE Zambia plc has posted a four percent profit after tax from K180.7 million in the first half of 2014 to K187.1 million in the same period of 2015 despite economic challenges in Zambia, and political uncertainties in Democratic Republic of Congo (DRC), which constitutes the company’s major export market.
The company that recently merged with the Holcim Construction Group also recorded a 14 percent turnover of K699.1 million in 2015 from K614.3 million in 2014.
According to financial results for the half year ended June 30, 2015, Lafarge is determined to keep its market leadership and continue to offer customers the best quality products and services.
It stated that electricity supply disruptions adversely impacted cement production.
Company chief executive officer Emmanuel 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. Market activity was subdued in the first half of the year in the Zambian market, and negatively impacted by political uncertainties in the DRC, which constitutes our major export market. The successful issuance of the US$1.25 billion by the Zambian government is expected to generate increased construction activity,” Mr Rigaux said.