Lafarge Zambia Plc 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 (DRC), which continues to be our major export market. The successful issuance of the $1.25 billion Eurobond by the Zambian Government is expected to generate increased construction activity.
In compliance with the requirements of the Securities Act, Cap 354 of the Laws of Zambia and the listing rules of the Lusaka Stock Exchange (LuSE), Lafarge Zambia Plc announces the unaudited results for the half year ended 30 June 2015.
First Half Key Figures
- Sales Turnover up by 14% to ZMW 700 million
- Profit before Interest and Tax up 16%
- Profit After Tax up by 4% to ZMW 187 million
- Company's Earnings Per Share up by 4% to ZMW 0.936
First Half Company Highlights
- Solid H1 results in the context of a slowdown in the Zambian construction market and negative growth in the DRC.
- Electricity supply disruptions adversely impacted cement production.
- Profit Before Interest and Tax grew 16% due to cost containment measures which will continue in the second half.
- Profit After Tax was up 4% to ZMW 187 million vs H1 2014.
- The financial position and cash flow of the Company remained solid with no external debt. The dividend declared for 2014 was paid out in the second quarter of the year.
- At a meeting of the Board of Directors held on 7 August 2015 an interim dividend of ZMW 0.25 per share for the year ending 31 December 2015 was declared.
Chief Executive Officer of Lafarge Zambia, said:
Lafarge Zambia is now part of the most advanced and successful construction group in the world following the successful completion of the Lafarge Holcim 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.
There were no changes in the directorate during the first half of the year.
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.
HY 2015 financial results