Chronicle Editor
Business Reporter
LAFARGE Cement Zimbabwe has reported a loss after tax of $1,97 million for the year ended December 31 2015.
The company said a sub-optimal portfolio and price mix countered sales volumes growth to restrict revenue for the full-year to increase by a marginal 2 percent to $61,55 million from $60,45 in the comparative year.
Cement sales volumes grew five percent above the prior year driven largely by the successful implementation of market growth strategies of leveraging targeted distribution which was supported by the overall domestic market stabilisation.
Lafarge said average prices experienced pressure from low end players who demanded and received bulk discounts.
The company said it secured new market segments that generated incremental sales volumes following its strategy of enhancing market penetration and operational initiatives.
It recorded a 72 percent increase
in cash generated from operating activities to $6,13 million over the prior
year.
This resulted in total available cash in the year of $8,02 million of which $3,03 million was invested in property, plant and equipment and $4,84 million went towards the repayment of loans.
Going forward, Lafarge expects the trading environment to exert sustained pressure on prices due to the ongoing economic challenges.
However, the company expects improved profitability this financial year mainly driven by operational cost reduction measures and targeted strategic marketing initiatives.
Lafarge started the year with no borrowings after paying off all bank loans, it said.
Lafarge Cement Zimbabwe, one of the major cement companies in Zimbabwe manufactures and markets cement, aggregates and specials products.
It is a wholly-owned subsidiary of Lafarge, the French global company that is world leader in construction materials.
It has supplied cement towards construction projects in the country including Kariba Dam, Cahora Bassa Dam, and major high rising buildings.
Online Reporter