The group is now projecting a 29 percent increase to US$90 million for the year ended December 31 2013 compared.
The company’s Managing Director Jonathan Shoniwa said their target was achievable given that demand for the first two months of the year had improved by 6 percent compared with the same period last year.
The group’s local cement sales increased by 48 percent. Profit after tax increased to US$4,6 million from US$3,5 million while earnings per share surged 32 percent to 0,06 cents from 0,04 cents in 2011.
Lafarge’s chairman Muchadeyi Masunda said finance costs went down 21 percent to US$0,54 million as the group contained borrowings.
He said the group spent US$3,5 million on a retrenchment exercise which ate into the company’s top line.
“Net cash generated by operating activities declined from $5,6 million in 2011 to $4,7 million mainly due to an increase in inventory levels and taxes paid,” he said, adding that spares stock was increased to improve the company’s preparedness for emergency breakdowns.
“Cement and clinker stocks were also relatively high as demand tumbled during the month of December owing to heavy rains,” he said.
The housing backlog in Zimbabwe is so huge and mortgage financing is required to support residential projects going forward which would boast Larfage’s operations.
Shoniwa said the market remains predominantly driven by individual home builders while there was a number of construction projects in the pipeline which should boost demand should they materialize
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