Lafarge “Health, Cost and Lots of Cash”
Lafarge, Manufacturing

Lafarge Cement, Zambia’s top ranking player in cement aggregates and concrete businesses recently published it’s Annual Report, in which the Company’s Chairman elaborated how Lafarge showcased it’s business resilience, innovation and commitment to delivering value for all stakeholders in a period characterized by unprecedented global challenges with the Covid-19 pandemic disrupting global businesses.

Despite this challenging backdrop, the company reported a profit before tax of k342,057 thousand compared with a restate loss of k56,245 in 2019. The performance was mainly attributed to the early response by the company to the impacts of the Covid-19 pandemic with focus on health, cost and cash. The company also recorded a turnover of K 1,693,146 (2020: K 1,110,153) resulting in a 53% increase from 2019. The performance was mainly attributed to increased exports of 29% compared with 2019 by focusing on export markets.

Though the company’s operational costs were negatively impacted by currency devaluation, high inflation rates, gypsum scarcity and supply chain disruptions, Lafarge Zambia brought in more than 1 billion Kwacha  into Zambia and solidified its position as the best in class and quality in the region. Whilst remaining resilient, it’s company shares held at k2 per share for the most part of 2020, with a closing share price of K 2.07 which was approximately 23 % higher than the 2019 closing share price.
In 2020 the Company paid an interim dividend of K 1.5 per share and a further K 0.5 per share was declared at the board meeting held on 31 March 2021 for the financial year 2020. No dividends were paid in 2019.

Courtesy of Lafarge Zambia 2019 and 2020 Annual Reports

In a statement made by Lafarge Zambia’s Chairman, it was stated that the Company wishes to focus on continuing to drive commercial innovations through the Company’s lead retail application and partnership with digital outlets such as AfriDelivery and Tigmoo as well as spearhead developmental sustainable and eco-friendly building solutions.

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