Lafarge projects 10% increase in revenue

Lafarge projects 10% increase in revenue
Published: 06 March 2014
Lafarge's full year revenue is expected to improve by 10% compared to 2013 and $7 million will be spent on capital expenditure during the year to improve plant efficiencies, finance director  Farai Matanhire has said.

Cash generation is also expected to improve in line with improved operating margins and working capital management, he noted.

Giving a trading update in the wake of December finals Matanhire said overall cement demand for the first 2 months of 2014 was 1% ahead of same period last year.

The construction sector’s contribution to revenue increased by 1% from last year to close at 9%. He said that the market still remains predominately retail sector at 76%.

Domestic sales volume for the first 2 months of the year declined by 12% compared with the same period last year and this was due to delayed startups by some construction companies following the construction sector annual shutdown and the excessive rains.

"Although the economy is likely to continue facing severe liquidity constraints, the construction sector is expected to register some growth arising from specific funded construction projects," he said.

On financial performance Matanhire said sales revenue to date is adverse to same period last year due to low export sales volume. However, he added that the company will more than offset the loss in export sales volumes through increased local sales volume during the year.

"Profit margins at 9% are in line with 2013 performance. Margins are expected to improve following the successful completion of the annual kiln shutdown that is currently in progress," Matanhire said.

Revenue from non-cement products is 9% ahead of same period last year.
- zfn
Tags: Lafarge,


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