Lafarge reports $1,4mln after tax loss on weak H1 sales

Lafarge reports $1,4mln after tax loss on weak H1 sales

HARARE, September 30 (The Source) – The local unit of global building materials manufacturer LafargeHolcim reported an after tax loss of $1,39 million for the half year to June from a loss of $1,32 million in the prior comparable period, on weak demand as the country’s construction industry remains subdued.

Cement maker Lafarge Zimbabwe on Wednesday said volumes of cement sales were down seven percent during the first half of the year, resulting in a decline in revenue to $25,4 million from $28,2 million.

“The construction industry remained largely subdued due to lack of major national and large commercial infrastructure projects. However, low scale projects and independent home development projects continued although at a lower momentum than the prior year,” said acting chair Muchadeyi Masunda  in a statement.

Operating loss widened to $1,8 million from $1,7 million incurred in 2014.

As at 30 June the company had invested $1,2 million in plant upgrades against a capital expenditure commitment of $5 million.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by six percent to $730,000

Basic loss per share was flat at 0.02 cents.