Lafarge reports $3,1mln profit

Lafarge reports $3,1mln profit

HARARE, March 30 (The Source) – Lafarge Cement’s Zimbabwe unit reported a 59 percent increase in profit from $1,9 million to $3,1 million for the full year to December 2016.

Profit was driven by an increase in other income, which the company did not specify, from $324,523 to $6,6 million.

Revenue was flat at $61 million.

Cement sales grew two percent as the company focused on segmented market and selective regional penetration strategies.

The company reported a 121 percent increase in cash from operating activities to $15,95 million of which $8,83 million was invested in property plant and equipment.

Gross profit increased by 18 percent, largely driven by cost savings in operations, plant maintenance and better inventory control.

Earnings before tax and interest (EBIT) increased by 366 percent to  $4,47 million from a negative $1,7 million in 2015.  

Assets increased in value from $65,1 million to $81,9 million.

The company ended the year with no borrowings with the exception of an unsecured and unspecified overdraft. It declared a final dividend of 2,5 cents per share for the period.