HARARE, September 28 (The Source) – Lafarge Cement recorded a 12,6 percent decline in revenue to $23,1 million in the six months to June from $26,5 in the prior year weighed down by a decline in sales.
The company recorded a $1,76 million loss before interest and tax to $2,25 million in the same period last year.
“The heavy and sustained rainfall in the first quarter was a drawback in the cement industry. Some construction related projects were delayed, resulting in restrained sales. In addition, there was increased destocking by cement key stockists as they minimised risk associated with moisture level degradation and cement shelf life concerns on very slow moving stock,” company secretary, Host Mapondera said in a statement accompanying company results on Thursday.
Lafarge recorded a 13 percent decline in sales to $23,14 million compared to $26,5 million in the prior year.
Finance costs went up from $127,237 last year to $162,013 as the company carried an overdraft of $71,000 in 2017 from $65,000 last year.
“The company achieved a reduction in cost of sales following normalisation of plant operations after the upgrade of the environmental control unit. This eliminated a significant portion of inbound logistics costs related to input costs during the plant downtime period,” Mapondera said.
Current liabilities increased by 5 percent to $36,6 million accounting to trade payables.
Total current assets increased by 5 percent while total equity reduced by 4 percent to $38,82 million due to a reduction in retained earnings.