LISTED cement manufacturer, Lafarge Cement Zimbabwe inflation adjusted profit after tax grew significantly to $178,2 million during the year ended December 2019,driven by mainly by increased revenue .
This was an improvement from a profit position of $8,2 million achieved in 2018.
In a statement accompanying the 2019 results, Lafarge said it did not accrue new borrowings during the year under review.
In the context of a hyper-inflationary environment and fundamental policy reforms, recorded a positive performance in the year 2019, marking a significant turnaround for the local cement manufacturing giant.
“The company recorded its best financial performance in over 5 years, posting inflation adjusted revenues of $ 919 million, a stellar 104% leap from $ 449 million in 2018,” the company said in a statement.
While the business maintained its volumes flat on prior year level at 323,000 tons, a result which was achieved in the context of a 14% decline in the construction sector, pointing to a significant expansion of the business in a shrinking market.
During the period the company began to implement the US$25 million capital expansion programme. The major projects the business will invest are set to improve cement milling capacity, automate the Dry Mortar Mix (DMX) plant and improve production of agricultural line and other key projects to improve power supply and cement storage.
“The manufacturing of the US$2 million DMX equipment was completed and installation of the equipment on site set to be completed in the second half of 2020,” the company said.