Maravi

Lafarge records 100% increase in net profit

Lafarge records 100% increase in net profit
Written by Joan Chirwa

LAFARGE Cement Zambia Plc has recorded slightly over 100 per cent increase in its net profit during the first half of this year compared to the corresponding period in 2007.

Company secretary Bubile Mupeso stated in the financial results for the first half of 2008 that profit gained for the period under review grew to K34.1 billion from K16 billion recorded during the corresponding period last year.

Lafarge recorded revenue of K168.4 billion during the first half of 2008 compared to K129.8 billion gained in the corresponding period last year.

“Profit before taxation was K49,413 million from K20,642 million recorded in 2007,” Mupeso stated. “Earnings increased in line with the operating performance. Volumes also increased by six per cent over the same period primarily as a result of the extended shutdown in the first quarter of 2007. Operating margins increased as a result of strict cost controls and a lower depreciation charge.”

Mupeso also stated that demand for cement remained strong during the period under review although production was still inadequate to cover the total requirements for the commodity.

“The company imported cement, when available, to reduce the deficit,” Mupeso stated. “The performance of both plants declined in the first quarter due to power interruptions, consequent motor failures, wet materials and breakdowns due to the continuous high level of operation.”

And the company recorded an increase in its earnings per share of K170 from K80 the corresponding period last year.

It has however recommended that no interim dividend be declared for the first half of 2008.

Labels: LAFARGE

posted by MrK @ 12:15 AM