Domestic sales fire Lafarge revenues
17/03/2013 00:00:00
by Roman Moyo
ZIMBABWE Stock Exchanged (ZSE) listed Lafarge Cement Zimbabwe’s profits rose to US$4,6 million for the year to December 2012 from US$3,5 million in 2011, the company has revealed. Earnings per share also increased 32 percent to 0,06 cents from 0,04 cents in during the same period.
According to its latest financial results, Lafarge’s revenues rose 41 percent to US$70 million, powered by firmer domestic sales which were up 48 percent.
The group is now projecting a 29 percent increase to US$90 million for the year ended December 31 2013 compared.
Managing Director Jonathan Shoniwa said targets was achievable given that demand for the first two months of the year had improved by 6 percent compared with the same period last year.
Group chairman Muchadeyi Masunda said finance costs went down 21 percent to US$0,54 million as the group contained borrowings.
He said the group spent US$3,5 million on a retrenchment exercise which ate into the company’s top line.
“Net cash generated by operating activities declined from $5,6 million in 2011 to $4,7 million mainly due to an increase in inventory levels and taxes paid,” he said, adding that spare stock was increased to improve the company’s preparedness for emergency breakdowns.
“Cement and clinker stocks were also relatively high as demand tumbled during the month of December owing to heavy rains,” he said.
The housing backlog in Zimbabwe is so huge and mortgage financing is required to support residential projects going forward which would boast Larfage’s operations.
Shoniwa said the market remains predominantly driven by individual home builders while there was a number of construction projects in the pipeline which should boost demand should they materialize
“In order to grow revenue, the Company has increased impetus on other non-cement products such as aggregates and paints. Year to date revenue on these products has improved by 33 percent compared with the same period last year he said.
Masunda added that local demand for cement would remain strong, anchored by growth in mining, construction and infrastructure development.
The cement maker, however, did not declare a dividend but said it was looking into long-term and cheaper finance to mitigate non-dividend payment.
“Following several years of lack of sustainable investment arising from foreign exchange shortages, the business continues to experience urgent working capital and capital expenditure requirements to sustain plant operations and improve efficiencies,” said Masunda.
Labels: LAFARGE
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Businessman denies using Rupiah ties to exploit Lafarge
By George Chellah
Sat 15 May 2010, 03:10 CAT
Time Tracking managing director Umesh Patel has been accused of forcing some officials at Larfage Cement to give him business on account that he is one of the financiers to the ruling MMD. But Patel yesterday dismissed the allegations as rubbish. According to sources at Larfarge, Patel has been boasting that he is very close to State House and President Rupiah Banda.
“In fact, Mr Umesh Patel has been threatening to cause the deportation of two senior managers at Lafarge using his connections with State House. It is not only Larfarge that is in trouble,” the source said.
“Umesh Patel has grown big-headed because he is very close to the President. In fact, we are aware that he was at State House yesterday (Thursday) in the company of two people. But this nonsense must be stopped. He is going round boasting that he supports the MMD financially and meets President Banda as and when he feels like so nothing can happen to him.
The other day he was boasting that he donated K48 million to the MMD. Even if Mr Patel is donating money to MMD, we do not think President Banda can allow his behaviour. It is possible Mr Patel is abusing the President’s name. We are not convinced that the President can condone that behaviour.”
But when reached for comment yesterday, Patel said: “I don’t think that’s right…oh my God! Whoever told that information to you, tell him to go to hell because that’s all wrong. Okay, phone me on Monday when I am in town.”
When further pressed to give his comment over the matter, Patel answered: “It’s all rubbish!”
Labels: BUSINESS, CORRUPTION, LAFARGE, RUPIAH BANDA, UMESH PATEL
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Property seizure grounds Lafarge operations
Written by Chiwoyu Sinyangwe
Friday, September 11, 2009 4:54:26 PM
LAFARGE Cement Plc has suspended operations after court bailiffs started seizing its property to execute a High Court ruling which awarded US $13 million to Citizens for a Better Environment (CBE) for environmental liabilities caused by the giant cement manufacturing company.
Head of Corporate Affairs Eugene Chungu said yesterday that the ruling had negatively affected the operations of Lafarge Cement Plc since last Friday when the execution of the ruling started, resulting in some properties for the company being seized by bailiffs.
Chungu did not immediately indicate whether Lafarge Cement Plc would resume operations after Kitwe High Court judge Catherine Makungu stayed the execution of an earlier ruling pending appeal in the Supreme Court.
According to the ex-parte order for stay of execution dated September 7, 2009, judge Makungu ordered that the execution of the judgment stays pending appeal to the Supreme Court.
Chungu, however, refused to comment further on the matter but said Lafarge Cement Plc was optimistic about getting a positive ruling in the Supreme Court where the company had appealed against the ruling of Kitwe High Court deputy registrar Justin Mukolwe.
“That is the sad reality. I am afraid I can’t say much except to say that the ruling [of Kitwe High Court] has negatively impacted on our operations,” Chungu said. “It is now over a week because it started on Friday. But we have been given leave to appeal to the Supreme Court and we are optimistic about the outcome.”
Some local contractors had this week complained about the failure to access cement from Lafarge Cement Plc, a move they said would negatively impact on their projects.
“We have not been clearly told what the problem is but we are unable to pick cement from Chilanga because they have suspended operations owing to the legal issues,” complained one local contractor on condition of anonymity. “But you see, this will delay the completion of our projects and it means extra costs which are unnecessary.”
According to company sources, the company was forced to suspend operations after court bailiffs started seizing Lafarge Cement Plc’s properties after the ruling that awarded CBE, suing on behalf the citizens US $13.2 million for environmental liabilities caused by operations of Lafarge Cement in Ndola and Kitwe.
Mukolwe made the ruling against Lafarge Cement Plc following its failure to remit contributions towards the Environmental Protection Fund (EPF) under the Ministry of Mines.
According to the judgment dated February 13, 2009, CBE was awarded US $2, 588, 796.77 payable into the EPF as summation of the statutory cash liability on its operations in Ndola and Lusaka.
CBE was also awarded more than US $10,355,187.05, payable into EPF as statutory summation of the total redeemable bond liability for both plants.
Damages were also awarded to the sum of US $323,560.
Labels: EUGENE CHUNGU, LAFARGE, PROPERTY SEIZURE
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Lafarge Cement follows developments at Maamba Collieries
Written by Kabanda Chulu
Wednesday, July 29, 2009 3:09:58 PM
LAFARGE Cement Zambia chairman Muna Hantuba has said the company is following with interest the developments at Maamba Collieries so that its full production can result in availability of local materials for cement production.
Last week, mines minister Maxwell Mwale, without being specific, announced that the Zambia Development Agency (ZDA) was currently negotiating with a preferred strategic equity partner, Nava Bharat Ventures of Singapore, for Maamba Coal mines and a thermal power plant.
When asked why the company prefers to buy materials from outside the country, Hantuba said there must be consistency in the supply of raw materials to avoid shortages that could affect plant machinery. He said the company was looking forward to work with Maamba Collieries Limited once it attained full production.
“If Maamba comes on stream it will avail us the opportunity to purchase local raw materials. In fact we will prefer to source materials locally in order to cut down on costs of transportation,” Hantuba said.
“But we do not want to disrupt running contracts with foreign suppliers especially that now the plant is huge and it is consuming large quantities of materials and we do not want to experience problems in case there is a shortage of materials.”
Due to the inadequacy and inconsistency in supplies from Maamba Collieries Limited and other smaller Zambian coal mines, Lafarge Cement Zambia has entered into long-term contracts with Hwange Coal Mines of Zimbabwe to ensure continued supplies of raw materials.
The Zambian government wholly owns Maamba Collieries Limited through its subsidiary company, ZCCM Investment Holdings (ZCCM-IH) and negotiations have been ongoing with a preferred bidder, Nava Bharat, which is likely to get some undisclosed percentage of shares and consequently invest in the country’s largest coal mines.
Labels: CEMENT, ENERGY, LAFARGE, MAAMBA COLLIERY, MAXWELL MWALE, MUNA HANTUMBA, NAVA BHARAT VENTURES, ZCCM-IH
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Satisfy local market before considering exporting, Rupiah urges Lafarge
Written by Kabanda Chulu
Saturday, November 15, 2008 4:48:31 AM
PRESIDENT Rupiah Banda has advised Lafarge Cement Zambia to satisfy the local market before considering exporting the commodity to other countries.
And President Banda directed the management at Lafarge Cement to cooperate with the Ministry of Commerce, Trade and Industry and other stakeholders to ensure that retail prices of cement are not subjected to manipulation by traders.
Meanwhile, Lafarge Cement division president Guillaume Roux has said the new cement production plant has been built with features that would allow less emission of dust and other related particles.
Current wholesale prices by Lafarge stand at K42,000 per 50 kilogramme pocket but traders sell the same product at K65,000.
Officially commissioning the US $120 million new cement manufacturing plant in Chilanga yesterday, President Banda said the people of Zambia have been subjected to escalating cement prices in the past and now an opportunity exists for them to benefit from the new plant through lower prices.
“The rising price of cement in the past few years has been a cause of concern for government, investors and the general public and many Zambians have been subjected to escalating cement prices in the past,” President Banda said. “And may I take this opportunity to appeal to Lafarge management to give priority to the domestic market before considering exports, which should be considered after satisfying the local market.”
He said the commissioning of the plant was timely in that the construction sector was booming with many residential and commercial properties being built.
“We expect the use of cement to expand further as we embark on other economic ventures such as the multi facility economic zones, new hydro-power projects, roads and other infrastructural projects,” said President Banda. “And with the coming on stream of the new plant, I have been informed that the company’s output of cement will double from its current level and that cement output will be far in excess of current demand and the entire nation expects the price to come down so as to end profiteering in this commodity.”
And Roux, who is based in France, said Lafarge International has embarked on establishing 50 per cent of its operations in emerging markets like Zambia.
He said the new plant at Chilanga has state-of-the-art modern features that would allow less emission of dust and other related particles.
“We also utilised three million man-hours in the construction of the plant but with only two minor accidents hence our safety level is high and we are committed to our workers who are essential and we are also involved in various community projects,” said Roux.
And Lafarge Cement Zambia chairman Muna Hantuba said cement would now be delivered at the ‘door steps’ of every customer.
“This is a very good achievement to bring the plant to this level and we received favourable response from banks, the capital markets and other stakeholders,” said Hantuba.
Labels: LAFARGE, LOCAL MARKETS, RUPIAH BANDA
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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.
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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: BUBILE MUPESO, CEMENT, LAFARGE
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Lafarge records 100% increase in net profit
By Joan Chirwa
Thursday October 02, 2008 [04:00]
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: CEMENT, LAFARGE
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Lafarge to import coal from Hwange Collieries
By Fridah Zinyama
Tuesday June 10, 2008 [04:00]
LAFARGE Cement Zambia has been compelled to import most of its coal from Hwange Collieries Company due to lack of adequate coal production on the local market, corporate affairs manager Eugene Chungu has said. Zimbabwe’s coal-mining giant, Hwange Collieries Company (HCC), clinched deals to export more than 300 000 tonnes of coal products to neighbouring Zambia and Namibia.
These transactions entail the supply of 300 000 tonnes of coal fines to Lafarge Cement Company, the biggest producer of cement in Zambia, and 10 000 tonnes of nut pea duff to a Namibian company.
In an interview, Chungu said ideally, it would be better to purchase coal locally but that the biggest producer in the country, (Maamba Collieries), was currently unable to meet the growing demand in the country for the commodity.
“We are on schedule with the Tukule project and will soon be commissioning the project,” he said.
Chungu however noted that if the coal were locally produced, it would reduce the company’s cost of production as the much-needed coal would easily be accessed.
“We have had to consider other alternatives like Hwange because we are looking at the long-term effects of doing business without the much needed coal,” he said. “We have also been obtaining the coal from other sources locally but it is not enough to meet our demands.”
And according to HCC public relations coordinator Burzil Dube, the Lafarge Cement deal will cover the next two years, adding that the company has the capacity to deliver without failure.
“This deal will allow us to supply Chilanga Cement Company with 300 000 tonnes of coal fines over the next 24 months. “While we still have many problems relating to meeting the demand of our customers, I can safely say we will deliver to the Zambians on time. We have an abundance of coal fines throughout the coal field,” said Dube.
There have been concerns about the company’s ability to meet the target as its been experiencing problems.
Labels: LAFARGE
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