Zambia’s leading cement and aggregate manufacturer and LarfargeHolchin local unit, Larfarge Zambia recorded an impressive sales revenue of K1,142 million (about US$95 million) for the year 2018, up by 13% compared to 2017.
The company attributed its performance to strong market growth of approximately 30% with Cement domestic volumes up 10% vs. 2017 despite the Cement export volumes being down 25% in 2018 when compared to 2017.
Energy cost increases adversely impacted production cost but was mitigated by strong cost saving initiatives.
The company stated that the Zambian cement market underwent a strong recovery in 2018. Additionally, the dry spell in January allowed many contractors to continue working without disruption in the first quarter; a period in which large construction firms typically undergo an industrial break.
Domestic cement market is estimated at approximately 2.1 million tons of cement representing an average growth of approximately 30% compared to 2017. New export markets continue to be developed in the region, the company stated in its security note availed to the Zambian Business Times – ZBT And Jimmy Khan, the newly appointed Chief Executive Officer of Lafarge Zambia, said that “Company continued to focus intensively on commercial transformation and sustainability for continued growth. Sales volume performance for the year was favorable thanks to the Binastore retail channel rollout and other innovations from our teams such as Supablock”.
He further stated that “the plants’ strong cost management initiatives mitigated the impact of production cost increases with Margins remaining the same as 2018. I am pleased with the improved results”.
Lafarge Zambia now has competition from Dangote Cement and Sinoma cement, whose brands are competing head to head for the share of the local retail market.
