Lafarge Cement Zambia has projected that domestic and regional demand for cement will remain strong, supported by the proposed infrastructure, power generation and mining projects to be undertaken in the country.
The company’s operating profit increased by 18 per cent to ZMK95bn (US$19.2m) in the first six months of 2011, from ZMK80bn recorded within the same period last year.
Net profit also increased by 23 per cent to ZMK67bn from last year’s figure of ZMK55bn due to the net finance income as a result of the loan being repaid in 2010.
"The tax charge continued to benefit from the high proportion of export income. The cash flow and financial position remained strong. Cash generation through focused control of costs and working capital remain the key priority," stated Lafarge Cement secretary Harriet Kapekele, in an interim financial statement ending June 30, 2011.
The company stated that domestic demand has improved substantially over 2010 while regional demand grew more slowly with the DR Congo and Burundi being the largest markets.