Lafarge Cement Zambia is anticipating seeing increased demand for cement during the second quarter of 2010. Demand declined from November 2009 when the rainy season reached its peak.
And Lafarge Cement has recorded a 103 per cent pretax profit from K125bn in 2008 to K255bn in 2009 which was driven by higher volumes and the efficiencies from the Chilanga two plants.
The company’s revenue also increased from ZMK430bn in 2008 to ZMK737bn in 2009 and its operating profit also increased to ZMK283bn from ZMK145bn in 2008 and profit for the year also increased to ZMK 172bn in 2009 from ZMK74bn in 2008.
Releasing financial statements for the past year, company secretary Harriet Kapekele stated that during 2009, domestic and regional demand was subdued until April when cement demand increased substantially until mid-November when the market softened.
“In 2009 input costs increased as a result of the weaker kwacha in the first half of the year and due to the main raw materials being imported but preference is given to local suppliers when sourcing raw materials and services where reliability of supply, quality and cost are acceptable,” Kapekele stated.
“And demand for cement in the region was subdued from mid-November 2009 but the outlook for 2010 is positive and it is anticipated that conditions will improve towards the end of quarter one of 2010.”