Lafarge Cement revises full-year revenue target upwards, Zimbabwe

Rising cement demand in the Zimbabwe market has resulted to Lafarge Cement Co upgrading its revenue forecast for full year 2012 to US$62m, from an initial forecast of US$60m.

During a trading update at the company’s AGM, Jonathan Shoniwa, said increased capacity utilisation and cement demand had resulted in Lafarge reviewing its initial revenue target upwards by US$2m.

"The level of operation has allowed us to review revenue targets for the full year to US$62m, from the initial US$60m," said Shoniwa.

The company last year recorded US$50m full year revenue following a refurbishment exercise that increased capacity utilisation from 75 to 90 per cent against a 19 per cent decline in exports culminating from an increased focus on local demand.

Shoniwa said turnover in the four months to April 30, 2012 had risen by 35.2 per cent to US$21.9m, with the operating margin having improved to 14 per cent from 10 per cent last year. Since the economy was formally dollarised in January 2009, cement demand for individual home projects increased as people focused on improving and building residential houses.

"Cement demand was up 28 per cent and was predominantly retail, although construction had made up 18 per cent of demand.

"The focus would continue to be on the domestic market and increasing market share," he said. About US$4.5m is expected to be spend on capital expenditure during the current reporting season. This is expected to result in better plant reliabilities and improved efficiencies. Larfarge has capacity to produce 450,000tpa of cement.