Lafarge Zimbabwe revises revenue forecasts upwards

Lafarge Zimbabwe has revised its revenue forecast upwards for 2012 for the second time this year after the group reported a significant rise in profits for the first half driven by increased sales.

The company is now expecting year-end revenue to reach US$70m, nearly US$10m more than the US$62m projection it made at its AGM held in May this year.

The Independent of Zimbabwe reported managing director of Lafarge Zimbabwe, Johnathan Shoniwa saying that in 1H12, nationwide cement demand rose 190.9 per cent to 429,000t, with Lafarge’s volumes up 44 per cent to 174,000t during the period. He added that Lafarge’s market share had increased significantly as it had enhanced production and improved sales and marketing efforts.

Revenue for the six months to June rose 57 per cent to US$34.4m, while EBITDA increased to US$6.3m from US$1.9m a year earlier. Operating profit reached US$3.8m in 1H12 compared to a loss of US$400,000 in the first half of 2011.

He noted that margins were low, a development that was largely consistent with the state of the economy. Gross profit was at 29 per cent, operating profit margin at 10 EBIT at 17 per cent, and profit after tax a seven per cent.