Lafarge Zambia reports first-half increase

Lafarge Zambia plc has posted a four per cent profit after tax from ZMW180.7m ((US$18.4m) in 1H14 to ZMW187.1m in the same period of 2015 despite the country's economic challenges and political uncertainties in Democratic Republic of Congo (DRC), which constitutes the company’s major export market.

The company also recorded a 14 per cent turnover of ZMW699.1m in 2015 from ZMW614.3m in 2014.

Lafarge Zambia CEO Emmanuel Rigaux said domestic demand in the second half is expected to continue to slow down until Eurobond proceeds are directed towards infrastructure and construction activity.

“Strong focus in the second half will be placed on adjusting our cost base wherever necessary. Market activity was subdued in the first half of the year in the Zambian market, and negatively impacted by political uncertainties in the DRC, which constitutes our major export market. The successful issuance of the US$1.25bn by the Zambian government is expected to generate increased construction activity,” Mr Rigaux said.