Lafarge projects $90 million revenue in F13

Published: 10 June 2013

Lafarge's full year revenue is projected to increase by 29% to $90 million compared with $70 million recorded in 2012, MD Jonathan Shoniwa has said.

Giving a trading update after publishing finals for the year ended December 31 2012, Shoniwa said Lafage cement demand for the first 2 months improved by 6% compared with the same period last year.

"The market remains predominantly driven by individual home builders while there are a number of construction projects in the pipeline which should boost demand should they materialize," he added.

In order to grow revenue, the Company has increased impetus on other non-cement products such as aggregates and paints. Year to date revenue on these products has improved by 33% compared with the same period last year.

In terms of financial performance revenue in the first 2 months grew by 7% to $11 million compared with $10.2 million for same period last year.

Profit margins at 9% are expected to improve driven by economies of scale and improved production efficiencies following the successful completion of the plant maintenance exercise and, cost reduction initiatives which the company embarked on last year.

About $3.3 million will be spent on capital expenditure during the year and this is expected to improve plant efficiencies. Cash generation is also expected to improve in line with improved operating margins and working capital management.

Commenting on the 2012 financials Shoniwa noted that operating profit was affected by the once off re-organisation staff retrenchment costs of $3.5 million.

- zfn

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