- Cement sales volumes increased by 24% in the first five months of 2021
- Dry Mortar volumes grew by 105%
- Revenue correspondingly grew by 31%
Harare – Listed cement manufacturer and distributor, Lafarge Cement has reported improved sales volumes across all business segments for the first five months of the year accredited to an uptick in demand from individual home builders and government for infrastructure projects.
“In line with the 2021 Strategic Agenda the business achieved volume growth leveraging on the growing market demand in the Individual Home Builder segment as well as the ongoing major infrastructure development projects led by the government,” the company said in a trading update.
In the period from January to the end of May 2021, the company reports that cement sales volumes increased by 24% when compared to the same period last year, weathering the adverse impacts of COVID-19 and a subsequent lockdown introduced to curb its impact in the first quarter of the year.
Dry Mortar volumes posted an even bigger improvement after growing by 105% when compared to the same period last year.
This comes in a period in which the company commissioned its US$2.2 million Dry Mortar plant which is effectively working in increasing production volumes.
With this new plant, the Dry Mortars production capacity is expected to increase from 7000t per annum to 100000t per annum.
Meanwhile, the company’s Binastone retail franchise also followed the same upward trajectory, recording a 55% uptick, an improvement largely hinged on the use of online platforms for sales.
“This growth in the retail franchise business was further strengthened by the growth in purchases made on the Binastore e-commerce site facilitating business continuity during lockdown periods,” the company highlighted.
Complementarily, the company’s overall revenue saw a 31% improvement in inflation-adjusted terms while EBITDA went up 2% on the back of this revenue growth and “effective cost reduction initiatives implemented in 2021 and revenue growth.”
The company is also engaged in the construction of a Vertical Cement mill that is expected to be completed in March 2022.
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