- Volumes across the board increased by 18%
- Cement sales volumes increased by 96%
- Net sales more than doubled to ZWL11 billion
Harare- Following a series of dampened productivity and decreased sales since the first quarter of 2022, Cement maker, Khayah Cement Zimbabwe which rebranded from trading as Lafarge Cement Zimbabwe has finally posted volume growth for the first quarter ended 31 March 2023 while the net sales more than doubled.
Khayah's volumes in Q12022 declined by 55% and 56% during the half year while the third quarter for 2022 recorded declines across all units. This was due to a confluence of calamities including power outages, the collapse of other machines, the decommissioning of cement ball mills to pave the way for vertical cement mill (VCM) in Q32022 and management issues.
However, following a successful exit from Associated International Cement Limited, the business performance improved during the period under review with total volumes increasing by 18% across the board.
“The company’s industrial performance increased with the installation of VCM in Q32022,” said the company.
Cement sales volumes increased by 96% while dry mortar product sales volumes surged by 121% partly driven by the strong demand for the agricultural lime range Supagrow.
As a result of stronger volumes performance, net sales rocketed by 131% to ZWL11.1 billion from ZWL4.8 billion in 2022 during the same period.
“The sales revolution reflected enhanced production volumes across the business as well as an increase in foreign currency sales,” the Company said.
However, despite aggregate volumes doubling against the same period last year, clinker production declined by 28%.
Clinker volumes were affected by inconsistency in plant performance, which forced the company to resort to importation to meet production needs.
The company said it remains optimistic going forward based on good management and investments carried out during the first quarter.
“The increased milling capacity has created opportunities for the development of high-strength cement varieties and consistent product supply,” added the company.
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