Lafarge Zimbabwe losses increase to US$2.2m

Lafarge Zimbabwe has announced a 1H16 loss of US$2.2m, an increase from the 1H15 US$1.3m loss, the Insider reports.

Competition from cheap imported cement and rising output from other domestic producers had had an impact on profits, as had softening demand caused by Zimbabwe’s economic difficulties, said the company.

Despite this, sales revenues for the first six months of the year were up slightly, rising by 4.3 per cent to US$26.5m.

Lafarge Zimbabwe Board Chair, Kumbirayi Katsande, said: “The volumes of cement sales remained subdued due to increased competitive activity in the total market following the influx of cement imports into the country as well as the entry of a major competitor into the Harare market.

 “The market continues to experience intense competitive pressure as key players in the industry seek to protect share in the core Harare market which remains the single largest market by geography and volume in the country.”