Lafarge Cement Zimbabwe recorded a US$695m loss in 2021, compared to a US$5bn profit in the same period a year earlier. The fall is reportedly due to the negative impact of disruptions from the roof collapse at one of its cement mills and the adverse effect of the COVID-19 pandemic. This led to a 21 per cent decline in 2021’s volume uptake and a subsequent loss before tax of US$364m, versus a US$3.2bn profit in the previous year.
The collapse of the mill plant halted operations between October 2021 and mid-February 2022, significantly impacting the availability of its products on the market. COVID-induced lockdowns meant Lafarge also encountered challenges in the form of disruptions to work routines, social structures, supply chains and operations. As a result, revenue for 2021 fell by 35 per cent YoY to US$7.2bn, compared to US$11.1bn in 2020.
However, there was a 19 per cent volume growth in the dry mortar segment due to strong demand following the commissioning of the new automated dry mortar plant earlier.
The company’ operations in the course of 2021 were also sustained by clinker sales.
