Lafarge’s sales escalates by 23%  

Lafarge Cement Zimbabwe’s has recorded an increase in sales, this has been revealed in the year to date 31 May 2021 trading update.

The surge in sales have been owed to the 2021 Strategic Agenda which is anchored on the core priorities of Health, Cash and Costs.

In a statement, Lafarge Company Secretary Faithful Sithole said 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.

“Cement volumes for the period increased by 23.7% compared to prior year in spite of the COVID-19 national lockdown instituted in the first quarter.

“In the same period Dry Mortar products volumes grew by 105% compared to the same period last year,” Sithole said.

The company’s franchise Binastore recorded a significant 555% growth in volumes compared to the same period in prior year and the 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.

“As a result of strategic changes in product portfolio mix the average selling price was favourable against budget.

“This, coupled with the significant growth in volumes, secured the company a 346% increase in revenue compared to the same period prior year,” Sithole said.

The company continues to innovate in products and services with an objective to offer continuous improvement in convenience and customer satisfaction through a rich product mix.

In the period under review, the company launched the country’s first waterproof cement under the label WaterShield as part of its progressive product innovation and expansion objective.

“The installation of the new USD 2.2million automated Dry Mortars (DMO) plant was completed and commissioned in the period. With this new plant the Dry Mortars production capacity increased from 7000t per annum to 100000t per annum.

“The installation work for the new Vertical Cement Mill commenced in March 2021 and is expected to be commissioned in March 2022. This project is the last of the three recapitalization projects lined up in the business expansion plan announced in 2019,” Sithole said.

 

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