RYAN CHIGOCHE
Listed cement manufacturer, Lafarge Zimbabwe, has projected negative financial results after its mills at Manresa were damaged, Business Times can report.
The roof at one of the mills collapsed last year and the cement manufacturer has completed investigation and assessment of the damaged plant, company secretary Faith Sithole said.
“…shareholders are advised that the disruption of cement production as well as the cost of the ongoing repairs will have a negative effect on the financial results of the company Quarter 1, 2022. In the circumstances, shareholders should continue exercising caution when dealing in the company’s securities until a further announcement is made,” Sithole said in a cautionary statement this week.
“The company is still working diligently on the restorative works necessary so that normal operations may resume as soon as possible.”
The development means that cement production would continue to be depressed throughout the first quarter of this year.
In its trading update for the quarter to September 30,2021, Lafarge’s dry mortar business grew 95% compared to the same period last year with the huge increase attributed to the increased capacity in the business following the installation of the new plant commissioned in the first quarter of 2021.
The Binastore retail franchise recorded a massive 201% growth compared to the same period last year with the retail franchise growth being spurred by Binastore e-commerce purchases made particularly during the lockdown period.
Lafarge reported a 2.6% cement volume growth versus the same period last year.
Sithole attributed the impressive performance to the increasing demand of cement especially from government infrastructural development projects
