Lafarge Zambia (LuSE:Lafarge) saw net profits decline by 23.9% year-on-year to K323 million in 2015. Earnings per share came in at K1.61 (K2.12 in 2014):
The bottom line was impacted by pricing pressure, a rise in energy costs, depreciation of the Kwacha and tough export market. Profit before tax came in at K484 million (down 26% y/y) – with K17 million in restructuring costs baked in.
Lafarge experienced a 6.4% y/y drop in revenue to K1.3 billion:
Sales volumes were marginally lower from the previous year despite intense competition from Dangote Cement.
Lafarge's stock price fell by 9.9% in 2015 to close at K23.44.
The Board of Directors recommended a final dividend of K0.50 per share for the year ending 31st December 2015.
The company released the following outlook for 2016:
Our markets are expected to be challenging again in 2016 on both prices and volumes. We will continue to focus on our export markets ( Democratic Republic of Congo (DRC), Malawi, Zimbabwe and Tanzania). Our partnership with the rail authorities including Zambia Railways Limited is set to increase the flow of products by rail to our foreign markets and assert Zambia as a regional export hub.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *