Lafarge Zambia (LUSE: LAFARGE) reported a 25% year-on-year increase in net profit to K424 million in financial year (FY) 2014. Earnings Per Share (EPS) was up to K2.12 (K1.69 in 2013):
The increase in net profit was driven by:
- Favorable sales volumes
- New products
- Cost control measures
- Improved industrial performance
- Positive forex gains
Operating profit increased by 23% year-on-year to K586 million in FY 2014.
There was strong revenue growth of 22% year-on-year to K1.4 billion as the company achieved record sales volumes of 1.22 million MT in FY 2014:
Sales volumes saw a marginal increase of 4% from the previous year.
Lafarge also completed the Lusaka Stock Exchange (LUSE) free float compliance program which qualified them to become a 'Zambian Citizen Empowered Company'. Their stock price closed the year at K26, up 65% in 2014.
The Directors recommended a final dividend of K0.85 per share for FY 2014 to be approved at the annual general meeting next month.
In their outlook for 2015, the company said:
Demand is expected to remain strong in 2015, supported by continued growth in the construction industry in Zambia and the DRC. The company’s ‘Building Better Cities’ ambition will remain at the heart of our new, innovative products and construction solutions as well as our corporate social responsibility programs.
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. * * *