Chilanga Cement PLC Reports 36% Increase in Earnings Per Share in 2023 Amid Economic Challenges

Published On: March 26, 2024Company: Chilanga Cement PLC (CHIL.zm)
What were the key factors contributing to the 36% growth in earnings per share?
The key factors contributing to the 36% growth in earnings per share were the implementation of significant production and operational efficiency initiatives and the resilience of the business model, which is based on innovation and quality.

Summary

  • The company reported strong operational and financial performance in 2023, despite a challenging economic environment which saw significant currency fluctuations, increased competition, and operational cost challenges.
  • Despite high competition in the Zambian cement industry, earnings per share increased by 36% from K1.65 in 2022 to K2.24 in 2023. This was achieved due to significant production and operational efficiency initiatives implemented throughout the year.
  • An interim dividend of K1 per share was proposed and paid in 2023, up from nil in 2022. A final dividend of K1.5 per share is expected to be proposed at the next AGM, making the total dividend for the year K2.5 per share.
  • The company reported a 13% growth in revenues and a 47% growth in profit before tax, driven by structural cost savings, various marketing strategies, and continued efforts from staff.
  • Domestic demand remained resilient, with steady growth expected to continue due to various infrastructure projects outlined in the 2024 National Budget. Regional demand is also expected to remain strong.

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About Chilanga Cement PLC (CHIL.zm)

Chilanga Cement Plc is a leading cement producer in Zambia, listed on the Lusaka Securities Exchange. The company is based in Lusaka and produces cement for construction, road building, and other civil engineering projects.

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