Chilanga Cement PLC (Zambia) – HY2022 PBT up 10% to K134 million

Chilanga Cement PLC (CHIL.zm) HY2022 Interim Report

Half Year Key Figures

• Sales revenue at K803 million for the period down by 16% compared to 2021.
• Profit before tax up by 10% at K134 million compared to K122 million in 2021.
• Closing cash position at K98 million compared to K192 million in 2021.

Half Year Company Highlights

The business has recorded a 10% increase in profit before tax for the period compared with the same period last year.

This is despite a notable reduction in overall demand in the country and export markets having a challenge with foreign currency access. We continue to leverage our superior quality to offer the best to our customers.

The stable currency and operating environment mitigated some of the costs in view of the fuel increases experienced in the first half of the year.

In the period under review, The Company concluded the Mandatory Tendering Offer to the minority shareholders. The Mandatory offer by Huaxin to the minority shareholders of Chilanga Cement opened on 12 May 2022 and closed on 13 June 2022 at an offer price of K13.38 per share. At the close of the Offer period on 13 June 2022, a total of 12,375,420 shares were tendered for sale to Huaxin via the Form of Acceptance. This level of acceptance represents 24.74 % of the 50,013,468 target shares that were the subject of the mandatory offer or 6.19% of the total shareholding in the Company.

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