Khayah Cement Ltd. Reports a 117% Increase in Cement Volumes due to Production Ramping Up

Published On: February 8, 2024Company: Khayah Cement Limited (KHCL.zw)
What significant achievement was made by Khayah Cement Limited in the first half of 2023, despite challenging economic conditions?
Despite challenging economic conditions, Khayah Cement Limited managed to increase its inflation adjusted revenues by 210% in the first half of 2023 and also maintained a high demand for their cement products.

Summary

  • The company changed its name from Lafarge Cement Zimbabwe Limited to Khayah Cement Limited effective from 9 May 2023.
  • The economic environment in the first quarter of 2023 showed signs of stability, with annual inflation declining from 101.5% in December 2022 to 75.2% in April 2023. However, the foreign currency exchange rate depreciated considerably between April and June 2023, leading to heavy inflationary pressures.
  • Despite challenges, Khayah Cement Limited benefitted from several measures by the monetary authorities, including an increase in the foreign currency retention rate and a decrease in the bank lending rate.
  • The demand for Khayah’s cement products remained strong throughout the period.
  • For the period under review, inflation adjusted revenues increased by 210%, however, the business incurred an inflation adjusted operating loss of ZWL378.4 billion mainly due to foreign currency exchange losses.
  • Net long-term borrowings for the company stood at ZWL 268.3 billion as at 30 June 2023.
  • The company maintains a strong focus on health, safety, environment and quality systems.
  • Given the current economic uncertainties, the Directors have not declared a dividend.
  • The company expresses gratitude to stakeholders, employees and leadership.
  • Despite the difficult conditions, the company’s long-term outlook remains positive, with growth to be driven by agricultural, household, and government infrastructure sectors.

Useful links

About Khayah Cement Limited (KHCL.zw)

Khayah Cement Limited (KHCL.zw) manufactures and distributes cement and allied products for the building industry. Formerly known as Lafarge Cement Zimbabwe, the cement product range includes Portland composite cement, which is the cement used in beams, foundations and load-bearing structures; Supaset, used by concrete brick makers and homebuilders; Masonry cement, used for general construction work such as screed flooring, brick and mortar and plastering mortar. Khayah Cement also sells a range of allied products which include washed sand, 6mm stones, 20mm stones and crusher run. Specialised products include Agricultural lime, Colorbrite and Snolime, pre-sanded Cemwash and Impermo.

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