Lafarge Zimbabwe’s operations were largely stable for the first three months of the year despite the emergence of Covid-19.

The group said its volumes remained in line with prior year and 3 percent above budget, while average selling prices (ASP) during the period under review were below those of the prior year, although the product mix was
favourable against budget.

Distribution costs were maintained at below both prior year and current year budget.

During the period under review a US$2 million Dry Mortars Mix (DMX) expansion project is expected to be commissioned in August 2020.

For Q2, Lafarge Cement is expecting a 30 percent decline in volumes during the current quarter as a result of Covid-19.

Said Larfarge:

“The declaration of the Covid-19 outbreak as a pandemic and the national lockdown effected from the 30th of March has an inevitable impact on second quarter (Q2) 2020 volumes.

“It is projected that Q2 2020 volumes will decline by 30 percent, with the possibility of spill over risks impacting the second half of the year.”

The group expects to take a knock going forward from Covid-19.

“The ripple effects of the lockdown and border closures are still to be fully quantified, but the business expects to continue to assess the effects of the Covid-19 outbreak into the second half of the year.

“The net effect will be a slowdown in aggregate demand in the core individual home builder market with foreign funded projects becoming more and more essential in sustaining operations.”