Chilanga Cement sales revenue down by 16%, as it focuses on growing retail market

Chilanga Cement PLC has posted K1,784 million in sales revenue for the financial year ended December 2022 down by 16 percent compared to 2021.

During the financial year under review, the company demonstrated a highly resilient performance.

It continued to focus intensively on commercial transformation and sustainability for continued growth despite the challenges in the operating environment such as tight liquidity, competition and contracting local market.

This is according to the Audited Results the year December 31, 2022 posted on the Lusaka Security Exchange (LuSE).

Read more: LuSE reports November inflation at 9.90%, as year 2022 closes with 24.9m shares traded

The report further indicated that the company had recorded several improvements in industrial performance, commercial transformation and financial performance.

It pointed out that post -acquisition of the company by Huaxin Group from Holcim Group, it focused on shareholders’ value creation through expanding its customer base and promoting the integration of employee cultural diversity.

Highlighting its financial performance, Chief Executive Officer Chai Jianping said while competition in the Zambian cement industry remained very high, the company increased its earnings per share to K1.65 compared to K1.46 in 2021, representing 13 percent increase.

The company’s profit before tax was K434 million, three percent increase compared to K423 million in 2021.

According to financial results, the cash generation of K436 million compared to K155 million in 2021

“This was achieved through the various production and operational cost-efficiency initiatives implemented during the year,” Jianping said.

He said at the next Annual General Meeting, the Directors will propose a final dividend of K1.00 for the year December 31, 2022.

Jianping said despite the challenges the business faced in the domestic market, the company continued to focus intensively on commercial transformation and sustainability for continued growth.

“The rollout of the company’s sales representatives
based in their areas of operations accelerated the expansion of the domestic market and enhanced value for our customers.

“In 2023, the company will focus on growing its retail channel, expanding its export market, and optimizing,” Jianping said.

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