Lafarge Cement Zimbabwe Limited projects profitability in 2016 after recording a $1.9 million loss in after-tax profit for the year ended 31 December 2015.
The company recorded a profit after tax of $80, 950 in 2014.
Lafarge commented that the economy experienced serious difficulties on a sustained basis because of a combination of factors such as the liquidity crunch, reduced consumer spending due to continued job losses and a poor agricultural season arising from a late and erratic rainfall season.
The group stated that sales volumes increased to $61.55 million from $60.45 million, representing a 2 per cent growth due to sales volumes.
Earnings before interest and tax decreased by 230 per cent to a loss of $1.68 million during the period under review from a profit of $1.29 million in 2014 driven to a large extent by these provisions.
Total assets decreased by 13 per cent to $65 million in 2015 from $69.9 million in 2014 due to the reduction in inventory from the obsolescence provisions.