Farai Mabeza, Senior Staff Writer 
Khayah Cement, formerly LaFarge Cement, says it is optimistic of a much-improved performance as the year progresses, on the back of management actions and investments carried out in the first quarter of 2023.
This comes as the cement maker has been undergoing a business transition following the exit of Associated International Cement Limited in November 2022.
“It was thus, necessary to embark on a short-term rapid high impact plan focused on specific deliverables to stabilise the business. This was mainly through capacitation of industrial operations and strengthening of logistics,” Khayah said in a trading update for the period January 1, 2023 to March 31, 2023.
“Funded through capital injection from the new shareholder, the programme involved expenditure to raise inventory, improve plant availability and modernise the laboratory equipment for quality assurance.
“Increased milling capacity has created opportunities for the development of high strength cement varieties,” Khayah added.
“Power supply remained relatively constant throughout the quarter. However, power voltage fluctuations continue to affect the smooth operation of the manufacturing plant and equipment.”
Business performance was reported as generally on an upward trend in the period under review as total volume across the board grew by 18 percent.
Net sales improved by 131 percent (inflation adjusted) against prior year ($4,8 billion:2022 vs $11,1 billion:2023).
The sales evolution reflected enhanced production volumes across the business as well as an increase in foreign currency sales.
The company’s industrial performance increased with the installation of the Vertical Cement Mill in Q3 of 2022. Cement sales volumes therefore, closed 96 percent above same period prior year, while the dry mortar product sales volumes grew by 121 percent above the same period last year.
Growth in dry mortar products was partly driven by strong demand for the agricultural lime range, Supagrow.
The aggregates volume doubled against the same period last year, while clinker production declined by 28 percent. Clinker volumes were impacted by the aforementioned inconsistent plant performance.
Consequently, it was not possible to continue clinker sales in Q1 2023 and the company resorted to importation of clinker to support production needs.
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