DT Correspondent
HARARE: – Johannesburg Stock Exchange-listed, Pretoria Portland Cement (PPC) says its Zimbabwean unit recorded a 44 percent increase in sales volumes due to improved clinker availability for production and increased local demand.
In a short-form announcement on Monday, PPC chief executive officer Roland van Wijnen says the company is seeing a strong recovery in all its key metrics.“Zimbabwe continued to win back market share it had lost during the planned extended kiln shutdown in the first half of the prior year.
“Cement sales volumes increased 44,0 percent mainly due to improved clinker availability for production, increased local demand, a reduction in imports and a soft base in the prior comparative numbers due to the extended shutdown.
“PPC Zimbabwe changed its functional currency to United States dollar and reporting has therefore been simplified as hyperinflation accounting is no longer applicable.
The Rand depreciated by 14,9 percent to the US dollar when compared to the prior period, bolstering the Zimbabwean overall performance when reported in South African Rands,” said van Wijnen.
The company says its key focus will remain on its southern Africa businesses, including South Africa, Botswana and Zimbabwe.
“This includes continuing to improve its profitability and enhance returns through further operational efficiencies and cost containment measures.
“Without a significant increase in infrastructure spending and South African gross domestic product, South Africa’s cement demand is expected to remain subdued and sustainability is therefore dependent on both capital discipline and margin management.
“Notwithstanding, PPC South Africa remains well positioned to benefit from an increase in cement demand, with additional capacity readily available to capture an upswing in demand without significant additional capital expenditure being required,” van Wijnen added.
Meanwhile, PPC’s revenue for the current period increased by 104 percent in Rand terms to R1 743 million (September 2022: R855 million) which, together with the focus on costs resulted in its earnings before interest, taxation, depreciation and amortisation (EBITDA) margins increasing to 24,6 percent (September 2022: 17,3 percent).
PPC Zimbabwe’s EBITDA increased by 190 percent to R429 million (September 2022: R148 million).
