PPC Zim Delivers Record US$13 Million in Dividends

Oscar J. Jeke- Zim Now Reporter

PPC Zimbabwe has delivered a record US$13 million in dividends to its shareholders, up from US$11 million in the previous period, despite a 9% drop in cement sales volumes over the 10 months to January.

In its latest trading update, PPC Africa attributed the strong dividend payout to healthy cash generation in Zimbabwe, which enabled the company to remain debt-free and maintain US$13 million in cash reserves as of the end of January.

“Following the strong cash generation in the current period, resulting in record dividends from PPC Zimbabwe and healthy cash flow generation in South Africa, the board will consider a dividend in line with its distribution policy. This policy provides for the pass-through of dividends received from PPC Zimbabwe to shareholders,” the company stated.

Cement sales volumes declined by 9%, mirroring the trend recorded at the half-year mark, though sales began to recover in January 2025. A 6% increase in EBITDA and improved margins—rising from 21.6% to 26%—were driven by cost-control measures despite lower revenues.

PPC Zimbabwe continues to battle the influx of imported cement, which CEO Albert Sigei recently estimated to be costing the industry up to US$50 million annually. The company operates two cement plants in Bulawayo and Harare, with a combined annual production capacity of 1.4 million tonnes, commanding over half of Zimbabwe’s cement market.

PPC Zimbabwe has benefited from major government infrastructure projects, including the Hwange Power Station expansion, the Beitbridge Border Post, the Harare-Beitbridge Highway, Muchekeranwa Dam, and RG Mugabe International Airport renovations.

In response to power supply challenges, the company is installing two solar plants with a combined capacity of 30MW to stabilize energy supply for its operations.