PPC Zimbabwe Delivers Record EBITDA Despite Sales...

PPC Zimbabwe Delivers Record EBITDA Despite Sales Dip

Zim Now Writer

PPC Zimbabwe has ended its financial year on a high, reporting a robust set of results for the period ending March 31, 2025. The cement manufacturer maintained its debt-free status while nearly tripling its unrestricted cash holdings to R118 million, from R40 million a year ago—equivalent to approximately US$6.66 million at Tuesday’s exchange rate of US$1 to R17.7256.

This financial strength enabled PPC Zimbabwe to declare and pay out dividends worth US$13 million during the year, up from US$11 million previously. These dividends were instrumental in the performance of its parent company, PPC Ltd, which declared a gross cash dividend of R274 million—R244 million of which came directly from Zimbabwe’s contribution.

“Zimbabwe remains debt-free and had unrestricted cash holdings of R118 million as at March 31, 2025. Approximately 94 percent of PPC Zimbabwe's cash is held in hard currencies,” the company noted.

This achievement comes despite a challenging economic landscape and a 5.5 percent year-on-year drop in cement volumes sold. Nonetheless, PPC Zimbabwe managed to offset volume declines through tighter cost control and improved operational efficiencies.

While group revenue declined by 6.7 percent to R3.122 billion from R3.346 billion the previous year, cost of sales fell even further—by 14.4 percent or R392 million. Administrative and operating expenses also dropped by R46 million.

A key driver of improved margins was the company’s increased reliance on in-country clinker production, which reduced the need for more expensive imports.

The result was a record EBITDA of R849 million, up from R675 million in FY24, with the EBITDA margin rising to 27.2 percent from the previous 20.2 percent—an impressive seven percentage point jump.

Capital expenditure rose to R147 million, compared to R105 million last year, largely due to critical maintenance at the Colleen Bawn plant, including two kiln shutdowns to replace mill liners.

PPC’s board in June 2024 revised its dividend policy to reflect differences in cash generation between its regional units. As a result, Zimbabwe’s contribution dominated the FY25 payout, with 15.7 cents per share (R244 million) sourced from its operations, while South Africa and Botswana accounted for 1.9 cents per share (R30 million).

Group CEO Matias Cardarelli credited the ongoing “Awaken the Giant” turnaround strategy for the group’s improved performance.

“This year has been about resetting our foundations. We've simplified the business structure, brought in strong talent, and fostered a new culture focused on results,” he said.

Cardarelli added that PPC’s improved profitability, margins, and cash generation underscore the success of its internal focus strategy: “We are not banking on macroeconomic improvements. Our future growth lies in unlocking internal value.”

The company reaffirmed its commitment to the Zimbabwean market, viewing the country as a cornerstone of its long-term strategy as regional infrastructure projects begin to take shape.