PPC Zim sales volumes up 44% on back of local dema...

PPC Zim sales volumes up 44% on back of local demand

Audrey Galawu

Pretoria Portland Cement recorded a pleasing performance in Zimbabwe which saw a recovery in all its metrics.

PPC Zimbabwe won back its market share which the company had lost during the planned extended kiln shutdown in the first half of 2022.

PPC Zim cement sales volumes increased by 44% mainly attributed to improved clinker availability for production, increased local demand and a reduction in imports.

In its 2024 interim results for the half year, PPC revealed that the Company’s revenue for the period in review increased by 104% and in rand terms to R1 743 million which together with the focus on costs resulted in earnings before interest, taxes, depreciation, and amortisation increased by 190% to R429 million compared to R148 million in 2022.

In general, the PPC group had a good year despite the macro environment recording a 20.9% increase in revenue to R6 172 million which was driven by a 4% increase in group cement volumes l, price increases and the rand depreciation against the US$.

The Group EBITDA increased by 46.8% to R1 069 million as margins expanded in all the markets, except Rwanda.

There was a significant recovery of market share in Zimbabwe as well as return to profitability by the overall materials business.

However, fair value and foreign exchange gains decreased from R82 million to R4 million due to the adaption of the US$ as the functional currency for PPC Zimbabwe.

Profit before tax increased to R569 million and profit after tax was R431 million.

Portland Holdings Limited, trading as PPC Zimbabwe, manufacturers and markets quality cement and cement by-products for the construction industry in Zimbabwe, producing up to 1.8 million tons of cement per annum.

PPC supplies customers in Zimbabwe, Mozambique, Botswana and Zambia.