In its trading figures for the six months to 31 March 2016, PPC saw its operating profits fall by three per cent to ZAR733m (US$48m). Revenues were flat at ZAR4501m (US$294m), down one per cent on the same period in 2015. Likewise, volume sales were down one per cent overall, although in South Africa volumes rose by one per cent.
Despite higher volumes, revenues in South Africa fell due to lower prices, while in the rest of Africa revenues rose by six per cent to ZAR1367m (US$89m). This figure was buoyed by the opening of PPC’s Rwanda plant, where sales rose by almost 150 per cent. Revenues declined in the more established markets of Zimbabwe (down four per cent) and Botswana.
Darryll Castle, CEO, said: "PPC´s group revenue and cement sales both decreased marginally by one per cent on weaker performances in most operating regions. Our newly-commissioned plant in Rwanda contributed to group revenue after achieving cement sales volumes of 124,000t at the expected margin.
"The Profit Improvement Programme, which generated ZAR212m by September 2015, contributed an additional ZAR178m in sustainable profit improvement in this period; thereby contributing ZAR390m in less than 12 months. This programme, as well as the sale of some non-core assets, contributed to earnings per share rising a pleasing 35 cents to 70 cents.
"Our projects in the DRC, Zimbabwe and Ethiopia are all at advanced stages and will be commissioned in the next 12 months; ensuring we offer shareholders a diversified portfolio of businesses in different geographies. The company is also advancing its plans to raise between ZAR3bn to ZAR4bn to overcome its near-term liquidity constraints."
