PPC reported a nine per cent YoY rise in quarterly sales revenue, commenting that sales revenue in South Africa increased two per cent and volumes by at least nine per cent in the company's 3QFY15-16. However, revenue outside of South Africa was even stronger, growing 19 per cent as a result of significant volume growth, newly commissioned plants in Rwanda and gains made through currency translations.
CEO of PPC, Daryll Castle said, “the group's revenue has improved by six per cent supported by strong cement sales volume growth in South Africa and Rwanda. Cement sales volumes grew in excess of 30 per cent in the Coastal regions in South Africa… However, good cost control has led to further impressive declines in group overheads while variable delivered cost of sales per tonne in the South African cement business were well below inflation.”
The South African cement manufacturer said its costs of sales were also on the rise, increasing 14 per cent to ZAR1.8bn (US$126.1m). This growth has been attributed to the higher volumes in the South African cement industry and the increase in the cost of logistics, which rose by three per cent in the period.
A PPC statement read, “On consolidation of foreign currency denominated subsidiaries, the weakness of the rand contributed to rising cost of sales. Gross profit decreased by 11 per cent, from ZAR709m for the quarter ended June 2015 to ZAR630m for the current quarter. This decrease was mainly ascribed to the impact of selling prices pressures felt in our key cement operating markets together with the lower sales volumes in Zimbabwe and Botswana.”
