PPC announced that adverse weather had negatively affected its cement and concrete sales in South Africa during January and February 2017. Rainfall in excess of 200mm was experienced in many parts of the country during these two months.
The cement manufacturer said it managed to reduce net debt to ZAR4.4bn (US$333.13m) as of December 2016 due to the conclusion of a component of the first empowerment transaction. PPC concluded Strategic Black Partners (SBPs) and Community Service Groups (CSGs) components of its 2008 Broad-Based Black Economic Empowerment (B-BBEE) transaction, resulting in a cash inflow of ZAR1bn in December 2016.
PPC said retail selling prices in most African countries had been declining on the back of increased cement capacity as well as lower economic growth. The prevailing price of cement at retail stores has declined by about 28 per cent in the Democratic Republic of the Congo (DRC) on the back of an influx of imports and the entry of a new producer in the local market. PPC said pricing in the DRC is expected to normalise once the government’s cement import ban is reinstated.
