PPC reports 21% advance in revenue in 1HFY24

PPC has posted revenue of ZAR6172m (US$335.2m) in the 1HFY24 (ended 30 September 2023), up 20.9 per cent YoY. EBITDA advanced from ZAR728m in the 1HFY23 to ZAR1069m in the same period a year later, while the EBITDA margin advanced three percentage points to 17.3 per cent. Capex over the six-month period came in at ZAR220m. Operating profit improved from ZAR273m to ZAR675m.

In the 1HFY24, the South Africa and Botswana business contributed 57 per cent of group revenue (1HFY23: 68 per cent), the Zimbabwe business accounted for 28 per cent (1HFY23: 17 per cent) and Rwanda (Cimerwa) was responsible for 14 per cent (1HFY23: 15 per cent). 

PPC’s South Africa and Botswana cement business reported revenue of ZAR2972m in the 1HFY24, marking a YoY increase of 3.7 per cent. The market remains challenging with volumes down 4.7 per cent YoY. Average selling prices, meanwhile, improved 8.8 per cent, with enhanced operational performance and cost control seen over the six-month period. The company noted an improved inland performance due to price increases and better cost management, while the weak economic environment combined with excessive rain negatively impacted the coastal performance. Botswana was negatively impacted by imports from Namibia. 

In US dollars, the Zimbabwe business saw its revenue advance by 68.6 per cent from US$55.3m in the 1HFY23 to US$93.3m in the same period a year later. EBITDA expanded 117.4 per cent over the same period, while the EBITDA margin improved 5.5 percentage points to 24.6 per cent. Volumes over the six-month period were up 44 per cent YoY as market share recovered. According to PPC, there was continued stable and high cement demand for residential construction and government-funded infrastructure projects, while clinker demand exceeded production capacity. Power supplies also improved significantly. 

Rwanda-based Cimerwa reported revenue of ZAR883m in the 1HFY24, up 14.5 per cent on the same period a year earlier. The company has just agreed to dispose of its Rwanda business for US$42.5m, enabling PPC to focus on its core Southern African markets. The purchaser is a privately-owned company that is part of the Devki Group, one of the largest manufacturers of clinker and cement in East Africa with operations in Kenya and Uganda. The Rwanda business saw a 4.4 per cent expansion in EBITDA YoY, reaching ZAR260m in the 1HFY24. However, increased competition put pressure on margins over the period. Power supply in the country has improved significantly. The country remains deficient in clinker but again, supply improved.