PPC cement sales fall in 4M24-25

PPC cement sales declined 4.6 per cent in South Africa and Botswana in the first four months of FY24-25. However, revenue increased by 1.6 per cent YoY, supported by a 5.5 per cent hike in prices.

The company said it would continue to focus on the turnaround of its cement businesses to improve profitability and cash generation, focussing on people, organisational culture, processes as well as industrial and supply chain optimisation, reported The Star. “The South African cement business is the key focus area of the turnaround actions,” the directors said. PPC recently started a process to improve profitability and returns on assets, a process that had followed the stabilisation of the balance sheet, and sale of non-strategic assets in recent years.

In Zimbabwe imports increased and contributed to PPC Zimbabwe’s reduced volume. Cement sales volume was down 10.9 per cent in the 4M24-25 and revenues in rand were down 4.5 per cent, buoyed by an average US dollar price increase of four per cent. The company’s EBITDA slipped to 29 per cent from 29.8 per cent in the 4M23-24. Cost containment and turnaround initiative were expected to have a positive impact on the company’s earnings.