eBusiness Weekly
Business Writer
PPC Zimbabwe posted record sales for the six-months to September 30, 2017 as volumes rose by over 25 percent as the new Harare Mill kicked into operation during the period under review.
PPC Zim is a subsidiary of South African-headquartered cement giant PPC Limited.
Growth in volumes and sales were on the back of a rise in demand for asset investment by investors as cash shortages prevailed during the period.
“PPC Zimbabwe grew volumes by more than 25 percent compared with last year, achieving new sales records in the process. The commissioning of the Harare mill supported volume growth in the north of the country. Demand is being driven by housing and asset investments.
“Average selling prices grew by four percent in US dollar terms compared with the previous period. The country continues to experience liquidity constraints, which we are monitoring closely. The sales team continues to search for export opportunities,” said the group in its unaudited condensed consolidated financial statements for the six months period.
The positive performance of the Zimbabwean operation — along with that of the Rwandan division — contributed significantly to the group’s ‘Rest of Africa’ segment’s revenue.
Rwanda’s sales volumes grew by more than 30 percent for the period as realised cement prices increased marginally, noted PPC.
“Rest of Africa segment’s revenue rose 9 percent supported by robust volume growth in Rwanda and Zimbabwe,” said PPC Limited.
Selling prices remained fairly stable during the period. Earnings before interest, tax, depreciation and amortization (EBITDA) grew by 25 percent to R422 million, with EBITDA margins expanding from 30 percent to 34 percent.
“The rise in EBITDA is attributable to our route to market strategies gaining momentum and cost containment.”
Commenting on the results, PPC chief executive Johan Claassen said:
“The half-year results are a testimony of PPC´s operational focus and market leadership positioning. The period under review has been transformational for the group with our new investments in Zimbabwe and Rwanda contributing positively to our growth.”
Meanwhile, group revenue rose by 1 percent to R5 188 million (compared to the prior comparable period figure of R5 156 million).
PPC Limited’s total cement volumes increased by 2 percent to approximately 3 million tonnes.
