Business 18.6.2018 09:20 am

Cement firm PPC says headline earnings up 114 percent, revenue rises on stronger rand

PPC.

PPC.

The company’s CEO says the performance of the company has been resilient against the backdrop of challenging economic and political environments in markets in which it operates.

Cement company PPC limited said on Monday its headline earnings per share for the year to March 31 increased by 114 percent to 15 cents while revenue rose seven percent to R10. 271 billion, helped by a stronger rand.

Group gross profit rose three percent on the strong performance of the company’s Zimbabwe and Rwanda operations.

PPC, however, said the Democratic Republic of Congo market continued to face uncertainty driven by political instability, lower cement demand and subdued selling prices.

“The group has achieved key milestones in delivering on its … strategic priorities,”  CEO Johan Claassen said.

“Our performance has been resilient against the backdrop of challenging economic and political environments in markets in which we operate.”

PPC said the South African landscape remained an economically challenging trading environment, with minimal gross domestic product growth projected for the next 12 months.

The regulatory regime was also increasingly adding to compliance costs in the South African cement sector, and the outlook for the company’s materials division was also muted, as it was linked to infrastructure investment growth.

“The cement business, with its focused R50/tonne savings initiatives, will continue its disciplined approach to growing price and volume, and driving operational efficiencies,” it said.

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