PPC Zimbabwe has regained lost market share, recording a strong recovery despite challenges confronting operations during the period.
In the group’s annual report for the period ended March 31 2024, the local operations had a positive performance.
“PPC’s operation in Zimbabwe delivered a strong recovery in the current year albeit off a low base following the extended maintenance shutdown of the kiln in the first half of the prior year.
“Zimbabwe won back the market share it had lost with demand across both residential construction and government-funded infrastructure projects. Cement sales volumes increased 36,6% when compared to the prior year (FY23: down 15,8%) although growth has softened as the effect of the stronger base in the H2 FY23 starts coming through,” the company said.
The group also hailed clinker sales from inland to Zimbabwe for having more than doubled in the current year, supplementing the revenue increase in the SA and Botswana cement business.
The company said Zimbabwe operations remained debt-free and had unrestricted cash holdings on 31 March 2024 of R40 million (FY23: R118 million).
Approximately 80% of PPC Zimbabwe’s cash is held in hard currencies as Zimbabwe declared and paid a US$4 million dividend in H1 FY24 (H1 FY23: US$5 million) and a US$7 million dividend in H2: FY24 (H2: FY23 US$5 million) bringing the total dividends paid during the year to US$11 million (FY23: US$10 million).
PPC’s share of the dividend (before withholding taxes) amounted to R203 million(FY23). Revenue for the year increased by 90,9% in rand terms to R3 346 million (FY23: R1 753 million) on strong cement volumes and price increases.
The full-year impact of the 5% selling price increase that was effected in August 2022 (the prior year) and the 4% sales price increase affected in January 2024 also contributed to the revenue increase.
Clinker purchases also continued in H2 FY24 and the full cost of purchased clinker was 169% higher than the prior year.
Dividends of US$11 million were paid during the year (FY23: US$10 million). — NewZimbabwe
