- Revenue rose to R1 861 million
- Cement volumes declined by 15% to 20%
- Sales volumes between July and September grew by 35% to 40%
Harare – PPC Zimbabwe registered growth in revenue in the year ended 31 March 2020 in spite of a drop in cement volumes and weak demand.
In a results publication for the period under review, the unit’s JSE-listed parent, PPC Limited said the cement maker’s revenue for the period under review increased by 29% to R1 861 million from R1 447 million posted in the prior comparative period.
Cement volumes for the period declined by 15% to 20% in a market that contracted by a similar percentage and cement pricing was adjusted to account for the increase in inflation and the devaluation of the local currency.
EBITDA grew by 53% to R707 million while EBITDA margins improved to 38.0% versus 31.9% in March 2019 driven by higher selling prices and lower cost.
The period under review was characterised by weak demand, unstable power supply and a shortage of foreign currency.
The operation however managed to secure supply contracts for a substantial proportion of the large infrastructure projects in Zimbabwe in hard currency which assisted in alleviating some of the volume declines in other segments of the market.
Despite the effects of the COVID-19 pandemic on business operations, PPC Zimbabwe recorded a 5% volume growth in the first half of FY21 compared to the prior comparative period while in the period between July and September the unit’s sales volumes increased by 35% to 40%.
Group revenue for the period under review declined by 2% to R10 241 million while excluding Zimbabwe, it declined by 7% to R8 380 million mainly due to a decline in revenues from South Africa cement.
Going forward, the Group said it remains cautious on the outlook for the rest of FY21 given the ongoing health crisis and its resultant impact on economic activity.
Furthermore, the Group will remain focused on cash preservation, improving cost competitiveness by lowering operational costs and positioning the business for recovery.
Equity Axis News