- EBIDTA expected to come in between R806 million and R834 million
- EPS to be between 63 cents and 68 cents
- Group also involved in deal to sell-off Botswana asset
Harare – Johannesburg Stock Exchange (JSE) listed cement manufacturer, Pretoria Portland Cement (PPC) says it expects earnings before interest, tax, depreciation and amortisation (EBITDA) for the fiscal year ended 31 March 2021 to grow by between 14% and 18% when compared to the prior year.
This was revealed in a trading statement released ahead of the publication of the company’s results which are reportedly being finalised.
The company says this growth will be realised in spite of the costs incurred whilst undertaking a number of restructuring projects within the fiscal year and the impact of COVID-19 on operations.
“This increase is notwithstanding the Group incurring significant restructuring costs in the current financial year and a full lock-down in April 2020 due to COVID with continuing COVID impacts thereafter,” they highlighted.
In the year to 31 March 2020, EBITDA margins improved by 30.8% to R707 million driven by higher selling prices for cement and lower production costs.
This, therefore, means that in the year ended 31 March 2021, EBIDTA is expected to be between R806 million and R834 million.
Meanwhile, basic earnings per PPC share for the period for continuing operations are expected to be between 63 cents and 68 cents per share, an increase of between 247% and 258% from the 43 cents per share loss for the prior period while headline earnings per share for the period for continuing operations are expected to be between zero cents and 5 cents per share, a decrease of between 91% and 100% compared to the 54 cents per share for the prior period.
“Headline earnings is impacted by the impairments of property, plant and equipment raised at 31 March 2020, some of which are now reversed as at 31 March 2021,” PPC stated.
The group also revealed that they are involved in a binding sale and purchase agreement has been entered into between PPC Botswana Proprietary Limited (a wholly-owned subsidiary of PPC) and a construction and mining company in Botswana, to sell PPC’s 100% shareholding in PPC Aggregate Quarries Botswana Proprietary Limited for a cash purchase consideration of Pula 47.5 million.
The South African cement giant, has eight manufacturing facilities and three milling depots in South Africa, Botswana as well as Zimbabwe, where it operates through its wholly-owned subsidiary, PPC Zimbabwe. The company markets cement under Surebuild brand in South Africa, Botcem brand in Botswana, and Unicem brand in Zimbabwe.
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