- PPC Limited’s “Awaken the Giant” plan, launched in 2024, aims to restore competitiveness, profitability, and cashflow after years of financial strain and high debt
- Group EBITDA rose 20% YoY, with EBITDA margin expanding over two percentage points to 15.9%
- Zimbabwean cement sales jumped 22% YoY, supported by strong consumer demand and a 30% import tariff on cement, giving local producers a competitive edge
Harare - The leading Southern Africa leading of cement and related products PPC Limited ambitious Awaken the Giant turnaround strategy is beginning to reshape the fortunes of Southern Africa’s largest cement producer according to the operating trading update for the four months ended 31 July 2025.
The strategy is focused on increasing long-term leadership and competitiveness through increased profitability and cashflow.
During the period group EBITDA rose by more than 20% compared to the prior year, while the EBITDA margin expanded by over two percentage points to 15.9%, signalling that the strategy is delivering measurable gains in efficiency and cash generation.
‘’ The PPC group continues to successfully deliver on its “Awaken the Giant” strategic turnaround.’’ reads the operating update.
The Awaken the Giant is PPC’s strategic turnaround plan, launched in 2024, after years of financial strain, high debt, and weak competitiveness, especially in South Africa.
In South Africa and Botswana, sales volumes grew by 2% on the back of stronger retail demand and clinker sales to PPC Zimbabwe.
Operational efficiencies and well-timed plant shutdowns allowed EBITDA margins to rise sharply to 17.7% from 10.3% in the comparable period.
This performance is particularly noteworthy given the weak South African macroeconomic environment, where construction activity has been dampened by high interest rates, limited infrastructure spending, and competitive pricing pressures.
Zimbabwe, meanwhile, delivered the standout results , with cement sales volumes jumping 22% compared to last year, supported by robust consumer demand and the introduction of a 30% tariff on imported cement in May 2025.
The protective policy gave local producers, particularly PPC, a stronger foothold in the market as consumers turned to domestic suppliers.
During the period, PPC Zimbabwe undertook a planned extended shutdown at its Colleen Bawn plant as part of a three-year performance improvement programme designed to boost self-sufficiency in clinker production.
Although the shutdown temporarily reduced EBITDA margins to 15.3% from 29%, profitability quickly rebounded once operations resumed, demonstrating the resilience of the Zimbabwean unit.
Despite the temporary pressure on margins in Zimbabwe, cash generation remained strong across the group.
This enabled the declaration of US$20 million in dividends for the first half of FY26, a sharp increase from the US$4 million declared in the same period last year.
Of this, US$12 million has already been received, with the remainder expected in October. In South Africa, shareholders were rewarded with an ordinary dividend of R274 million for FY25, consistent with the company’s stated dividend policy.
Looking ahead, the group’s flagship RK3 integrated cement plant project in the Western Cape remains on schedule, with stable gearing projections providing a platform for long-term growth.
Equity Axis News
