Cement producer PPC Limited’s shares firmed by almost 4% on the Johannesburg Stock Exchange on Monday, as the market cheered a strong operating update for the four months ended 31 July 2025.
The group says its turnaround strategy is delivering sustained gains, with group earnings before interest, tax, depreciation and amortisation (Ebitda) rising more than 20% compared with the same period last year.
The Ebitda margin improved by more than two percentage points to 15.9%, while group revenue increased 4%.
It says this reflects progress of PPC’s ‘Awaken the Giant’ turnaround strategy, now in its second year. The plan centres on driving operational efficiencies, cutting costs, expanding margins and applying disciplined capital management to restore financial strength and competitiveness across its markets.
CEO Matias Cardarelli said: “As we enter the second year of our strategic turnaround plan, I am very pleased that we are making consistent progress. It is resulting in further growth and margin expansion. This is on top of what was achieved in the 2025 financial year.
Sales volumes in the South Africa and Botswana operations rose 2%, supported by stronger retail demand and clinker sales to PPC Zimbabwe. Ebitda margins in this segment improved sharply to 17.7%, up from 10.3% in the comparable period, aided by the timing of certain plant shutdowns.
Cement sales volumes in Zimbabwe climbed 22%, boosted by robust consumer demand and a 30% tariff on imported cement introduced in May 2025.
PPC Zimbabwe temporarily reduced production during a planned extended shutdown at its Colleen Bawn plant, which formed part of a three-year performance improvement programme.
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The shutdown, coupled with reliance on imported clinker, cut Ebitda margins to 15.3% from 29% in the comparable period, but margins recovered once the plant resumed production.
Cash generation remained strong, enabling PPC Zimbabwe to declare $20 million in dividends for the first half of the financial year, compared with $4 million a year earlier.
Full results for the six months ending 30 September 2025 are expected to be released on or about November 24, 2025. —Moneyweb
