South African cement producer, PPC Limited, recorded solid performance for the financial year 2024 (FY24) buoyed by strong performance by its Zimbabwean operations, reported <a href="https://www.herald.co.zw/govt-projects-bouy-ppcs-performance/">The Herald</a>.
The group revealed that revenue rose 20,6 per cent to R10 058 million for the review period, driven primarily by a strong performance in PPC’s Zimbabwean operation.
The South African and Botswana operations revenues increased only marginally by 5.2 per cent, driven by price increases and increased sales of clinker to Zimbabwe.
In contrast, revenue from the materials businesses declined by 6 per cent compared to the previous year.
According to the performance review update, PPC’s operation in Zimbabwe registered a strong recovery in 2024 albeit off a low base following the extended maintenance shutdown of the kiln in the first half of 2023. Said PPC:
<blockquote>
Zimbabwe won back the market share it had lost with demand across both residential construction and Government-funded infrastructure projects.
</blockquote>
Cement sales volumes in Zimbabwe rose by 36,6 per cent when compared to the prior year.
During the year under review, PPC Zimbabwe’s revenue almost doubled, increasing by 90,9 per cent in rand terms to R3 346 million on strong cement volumes and price increases.
PPC said the full-year impact of the 5 per cent selling price increase that was effected in August 2022 (prior year) and the 4 per cent sales price increase effected in January 2024 also contributed to the revenue increase.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margins reduced marginally to 20,2 per cent compared to 20,8 per cent in FY23 but significantly off the half-year margins of 24,6 per cent due to high electricity costs resulting from a gradual tariff increase.
Clinker purchases also continued in H2 FY24 and the full cost of purchased clinker was 169 percent higher than the prior year.
The Zimbabwe unit paid a US$11 million dividend during the year compared to US$10 million in the prior year.
Meanwhile, the unit remains suspended from the Zimbabwe Stock Exchange (ZSE) following its suspension in June 2020 together with Old Mutual and Seed Co International on allegations they were fueling inflation.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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Zimbabwean Government Projects Buoy PPC Performance

Three young boys, aged 11, 12, and 14, suffered severe burns on Friday after falling into a dumpsite containing hot waste material disposed of by cement maker, Pretoria Portland Cement (PPC) at its Colleen Bawn plant.
The boys were taken to Mater Dei hospital in Bulawayo and are currently receiving treatment for their injuries.
PPC Head of Operations and Projects, Mavellas Sibanda told CITE that the company had sent its industrial safety and occupational health personnel to assist the injured boys and their families. Said Sibanda:
<blockquote>
PPC Zimbabwe Limited (‘the company’ or ‘PPC Zimbabwe’) regrets to advise of the injury of three non-employees at Colleen Bawn (“the injured persons”).
The incident occurred around 1700hrs on Friday, January 13, 2023, he said at an industrial dumpsite on the Western side of the Colleen Bawn Plant, which the company operates.
Two of the injured persons, accidentally jumped into the dumpsite thereby sustaining burns from some of the materials in the dumpsite which were still hot.
The third injured person sustained burns on the arms whilst trying to assist the other two injured persons.
… The company has assisted with all medical support required.
</blockquote>
Sibanda said according to the report from the doctors attending them, the boys were in stable condition. | <a href="https://cite.org.zw/three-boys-severely-burnt-after-stepping-on-hot-ash/">CITE</a>

Three Boys Severely Burnt Near Cement Plant

PPC shares on the ZSE plummeted a whopping 42+% on this year and is forecasted to fall by further, The Chronicle reports.
According to the publication the current economic crisis is the reason why PPC is having a hard time:
<blockquote>PPC’s shares hit a 53-week low after falling 21.28% in early trade. But the stock recovered to close 12.31% down at R3.42, the largest one-day decline since March 2002. Since the beginning of 2019 the stock has shed more than 42% of its value.
The company’s disappointing performance comes amid a surge in imports, lack of infrastructure investment, mooted price increases in Southern Africa and weak consumer demand. PPC must also make provision for carbon tax, which came into effect on June 1 2019. PPC has said that the effect of carbon tax would be R100m-R120m for cement and lime per year. PPC partially attributed the expected fall in earnings to inflation in Zimbabwe exceeding 150% in the six months to end September.</blockquote>
PPC has said the lack of demand in South Africa and lack of forex is Zimbabwe is frustrating the company.
More: <a href="https://www.chronicle.co.zw/weak-demand-forex-shortage-frustrates-ppc/">The Chronicle</a>

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