HARARE – Zimbabwe Stock Exchange listed cement producer PPC Ltd has reported contrasting performances across its regional operations, with Zimbabwe registering significant volume growth while South Africa and Botswana delivered steady but more modest improvements, owing to the success of its “Awaken the Giant” strategy.
According to the company’s operating update for the four months ended 31 July 2025, group revenue rose 4% year-on-year, supported by gains in both regional markets.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) grew by more than 20%, with margins improving to 15.9% from 13.7% in the prior comparable period.
Sales volumes in South Africa and Botswana increased by 2% over the comparable period, largely driven by stronger retail demand and clinker exports to Zimbabwe.
EBITDA margins improved significantly to 17.7%, up from 10.3% in 2024, reflecting the impact of PPC’s turnaround strategy.
The company, however, cautioned that margins are expected to normalise around 17% as plant shutdown schedules return to regular patterns in the second half of the year.
Zimbabwe outpaced the region with a 22% jump in cement sales volumes, boosted by strong consumer demand and the introduction of a 30% tariff on imported cement in May 2025.
The Colleen Bawn plant underwent an extended shutdown as part of a three-year performance improvement plan, which temporarily weighed on margins.
As a result, PPC Zimbabwe’s EBITDA margin fell to 15.3% from 29% in the same period last year. However, post-shutdown figures show margins recovering to prior levels.
Cash generation in Zimbabwe remained robust, enabling the declaration of US$20 million in dividends for the half-year, a sharp increase from US$4 million a year earlier.
The company additionally, announced the pending US$30 million sale of its Arlington property, which is expected to further strengthen its financial position.
PPC said its “Awaken the Giant” turnaround strategy is yielding results, positioning the group for sustained competitiveness despite a weak macroeconomic environment in South Africa.
The company highlighted that efficiencies in Zimbabwe and stable contributions from South Africa and Botswana would continue to support shareholder returns.
“The positive impact of improved operational efficiency and the right commercial focus, in line with the ‘Awaken the Giant’ strategy, will enable PPC to continue to compete effectively in the market while delivering returns to shareholders.
“Efforts will remain concentrated on leveraging PPC’s quality assets and footprint, as well as continuing to increase margins,” the company stated.
The group will release its full half-year financial statements on 24 November 2025.
