gtag('config', 'UA-12595121-1'); PPC Africa Projects 20% Earnings Increase Driven by Strong Zimbabwe Performance – The Zimbabwe Mail

PPC Africa Projects 20% Earnings Increase Driven by Strong Zimbabwe Performance

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Johannesburg,— Cement producer PPC Africa anticipates a 20% rise in earnings for the fiscal year ending March, fueled by robust performance from its Zimbabwe operations.

Last year, PPC Zimbabwe experienced a significant setback due to an extended shutdown of its kiln, negatively impacting annual profits. However, a strong recovery in the past year is expected to drive headline earnings per share (HEPS) up by 20%, marking a turnaround from the group loss reported last year, PPC announced in a notice on the Johannesburg Stock Exchange on Wednesday.

“This difference is primarily due to the current period EPS and HEPS numbers being impacted by a strong performance by PPC Zimbabwe in the current period compared to the prior period in which it had an extended kiln shutdown,” PPC stated.

PPC has now shifted to accounting for its Zimbabwe operations in US dollars, eliminating hyperinflation accounting and avoiding the net monetary loss of R131 million seen in last year’s results.

Zimbabwe stands out as one of PPC’s top-performing markets. Amid its broader restructuring efforts, PPC has decided to retain its Zimbabwean unit. Last year, the company sold its 51% stake in Rwandan business CIMERWA for $42.5 million, focusing on its core South African operations after entering the Rwandan market in 2013.

In the 10 months leading up to January, PPC Zimbabwe achieved a 41% increase in volumes, attributed to a surge in residential construction, government-funded infrastructure projects, and import restrictions.

PPC Zimbabwe paid dividends of US$4 million in July 2023 and US$7 million in November 2023. The next dividend declaration is expected in July 2024. – NewZwire