PPC, the
leading cement producer in Africa, lifted revenue by only 1% to R10.4billion in
the year to end March 31, 2019, an indication of the tough trading conditions
in the construction sector.
Cement
volumes sold also only increased by 1% to 5.9million tons.
Nevertheless,
the business benefited from the scheduled restructuring of the PPC head office
and the R70/ton cost savings initiatives in southern Africa. Group overheads
decreased significantly by 19%, resulting in a cost reduction of R260million.
As a
result, group earnings before interest, tax, depreciation and amortisation
(Ebitda) increased by 4% to R1.95bn.
Headline
earnings per share increased 33% to 20cents.
Outgoing
chief executive Johan Claassen said that the group had produced a “solid” set
of results through being successful in executing its FOH-Four strategic
priorities, with focus areas being financial, operational, human capital and
customers.
PPC,
SOUTH Africa’s largest cement producer, lifted its revenue by only one percent
to R10.4 billion in the year to end March 31, 2019. Waldo Swiegers Bloomberg
In the
Rest of Africa, the Zimbabwe results were impacted by the change in functional
currency, which reduced revenue and Ebitda contributions.
The
Democratic Republic of Congo business achieved positive Ebitda of R108m in a
challenging market.
In
Rwanda, the business achieved increased output, benefiting from the
debottlenecking in the first half of the financial year.
The
southern African cement and materials businesses experienced above inflation
input cost pressures, mainly as a result of higher fuel costs, as well as
once-off unplanned maintenance costs.
Taxation
declined by 97percent to R6m in the current year, from R205m the previous year.
Gross
debt increased from R4.68bn in March 2018 to R5bn at the end of March 2019.
Rand
weakness increased gross debt by R630m.
In the
materials business revenue increased by 7percent to R2.15bn from R2bn, and the
business generated Ebitda of R140m as opposed to R192m in the prior period.
The board
decided not to declare a dividend.
On Wednesday the group announced Roland van Wijnen, formerly of the international LafargeHolcim cement group, as the new chief executive, as Johan Claassen is taking early retirement.https://www.iol.co.za/business-report/companies/ppc-ups-revenue-in-tough-trading-27873552
