PPC Co Ltd (Zimbabwe) – Group revenue up 11% to R9 882 million in FY22

By Published On: July 5th, 2022Categories: Corporate announcement, Earnings
Pretoria Portland Cement Co. Ltd 2022 Abridged Results

Pretoria Portland Cement Co. Ltd (PPC.zw) 2022 Abridged Report

CEO’s Commentary

Roland van Wijnen, CEO, said:

Our resilient cash generation demonstrates our focus on one of the most important measures of financial  performance. These results were further supported by our efforts to drive efficiencies which helped mitigate inflationary pressures. Ultimately, Team PPC was able to reduce net debt by R1, 2 billion and finalise the work to achieve a solid financial position.

Furthermore, we have set our decarbonisation strategy in motion and are committed to tackling climate change head on. I extend my gratitude to all our customers for their continued support and to my colleagues who have worked diligently to ensure PPC continues to sustain its purpose of empowering people to experience a better quality of life.


The group, in accordance with IFRS 5 – Non-current assets held for sale, continues to account for PPC Barnet as a discontinued operation. Accordingly, the assets, liabilities and profit or loss are reported separately in the financial statements for the year ended 31 March 2022. For the year ended 31 March 2021, PPC Barnet, PPC Lime and Botswana Aggregates were all accounted for as discontinued operations. During the year under review, PPC Lime and Botswana Aggregates were sold with effect from 30 September 2021 and 16 September 2021 respectively. Regarding PPC Barnet, binding long-form agreements for the restructure of the senior lender debt were signed on 19 April 2022 and all the conditions precedent were met on 29 April 2022, from which date PPC will cease to consolidate PPC Barnet.


Group revenue for the 12 months ended 31 March 2022 increased by 11% to R9 882 million (March 2021: R8 938 million). Excluding Zimbabwe, group revenue increased by 5%. Revenue in PPC Zimbabwe increased by 34% off the back of a 28% increase in volumes.

Total costs, being cost of sales together with administration and other operating expenditure, increased by 19% to R9 360 million (March 2021: R7 887 million). The increase in total costs is significantly affected by an increase in PPC Zimbabwe’s costs of 85%. Other than continuing hyperinflation and the 42% depreciation of the Zimbabwean dollar (ZWL dollar) against the South African rand (ZAR), the most significant line item was an increase in PPC Zimbabwe’s depreciation expense to R386 million (March 2021: R24 million) due to the application of the effective rate method of hyperinflating depreciation in the current year. Costs, excluding depreciation and PPC Zimbabwe, increased by 7% with efficiency gains offsetting input cost inflation. Profit before tax from continuing operations decreased from R1 765 million to R186 million, due to the items set out below:

  • PPC Zimbabwe incurred a loss before tax of R67 million (March 2021: R263 million profit)
  • Excluding PPC Zimbabwe’s portion, fair value adjustments and foreign exchange movements resulted in a gain of R18 million (March 2021: R148 million loss)
  • Impairments of R38 million (March 2021: R1 317 million reversal)
  • An IFRS – Share-based payment charge of R36 million (March 2021: R21 million).

Excluding the above in both the current and the prior year, operating profit from continuing operations would have decreased by R43 million or 11%.Finance costs decreased by 15% to R240 million (March 2021: R283 million) due to lower average borrowings. Finance costs in South Africa decreased by 4% to R155 million (March 2021: R161 million), while finance costs in the international operations decreased by 30% to R85 million (March 2021: R122 million).

The group taxation charge for the year amounted to R207 million relative to a charge of R742 million in March 2021.

Discontinued operations, which include PPC Barnet for the full year and PPC Lime and Botswana

Aggregates until 30 September and 16 September 2021 respectively, generated a profit of R158 million (March 2021: R1 141 million loss) for the year. The most significant change year-on-year was an impairment of R761 million in the prior year compared to a reversal of R215 million in the current year for PPC Barnet at the consolidated level to reflect the economic position post the restructuring agreements entered into on 31 March 2021.

Earnings per share (EPS) for the period from continuing operations decreased to a loss of 5 cents (March 2021: 65 cents) while headline earnings per share from continuing operations (HEPS) reduced to a loss of 3 cents (March 2021: 3 cents profit).

Group earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 7% to R1 493 million (March 2021: R1 598 million) with an EBITDA margin of 15,1% (March 2021: 17,9%). Excluding PPC Zimbabwe, the group’s EBITDA from continuing operations decreased by 2%.

Cash generated from continuing operations before working capital changes decreased by 3% to R1 516 million (March 2021: R1 559 million). Stringent working capital management resulted in cash generated from continuing operations increasing by 6% to R1 454 million (March 2021: R1 375 million). Cash generation and preservation remains a key performance measure for PPC.

Net cash outflow from investing activities reduced to R72 million (March 2021: R392 million) mainly due to the receipt of R503 million in cash from the disposal of PPC Lime and Botswana Aggregates offset to some extent by an increase in investments in property, plant and equipment of R186 million. Net cash inflow before financing activities improved to R973 million (March 2021: R972 million).

Gross debt amounted to R1 581 million on 31 March 2022 (March 2021: R2 628 million).

The R1 047 million decline in gross debt comprises a reduction of borrowings in South Africa of R692 million, CIMERWA Limitada (CIMERWA) of R216 million and PPC Zimbabwe of R139 million.


Cement sales volumes in the region for the 12 months ended 31 March 2022 were in line with the prior year as demand normalised from a high base. Relative to the 12 months ended 31 March 2020 (pre-COVID-19), cement sales volumes increased by 5%to 9%. South Africa and Botswana cement sales continue to benefit from demand growth in the informal and rural markets, albeit at a “normalised” rate following the post-COVID-19 lockdown spike in demand. Cement sales volumes in the inland region also benefited from pockets of demand from industrial construction and mining activity. As a result, inland region cement sales volumes exceeded pre-COVID-19 levels.

Cement sales volumes in the coastal region experienced low single-digit year-on-year demand growth due to a partial recovery in industrial construction