PPC | Operational Update and Trading Statement

By Published On: July 28th, 2020Categories: Corporate announcement

In terms of the Listing Requirements of the JSE Limited (“JSE Listings Requirements”), companies are required to publish a Trading Statement as soon as they become reasonably certain that the financial results for the period to be reported will differ by more than 20% from those of the previous corresponding period.

Basic earnings and headline earnings per share is expected to decrease by more than 20% compared with the 16 cents per share and the 20 cents per share achieved respectively for the prior comparable period ended 31 March 2019. These movements are after taking into account impairments of property, plant and equipment, expected credit losses and other fair value adjustments. The general economic environment and the Covid-19 pandemic will have a material impact on these adjustments, which are being finalised. PPC will provide further guidance once reasonable certainty has been established on the range, in compliance with the JSE Listings Requirements. As previously advised, PPC expects to publish its group’s financial results for the year ended March 2020 on or about 31 August 2020.

PPC’s cement operations ramped up in May 2020 post the lifting of the COVID-19 restrictions imposed at the end of March 2020 across most of the jurisdictions in which the Group operates. As reported on 30 April 2020, sales volumes were significantly impacted in April 2020. In May 2020, South Africa cement sales volumes were still around 30 -35% below May 2019 as the operations gradually resumed. In PPC International the May cement sales volumes were less than 5% below the same period in 2019, mainly driven by strong sales volumes in Rwanda.

The demand recovery has been strong in June 2020, as the cement sales volumes in South Africa grew by double digits compared to June 2019. This recovery is mostly driven by the absence of imports that has given an opportunity for local producers like PPC