PPC Fuels Profits with Cost Containment Measures – EBITDA down 9% to R1.358 billion

Published On: June 28, 2023Company: Pretoria Portland Cement Co. Ltd (PPC.zw)
What cost containment measures have been implemented to increase profits?
The group has implemented various cost containment measures to increase profits, including in South Africa and Botswana Cement, reducing fixed administration and overhead costs, and restructuring the aggregates business to decrease absolute fixed costs and convert certain fixed costs to variable costs.
  • Pretoria Portland Cement (PPC) Co Ltd. reported results for the year ended 31 March 2023.
  • Total revenue increased by 1% to R6 586 million (March 2022: R6 501 million). The cost of sales and administration and other operating expenditures were flat at R9 425 million for both periods.
  • Group EBITDA, including dividends from International Businesses, decreased by 9% to R1 358 million (March 2022: R1 493 million).
  • SA obligor group EBITDA decreased by 26% to R570 million (March 2022: R768 million) due to increases in costs which exceeded price increases.
  • In South Africa and Botswana Cement, total costs increased by 4%, leading to a decline in EBITDA to R674 million (March 2022: R825 million).
  • In Zimbabwe, total revenue decreased by 19% to R1 753 million (March 2022: R2 172 million) with cost containment measures, resulting in an EBITDA of R365 million (March 2022: R393 million).
  • In Rwanda, revenue and EBITDA both increased, with revenue up 29% to R1 563 million (March 2022: R1 209 million) and EBITDA up 31% to R447 million (March 2022: R341 million).
  • The board is in the process of appointing a suitable successor for Roland, whose employment contract is scheduled to come to an end on 31 December 2023.

Useful links

About Pretoria Portland Cement Co. Ltd (PPC.zw)

Portland Holdings Limited, trading as PPC Zimbabwe, manufactures and markets quality cement and cement by-products for the construction industry in Zimbabwe, producing up to 1.8 million tons of cement per annum. Established in 1913, PPC Zimbabwe supplies customers in Zimbabwe, Botswana, Zambia and Mozambique. The company has three manufacturing plants that are regarded as the most modern operations in southern Africa; located in Colleen Bawn, Bulawayo and Harare. The company has interests in limestone mining, and manufacturing and distributing metallurgical-grade limestone, burnt lime and burnt dolomite; as well as the supply of ready-mix concrete, dry mortars and fly ash. Well-known PPC products available in Zimbabwe include SureBuild, Sureroad, Unicem and PMC. PPC Zimbabwe is listed on the Zimbabwe Stock Exchange

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

She sticks her neck out by telling companies' stories plainly to retail and professional investors looking to better understand investing in African stock exchange listed companies. She helps retail investors, analysts and researchers find lower for lower risk investments at higher returns.

So "See the bigger picture" by reading her top-down views. Go long on African equities. Invest for higher returns. Stay on top and tower above the rest.

Related articles