PPC reports 8% rise in 1H revenues

PPC reports 8% rise in 1H revenues
23 November 2018

PPC posted an eight per cent increase in 1HFY18-19 revenues to ZAR5.597bn (US$403.9m) on the back of strong growth in the rest of Africa as the company’s performance in its domestic market of South Africa remains weak.

Gross profit fell by 17 per cent to ZAR1.103bn in the six months ending 30 September 2018 from ZAR1.329bn in 1HFY17 while operating profit fell 34 per cent to ZAR507m. However, foreign exchange gains of ZAR38 and investment income of ZAR62m were unable to offset finance costs of ZAR336m, which were up 18 per cent YoY. As a result, pretax profit fell by 49 per cent to ZAR251m in 1HFY18-19 when compared with ZAR497m in the previous-year period. The company’s net profit fell 14 per cent YoY to ZAR260m in 1HFY18-19 in the first six months of 2017.

In South Africa, volumes were down by three per cent as drought and imports in the Western Cape affected local sales. The inland market experienced flat volume growth but domestic volumes improved from 1QFY18-19 to 2QFY18-19. In addition higher fuel prices affected mining and logistics costs and combined with the phasing of kiln shutdowns and unplanned downtime, cost of sales in ZAR/t rose by four per cent. Overheads were also up one per cent as the head office restructured.

In the rest of Africa, the company enjoyed a 31 per cent rise in revenues in Zimbabwe to ZAR1.077bn but its sales in Rwanda fell by seven per cent to ZAR402m as the company upgraded its plant, resulting in volume loss. Revenues from its operations in the Democratic Republic of Congo also contributed positively, by ZAR240m to the group total.

Published under Cement News