South African cement manufacturer PPC Ltd says that its ‘Awaken the Giant’ turnaround strategy has resulted in a step change in its profitability and cash generation, achieving its best results since FY17-18.
During FY24-25, PPC increased its EBITDA 28 per cent to ZAR1593m (US$89.6m), with EBITDA margins expanding from 3.8 to 16.1 percentage points, while free cash flow increased 306 per cent to ZAR1049m. Earnings per share increased to ZAR0.32 (FY23-24: ZAR0.06) and headline earnings per share increased to ZAR0.40 (FY23-24: ZAR0.19).
“This early success is largely as a consequence of a fundamental change in our strategic direction, the organisational culture, and an absolute focus on our core competencies,” says Matias Cardarelli, PPC’s CEO.
“These results are the highest since 2018, considering the current group portfolio. Additionally, we have resumed ordinary dividend payments from the South Africa business segment, which has not been declared since 2016, and there was a record dividend from Zimbabwe.”
Adapting to change
Together with the execution of the turnaround plan, PPC continues to evaluate projects and strategic options that will support medium- to long-term value creation. PPC signed a engineering, procurement and construction (EPC) contract in March 2025 with Sinoma Overseas Development Company for the construction of a new 1.5Mta state-of-the-art integrated cement plant in the Western Cape. The new ZAR3bn facility will replace and increase existing capacity.
The cement industry landscape is changing in terms of market players, global and local competitors and expansion strategies. Mr Cardarelli added, “International cement groups are entering the market with a strong investment in new technology, bringing cost efficiency. This will significantly change the market dynamics and the existing producers’ position. We are well underway in creating a more efficient business, better equipped to compete and meet our ambitious objectives”.
While PPC says it is cautiously optimistic about the planned infrastructure spend recovery, long-term sustainability does not rely on an improved overall economic environment. The focus continues to be on unlocking internal value, as demonstrated in the FY24-25 results, without requiring any significant market shift.
