PPC sales decline by 20%

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REGIONAL cement maker PPC says its general gross sales volumes in Zimbabwe for the interval April 2019 to February 2020 contracted by between 15% to 20% because of a weak financial local weather.

BY MTHANDAZO NYONI

Zimbabwe is at present experiencing a deepening financial disaster characterised by gasoline and electrical energy shortages in addition to liquidity constraints coupled with inflationary pressures.

In its operational replace for the interval April 2019 to February 2020, the cement maker stated regardless of the difficult buying and selling situations in Zimbabwe, together with liquidity constraints and inflationary pressures, the native entity remained self-sufficient.

“Total cement gross sales volumes have declined by 15% to 20% because of a weaker financial local weather, offset by cement pricing which has been aligned to enter value inflation. PPC Zimbabwe achieved earnings earlier than curiosity, taxes, depreciation, and amortisation (EBITDA) margins of 35% to 38%. PPC Zimbabwe has continued to satisfy its debt obligations in nation,” PPC stated.

The cement maker operates a clinker plant in Gwanda (Colleen Bawn) within the southern a part of the nation, in addition to a cement milling plant exterior Bulawayo and one other one in Harare.

Aside from South Africa and Zimbabwe, PPC additionally has models in Botswana, Ethiopia and Rwanda.

The group indicated that buying and selling efficiency in its southern Africa companies had began to indicate indicators of stabilisation by way of cement volumes whereas the enterprise continues to grasp year-on-year cement value will increase.

“The worldwide cement enterprise has delivered a resilient efficiency for the interval with continued year-on-year income progress in DRC [Democratic Republic of Congo] and Rwanda, whereas PPC Zimbabwe has seen an enchancment in EBITDA margins and is absolutely self-funding,” it stated.

The group stated it had continued with stringent value containment supported by a restructured group head workplace.

Group capex has lowered considerably in comparison with the identical interval final 12 months, and is anticipated to be on the decrease finish of the guided vary of R600 million to R800m given on the group´s interim outcomes.

“The discount in capex is anticipated to counter the unfavorable influence of lowered EBITDA. All enterprise models are assembly their debt obligations apart from the DRC operations, which has continued to pay solely its curiosity obligations.”

Within the DRC, PPC has efficiently negotiated an extension to the capital moratorium which expired in January 2020.

The publish PPC gross sales decline by 20% appeared first on NewsDay Zimbabwe.

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