PPC’s Strategic Turnaround Delivers Strong Results

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PPC, a leading Southern African cement producer, has reported a 2% decline in revenue to R9.87 billion for the financial year ending March 31, 2025. However, the company’s strategic turnaround plan, “Awaken the Giant,” has yielded significant improvements in key financial metrics. Earnings before tax surged 13.8% to R774 million, driven by operational improvements, best practices, and a focus on core business drivers.

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### Key Highlights

– *Revenue*: 

R9.87 billion, down 1.9% year-on-year, primarily due to a 6.7% reduction in Zimbabwe’s revenue

– *Earnings Before Tax*: 

R774 million, up from R233 million in the prior year

– *Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA)*: 

R1.59 billion, up 28% year-on-year

– *Free Cash Flow*: R1.05 billion, up 306% year-on-year

### Segment Performance

– *South Africa and Botswana*: Revenue increased 0.6% to R6.75 billion, while EBITDA grew 31% to R744 million

– *Zimbabwe*: 

Revenue decreased 6.7% to R3.12 billion, but EBITDA increased 26% to a record R849 million

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### Outlook

PPC’s CEO, Matias Cardarelli, attributed the success to the company’s focus on core competencies and operational improvements. The company expects incremental improvements in the 2026 and 2027 financial years from its turnaround efforts. PPC is also evaluating projects and strategic options to support medium- to long-term value creation, including a new R3 billion integrated cement plant in the Western Cape.

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