Wrap Text
Condensed Unaudited Consolidated Financial Statements for the six months ended September 2025
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
(PPC or the company or the group)
SHORT-FORM ANNOUNCEMENT
CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 2025
SNAPSHOT OF PERFORMANCE
Consolidated group
- PPC continues to increase its competitiveness and profitability
- EBITDA increased by 23,5% to R983 million (H1 FY25: R796 million)
- EBITDA margin increased by 2,6 percentage points to 18,3% (H1 FY25: 15,7%)
- Revenue increased by 6,2% to R5 382 million (H1 FY25: R5 067 million)
- Net cash inflow before financing activities increased by 32% to R661 million*
(H1 F25: R500 million)
- Strong operational momentum but HEPS and EPS impacted by non-cash unrealised foreign
exchange losses on foreign exchange contracts taken out to hedge US dollar exposure
on the construction of the new Western Cape plant (RK3)
- HEPS and EPS increased by 15% to 25 cents (H1 FY25: 22 cents)
- HEPS and EPS (adjusted for unrealised foreign exchange losses) increased by 32% to 29 cents
(H1 FY25: 22 cents)
- Return on invested capital (ROIC) increased to 13,4% (H1 FY25: 7,1%) as capital allocation
discipline combined with operational performance improvements drive increased returns
*Before the impact of R317 million advance payment in working capital for the RK3 project.
Individual businesses
SA Cement
- Turnaround accelerating with strong momentum and margins trending higher
- Revenue increased by 2,4% to R3 249 million (H1 FY25: R3 173 million)
- EBITDA increased by 30,5% to R569 million (H1 FY25: R436 million)
- EBITDA margins increased by 3,8 percentage points to 17,5% (H1 FY25: 13,7%)
Zimbabwe Cement
- Strong volume growth resulted in revenue increasing by 23,4% to R1 903 million
(H1 FY25: R1 541 million)
- Q2 FY26 recovery after the extended planned shut-down of plant in Q1 FY26
- EBITDA increased by 11% to R446 million (H1 FY25: R402 million)
- EBITDA margins reduced by 2,7 percentage points to 23,4% (H1 FY25: 26,1%)
- Dividends totalling US$20 million were declared during the period (H1 FY25: US$4 million)
Matias Cardarelli, CEO, said:
The "Awaken the Giant" turnaround is not only gaining momentum â€" it is redefining
PPC's trajectory.
Our strategy is delivering tangible results: competitiveness has strengthened, profitability
and cash flow are increasing consistently, and disciplined capital allocation is translating
into superior returns. At 30 September 2025,our 12-month return on invested capital reached
13,4%, exceeding previous guidance for FY26 - FY27. Initial progress is well ahead of the
plan, and there is more to come.
With accelerating net revenue growth in the second quarter, we delivered a strong first-half
performance across all financial metrics with a 24% increase in EBITDA and an EBITDA margin
expanding to 18,3%. These robust results were mainly driven by the performance in the
South African cement business with EBITDA growing more than 30% while Zimbabwe saw a strong
recovery in Q2 after the planned shutdown in Q1. Building on last year's foundations, the plant
performance improvement plan, additional distribution and logistics efficiencies and commercial
opportunities to enhance contribution margin will continue to drive value creation and results
growth. We are already seeing that a more efficient PPC is increasingly able to compete in
its markets.
GROUP PERFORMANCE
PPC delivered a strong operational performance for the six months to 30 September 2025
(the current period) compared to the six months to 30 September 2024 (the prior period),
as EBITDA increased 23,5% to R983 million (H1 FY25: R796 million).
Group revenue increased by 6,2% to R5 382 million (H1 FY25: R5 067 million) due to positive
revenue growth across the cement businesses, especially in the second quarter.
Group cost of sales increased by 4,3% to R4 279 million (H1 FY25: R4 103 million), being a
lower rate of increase than revenue which, when combined with a 5,6% decrease in administration
and other operating expenses and a decrease in the provision for expected credit losses, resulted
in a significant 37% increase in trading profit to R688 million (H1 FY25: R502 million).
EBITDA margins expanded by 2,6 percentage points to 18,3% (H1 FY25: 15,7%) with higher margins
in South Africa more than offsetting the margins achieved in Zimbabwe.
The current period results were impacted by unrealised foreign exchange losses relating to the
outstanding foreign exchange contracts (FECs) entered into by the group for purposes of hedging
the US dollar exposure associated with building the new cement plant in the Western Cape (RK3).
A decision was taken to de-risk PPC's balance sheet from rand weakness given the material
dollar-based capital expenditure associated with RK3.
In the current period, the rand strengthened against the US dollar giving rise to unrealised foreign
exchange losses on the FECs at 30 September 2025 in the amount of R74 million. Realised foreign
exchange losses on the FECs were R34 million during the current period.
No impairments were required in the current nor the prior period.
Finance costs decreased to R37 million (H1 FY25: R59 million) due to overall debt levels and costs
being lower in the current period as debt was re-financed in September 2024. Investment income
reduced to R22 million (H1 FY25: R37 million) on lower total cash balances when compared to the
prior period, due to the cash proceeds on the sale of CIMERWA (Rwanda) being held for the full
prior period before being paid out as a special dividend on 23 September 2024.
Profit before tax increased by 15,6% to R548 million (H1 FY25: R474 million) and profit after tax was
R368 million (H1 FY25: R318 million), with an effective tax rate of 33% for both the current and prior
periods.
Earnings per share (EPS) and headline earnings per share (HEPS) both increased by 15% to 25 cents
(H1 FY25: EPS and HEPS 22 cents). Excluding the impact of unrealised foreign exchange losses on FECs
of R74 million, EPS and HEPS would have increased by 32% to 29 cents, which better reflects the
improvements in operational performance.
The group's net cash inflow before financing activities increased by 30% to R661 million
(H1 FY25: R500 million) before the R317 million impact on working capital in relation to the advance
payment on the RK3 project. Taking the advance payment into account, cash inflow before financing
activities decreased to R344 million, remaining positive for the current period. Cash generation and
working capital management remain a key focus area.
Capital expenditure during the period totalled R225 million, excluding the advance payment on the
RK3 project (H1 FY25: R186 million). The main contributor to the increase of R39 million was maintenance
expenditure in Zimbabwe of R110 million (H1 FY25: R67 million) due to the planned extended shutdown in
the Colleen Bawn plant which forms part of the three-year plant performance improvement plan.
Group net cash improved to R310 million (H1 FY25: R203 million net debt) but declined by R60 million
from a net cash position of R370 million at 31 March 2025.
The SA & Botswana group's net debt to the last 12 months EBITDA was 0,1 times at 30 September 2025,
well below the required covenant level of 2,0 times and the internal target range of 1,3 to 1,5 times.
ROIC increased to 13,4% (H1 FY25: 7,1% and FY25: 10,6%) as capital allocation discipline combined
with operational performance improvements drove increased returns.
SOUTH AFRICA AND BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana increased by 2,0% compared to the prior period,
driven by strong growth in Q2 FY26 following weather-related disruptions in Q1 FY26. This recovery
supported revenue growth of 2,4% to R3 249 million (H1 FY25: R3 173 million) highlighting the momentum
on margin-accretive sales.
In line with the stated strategy of driving operational efficiencies and a focus on contribution margin,
cost of sales decreased by 1,8% to R2 633 million (H1 FY25: R2 680 million) and administration and
other operating costs reduced to R226 million (H1 FY25: R239 million). Gradual improvement in industrial
performance, ongoing savings in procurement and logistics and cost discipline continue to be the main
drivers of the margin growth acceleration.
The positive impact of the strategy resulted in EBITDA increasing 30,5% to R569 million
(H1 FY25: R436 million) as margins expanded by 3,8 percentage points to 17,5% (H1 FY25: 13,7%).
AGGREGATES, READYMIX AND ASH
Overall, revenue for the materials division decreased by 7,1% to R494 million (H1 FY25: R532 million),
predominantly due to lower volumes in the ash business. A continued focus on costs ensured that the
division contributed a positive R14 million (H1 FY25: R28 million) to EBITDA.
ZIMBABWE
PPC's operation in Zimbabwe reported a 25% increase in sales volumes compared to the prior period due
to growing demand in the market and the introduction of a 30% surcharge on cement imports in May 2025.
In US dollars, revenue increased at the same rate as sales volumes, while in rands, revenue for the
current period increased by 23,5% to R1 903 million (H1 FY25: R1 541 million).
As part of the medium-term programme to improve production and efficiency in the Colleen Bawn plant,
an extended shutdown was undertaken in Q1, resulting in the need to import a significant amount of
clinker at a much higher cost. As a result, during Q1, both EBITDA and EBITDA margin declined while
Q2 saw a significant improvement in those metrics, both being above prior period Q2. In the current
period, EBITDA increased 11,0% to R446 million (H1 FY25: R402 million). EBITDA margin declined
2,7 percentage points to 23,4% (H1 FY25: 26,1%) due to the 29% increase in cost of sales to
R1 458 million (H1 FY25: R1 131 million), which was impacted by the imported clinker.
PPC Zimbabwe remains debt-free and had unrestricted cash holdings at 30 September 2025 of
R253 million up from R118 million at 31 March 2024 (H1 FY25: R197 million). Some 96% of PPC Zimbabwe's
cash is held in hard currencies. PPC Zimbabwe declared a total of US$20,0 million in dividends during
the current period (H1 FY25: US$4 million) of which US$12 million was paid in the current period.
On 20 August 2025, PPC Zimbabwe concluded a disposal agreement for the sale of the Arlington land with
Transvaal Africa (Private) Limited. The purchase consideration is US$30 million. The disposal agreement
includes a series of milestone events, which need to be met within defined timeframes, failing which
the disposal agreement will automatically lapse and become null and void.
On 1 October 2025, PPC Zimbabwe and Transvaal Africa (Private) Limited agreed to consolidate the
remaining events which now all need to be met by 27 February 2026.
OUTLOOK
FY25 marked a critical inflection point in PPC, being the starting point of the turnaround. The actions
being implemented have created and will continue to create the capacity to unlock internal value and
increase competitiveness. Capturing market opportunities and leveraging the scale of PPC's footprint
will drive growth going forward.
In South Africa, dynamics in Q2 FY26 are positive as the private sector is active and PPC is well
positioned for the infrastructure projects at provincial level. In Zimbabwe, the strong demand and
PPC's capacity advantage will drive additional quality revenue growth, reinforcing market leadership.
While the second half of the financial year is seasonally softer due to the December to January
construction slowdown, PPC remains committed to consolidating the previous year's efforts and further
implementing the strategy. The focus in the current year will remain on the implementation of the plant
performance improvement plan, the execution of the new RK3 project, the ongoing pursuit of commercial
opportunities to maximise contribution margin, additional distribution efficiency savings, and ensuring
the turnaround is fully rolled out in Zimbabwe.
Delivering on the turnaround plan, continuing to increase profitability, cash flow and maintaining
disciplined capital allocation, while operating safely, remain the priorities to ensure the group
is able to deliver superior returns to shareholders.
The group will continue to apply its strict capital allocation policy and will assess a dividend to
shareholders in terms of the stated policy at the full year-end.
Chair Chief executive officer Chief financial officer
PJ Moleketi SM Cardarelli B Berlin
24 November 2025
Dunkeld
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors. It is only a summary of the
information contained in the condensed unaudited consolidated financial statements for the six months
ended 30 September 2025 (Interim Report) and does not contain full or complete details.
Any investment decision should be based on the full Interim Report, accessible from Monday, 24 November 2025,
via the JSE link as follows: https://senspdf.jse.co.za/documents/2025/JSE/ISSE/PPC/PPC30Sep.pdf and
also available on the Company's website at https://www.ppc.africa/investors-relations /reports/?t=interim
A copy of the Interim Report is also available for inspection at the company's registered office and may
be requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office
hours.
A recorded video webcast of the interim results presentation can be accessed via this
link: https://www.corpcam.com//PPC24112025
Registered office: First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, Johannesburg, 2196, South Africa
(PO Box 787416, Sandton, 2146, South Africa)
DIRECTORS: PJ Moleketi (chair), SM Cardarelli* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa,
NL Mkhondo, MR Thompson
* Argentinian **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
Date: 24-11-2025 07:30:00
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