Published: 11 June 2025

PPC Zimbabwe has once again demonstrated its financial resilience and operational discipline, closing the financial year ending March 31, 2025, with a debt-free balance sheet and unrestricted cash holdings of R118 million-nearly triple the R40 million recorded at the same time last year.

At an exchange rate of US$1 to R17.7256 (as of Tuesday morning), this cash holding equates to approximately US$6.66 million. The Zimbabwean unit declared and paid dividends totaling US$13 million for the year, up from US$11 million in the prior financial year. This strong cash generation significantly contributed to the performance of its parent company, PPC Ltd, enabling the group to declare a gross cash dividend of R274 million, of which R244 million was attributable to dividends received from Zimbabwe.

"Zimbabwe remains debt-free and had unrestricted cash holdings of R118 million as at March 31, 2025, up from R40 million at March 31, 2024. Approximately 94 percent of PPC Zimbabwe's cash is held in hard currencies," the company stated.

This impressive financial performance was achieved despite a challenging operating environment that saw cement sales volumes decline by 5.5 percent year-on-year. However, the company managed to deliver solid results through stringent cost control measures and improved operational efficiencies.

While revenue for the year dropped 6.7 percent to R3.122 billion (FY24: R3.346 billion), profitability improved significantly. Cost of sales fell by 14.4 percent (R392 million), and administrative and other operating expenses decreased by R46 million.

"Lower volumes sold combined with increased in-country clinker production reduced the need for imported clinker, further boosting margins," PPC reported.

The cost-conscious approach yielded a record Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) of R849 million, up from R675 million in FY24. The EBITDA margin improved by seven percentage points to 27.2 percent, compared to 20.2 percent the previous year.

Capital expenditure increased to R147 million, up from R105 million in FY24, mainly due to essential maintenance at the Colleen Bawn integrated plant. The company undertook two kiln stoppages during the year, primarily to replace mill liners, compared to just one short stop the prior year following an extended kiln shutdown in FY23.

PPC Zimbabwe's strong performance continues to underpin the group's overall growth. In June 2024, PPC's board adopted a revised dividend distribution policy that differentiates dividends based on leverage levels in South African and Botswana operations versus dividends received from Zimbabwe. Notably, the South African and Botswana units were also net cash positive as of March 31, 2025.

An ordinary dividend of 17.6 cents per share was declared, resulting in a gross cash outlay of R274 million (FY24: R213 million). This comprised 1.9 cents per share (R30 million) from South African and Botswana operations and 15.7 cents per share (R244 million) from Zimbabwe dividends.

Group CEO Matias Cardarelli highlighted the ongoing turnaround strategy driving results: "The past year has been about rebuilding our foundations, redefining our strategy, and delivering results. We made tough decisions to simplify our structure, attract skilled talent, and embed a new organisational culture."

He added, "Implementing phase one of our 'Awaken the Giant' turnaround plan has led to a step change in PPC's FY25 margins, profitability, and cash generation. Our culture of cost discipline and accountability has significantly enhanced performance."

Looking ahead, PPC stated that its long-term sustainability does not depend on macroeconomic recovery but on unlocking internal value.

"Our focus remains on unlocking internal value, as demonstrated by the FY25 results recovery. This competitiveness strategy will better position PPC as infrastructure projects begin to materialise," the company said.

PPC reaffirmed its commitment to growing Zimbabwe's local cement industry, highlighting the country's strategic importance to the group's future growth trajectory.
- zimpapers

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