Cement Giant PPC Zimbabwe Posts Record Profits, Stays Debt-Free
PPC Zimbabwe has reinforced its financial strength, closing the financial year debt-free while increasing its unrestricted cash holdings to R118 million—almost three times last year’s R40 million.
Despite a 5.5 percent decline in cement sales volumes, the company remained profitable, declaring US$13 million in dividends, up from US$11 million the previous year.
This contributed to the parent company, PPC Ltd, which declared a gross cash dividend of R274 million, with R244 million coming from Zimbabwe operations.
Group CEO Matias Cardarelli credited disciplined cost management and structural adjustments for the company’s improved performance.
“The past year has been focused on rebuilding our foundations and refining our strategy.
“We took tough decisions to streamline operations, secure top talent, and reinforce financial discipline”,he said.
Revenue declined 6.7 percent to R3.122 billion, but cost-saving measures helped bolster profitability.
Cost of sales dropped by 14.4 percent, while administrative expenses decreased by R46 million. Increased local clinker production reduced reliance on imports, strengthening margins.
Herald reported that capital expenditure rose to R147 million, mainly due to maintenance at the Colleen Bawn integrated plant following kiln stoppages.
The company explained that this investment was necessary to keep operations running smoothly.
Earnings before interest, tax, depreciation, and amortization (EBITDA) climbed to R849 million, pushing EBITDA margins to 27.2 percent from 20.2 percent in the previous year.
Cardarelli highlighted that PPC Zimbabwe is unlocking internal value rather than depending on broader economic recovery.
“Our goal is to position PPC as a competitive force while preparing for future infrastructure growth,” he added.
Looking ahead, PPC Zimbabwe remains committed to strengthening Zimbabwe’s cement industry, ensuring long-term sustainability despite market challenges.
