JSE-listed cement and building materials manufacturer PPC has reported a 6.2% year-on-year increase in revenue and a 23.5% year-on-year increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) for the six months ended September 30.

The group also posted earnings per share (EPS) and headline earnings per share (HEPS) of 25c, up from the EPS and HEPS of 22c reported for the six months ended September 30, 2024.

Excluding the impact of unrealised foreign exchange losses of R54-million, which were incurred on hedges to derisk rand weakness for the construction of the new plant in the Western Cape, EPS and HEPS would have increased to 29c, which is more in line with the improvements in operational performance, the company adds.

Group revenue increased to R5.38-billion, up from R5.06-billion in the prior comparable period, owing to positive revenue growth across the cement businesses, especially in the second quarter of its current financial year.

Ebitda for the interim period increased to R983-million, up from R796-million in the six months to end September 2024.

Ebitda margins also increased by 2.6 percentage points to 18.3%, up from 15.7% in the prior comparable period.

In South Africa, the cement business Ebitda grew by 30.5%, and Ebitda margins increased by 3.8 percentage points to 17.5%.

In Zimbabwe, Ebitda increased by 13.6% to $25-million, with a record dividend declared of $20-million, the company reports.

“PPC’s strategic turnaround plan continues to gain momentum and redefine PPC’s future. Competitiveness is strengthening, profitability and cash flow are increasing consistently and disciplined capital allocation is translating into superior returns,” says PPC CEO Matias Cardarelli.

“We continue to deliver ahead of our financial year 2025 to 2033 strategic plan. This progress is evident in profitability, margin and cash flow generation, as well as in the significant increase in return on invested capital, which reached 13.4%, up from 7.1% in the comparable first-half period,” he says.

Additionally, and building on the prior year's foundations, real progress on the plant performance improvement plans, additional logistics optimisation and the commercial initiatives to enhance contribution margin will continue to drive value creation and results growth, he adds.

Meanwhile, group cost of sales increased by 4.3% to R4.27-billion, up R4.1-billion in the six months to end September 2024, which is a lower rate of increase than revenue.

Trading profit increased by 37% to R688-million, up from R502-million in the six months to end September 2024, owing to this lower than revenue rate of increase and combined with a 5.6% decrease in administration and other operating expenses, and a decrease in the provision for expected credit losses, the company says.

Further, the group’s net cash inflow before financing activities increased by 30% to R661-million, up from R500-million in the six months to end September 2024; however, this was before the R317-million impact on working capital in relation to the advance payment on the RK3 project, PPC says.

Group net cash improved to R310-million for the six months to September 30 this year.

Capital expenditure during the six-month reporting period rose to R225-million, up from R186-million in the six months to end September 2024.

The main contributor to the increase of R39-million was maintenance expenditure in Zimbabwe of R110-million, up from R67-million in the six months to end September 2024, owing to the planned extended shutdown in the Colleen Bawn plant as part of the three-year plant performance improvement plan.

Meanwhile, the financial year to March 31, 2025, marked a critical inflection point for PPC as the starting point of its strategic turnaround.

The actions being implemented are creating 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, the group says.

In South Africa, dynamics in the second quarter of the 2026 financial year reflect signs of recovery with the private sector becoming more active, and PPC well positioned for the infrastructure projects at provincial level.

Further, in Zimbabwe, the strong demand and PPC’s capacity advantage will drive additional revenue growth, reinforcing market leadership.

A technical operational support agreement was recently signed with engineering services firm Sinoma Overseas to improve production efficiency and increase clinker output, among other initiatives.

“The focus in the current year will be to implement the plant performance improvement plan, execute the new plant project in the Western Cape, and continue pursuing commercial opportunities to maximise contribution margin and additional distribution efficiencies, as well as ensure our ‘Awaken the Giant’ strategy is rolled out in Zimbabwe.

“Delivering on the turnaround plan, continuing to increase profitability and cash flow and maintaining disciplined capital allocation also remain priorities to ensure the group is able to deliver superior returns to all stakeholders,” says Cardarelli.