JSE-listed cement and related products company PPC has reported a more than 20% year-on-year increase in group earnings before interest, taxes, depreciation and amortisation (Ebitda) for the first four months of its 2026 financial year.

Its Ebitda margin grew by more than two percentage points to 15.9%, with margins expected to continue increasing from the current level.

Group revenue for the four-month period increased by 4%, driven by growth in both South Africa and Zimbabwe, the company says.

“As we enter the second year of our strategic turnaround plan, we are making consistent progress, which is resulting in further growth and margin expansion. This is on top of what was achieved in the 2025 financial year, which also delivered marked improvements across all key metrics,” says PPC CEO Matias Cardarelli.

In South Africa, Ebitda over the past four months has delivered a notable improvement, with the Ebitda margin having increased by 7.4 percentage points to 17.7% from 10.3% in the comparable period of the 2025 financial year.

The South African economic environment, nevertheless, remains challenging, with low levels of infrastructure development.

However, sales volumes increased by 2% relative to the comparable period in the prior financial year owing to stronger retail sales and higher sales of clinker to PPC Zimbabwe, Cardarelli notes.

Cement sales volumes in Zimbabwe increased by 22% year-on-year in the four-month period under review.

Further, during the first two months of the current financial year, PPC Zimbabwe implemented a planned extended shutdown in its Colleen Bawn plant.

This was planned as part of the three-year plant performance improvement plan, which was aimed at better positioning PPC Zimbabwe to produce higher volumes of own-clinker for the production of cement to supply the growing demand in the market.

The costs of the extended shutdown, combined with the higher consumption of imported clinker, temporarily impacted on Ebitda and the Ebitda margin in the first three months of the financial year, Cardarelli says.

PPC Zimbabwe’s Ebitda margin decreased to 15.3% from 29% in the prior comparable period. After the extended shutdown, the monthly Ebitda margin returned to the level achieved in the comparable period, he adds.

Further, cash generation remained strong, resulting in PPC Zimbabwe declaring $20-million in dividends in the first half of the current financial year, compared with $4-million in the first half of the prior financial year.

Meanwhile, the sale of the Arlington property for $30-million remains on track, but has not been accounted for in the current financial year.

“We remain focused on the execution of the turnaround strategy. We know what needs to be done, and we are focused on doing it. We will continue to build on the progress already achieved, maintaining discipline and focus where it matters most,” he says.

Additionally, PPC continues to balance short-term and long-term performance. Growth is still being achieved off a strong 2025 financial year, and the new Western Cape plant remains on track and gearing projections remain unchanged.

“Our strategic turnaround is focused on long-term leadership and competitiveness through improved profitability and cash flow. Our commitment is to stay the course, execute with precision and ensure every step we take continues creating long-term sustainable value for our stakeholders.”