PPC to report higher interim earnings
JSE-listed PPC expects its earnings per share (EPS) and headline earnings per shares (HEPS) for the six months ended September 30 to be between 8.3% and 18.7% year-on-year.
Adjusted EPS and HEPS are expected to be between 27% and 36% higher.
The group expects to release its results for the period on November 24.
PPC is finalising its results, but has elected to release a voluntary trading statement regarding the expected EPS and HEPS, as well as the expected EPS and HEPS adjusted for the unrealised foreign exchange losses, in the current period.
This is owing to current period results having been 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).
Management, supported by the board of directors, took a decision 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 has strengthened against the dollar, giving rise to unrealised foreign exchange losses on the FECs at period end.
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