JSE-listed PPC on Monday reported a step change, ahead of expectations, in key financial metrics such as its margins, profitability and cash generation for the year ended March 31, which reached its highest levels since the 2018 financial year.

Through its ‘Awaken the Giant’ strategic turnaround plan, the company rebuilt its foundations and changed its strategy, action and delivery, resulting in double-digit increases in earnings before interest, taxes, depreciation and amortisation (Ebitda) and free cash flow.

During the year under review, Ebitda increased 28% to R1.59-billion, Ebitda margin expanded 3.8 percentage points to 16.1% and free cash flow from continuing operations surged 306% to R1.05-billion from the R260-million reported in the prior year.

PPC’s earnings a share and headline earnings a share increased from a respective 6c and 19c in the prior year to 32c and 40c respectively in the 2025 financial year.

Profit before tax increased to R774-million during the year under review, from R233-million in the prior year, while profit after tax increased to R466-million from R88-million.

The cement producer’s group revenue decreased 1.9% to R9.87-billion owing to a 6.7% reduction in Zimbabwe’s revenue, while PPC’s South Africa and Botswana group revenue remained stable with 0.6% increase.

“The 2025 financial year results are remarkable, considering there was not any significant growth in the markets in which PPC operates,” said PPC CEO Matias Cardarelli.

“These results are the highest since the 2018 financial year, considering the current group portfolio. Additionally, we have resumed ordinary dividend payments from the South Africa business segment, which has not been declared since 2016, and there was a record dividend from Zimbabwe,” he continued, adding that this year’s performance is not a result of one-off cost-cutting, but rather the outcome of operational improvements, the introduction of best practices and a focus on core business drivers.

Over the past year, amid a fundamental reset of the organisation, PPC had focused on its core competencies, turning previous gaps into opportunities.

The company now operates with “clarity, confidence and direction”, he said during the company’s results presentation on Monday.

The South Africa and Botswana group’s turnaround execution delivered strong results and margin expansion despite a muted market.

The segment’s cement volumes during the year ended March 31 decreased 2.3%, while revenue increased 0.6% to R6.75-billion.

Ebitda increased 31% to R744-million and the Ebitda margin increased 2.6 percentage points to 11%.

The PPC Zimbabwe operations recorded a 5.5% decrease in cement volumes during the year under review, with revenue decreasing 6.7% to R3.12-billion.

However, Ebitda increased 26% to a record R849-million and the Ebitda margin increased 7 percentage points to 27.2%.

The board declared an ordinary dividend of 17.6c a share – up from 13.7c a share last year – comprising a dividend of 1.9c a share from the South Africa and Botswana group, and a dividend of 15.7c a share received from Zimbabwe.

“We have set a new direction for sustainable growth and value creation for the short-, medium- and long-term,” Cardarelli continued.

While the 2025 financial year was initially "year zero" of PPC’s turnaround strategy, the combined effect of closing the gaps and accelerating the turnaround delivered substantial results ahead of schedule.

“Notwithstanding the significant margin and cash flow improvements in the current year, opportunities remain to unlock additional value. Incremental improvements are anticipated in the 2026 and 2027 financial years from the turnaround efforts.”

The foundations that have been, and will continue to be, built will deliver sustainable growth, he assured, noting that the focus will continue to be on unlocking internal value.

“Ultimately, our competitiveness strategy will position PPC even better once infrastructure projects begin to materialise.”

PPC continues to evaluate projects and strategic options that will support medium- to long-term value creation.

The company signed an engineer, procure and construct contract in March 2025 with Sinoma Overseas Development Company for the construction of a new 1.5-million-tonne-a-year, R3-billion integrated cement plant in the Western Cape, which will replace and increase existing capacity.

“This strategic investment will yield substantial benefits, including improved efficiencies, reduced production costs and a minimised environmental footprint that ensures energy efficiency, while optimising operations to deliver high-quality cement products sustainably and cost-effectively.

“The real benefits of this project are expected to start materialising in the 2028 financial year, and will secure PPC’s competitive position in the market as a result of innovative energy efficiency, reduced coal consumption and lower emissions per tonne of cement,” Cardarelli said.