from NDABENI MLOTSHWA in Bulawayo, Zimbabwe
BULAWAYO, (CAJ News) – PPC Zimbabwe has reported a 29 percent increase in revenues to R1,861 billion (US$112,876 million) for the year ended March 31, 2020.
The figure indicates the subsidiary of the South African-based cement and lime supplier defied weak demand, unstable power supply and a shortage of foreign currency prevalent in Zimbabwe.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 53 percent to R707 million.
EBITDA margins improved to 38 percent versus 31,9 percent in March 2019 aided by higher selling prices and lower cost.
PPC Zimbabwe also secured supply contracts for a substantial proportion of the large infrastructure projects in the country, in hard currency, which assisted in alleviating some of the volume declines in the other segments of the market.
The cost base was also restructured to match demand.
Cement volumes declined by 15 percent to 20 percent in a market that contracted by a similar percentage.
Cement pricing was adjusted to account for the increase in inflation and the devaluation of the local currency.
PPC Zimbabwe operates a clinker plant in Colleen Bawn in the southern part of the country, as well as a cement milling plant outside of the second capital city of Bulawayo, at Cement Siding.
Its parent company in South Africa announced revenues dropped to R10,241 billion from R10,494 billion across the group for ten year ended March 31.
– CAJ News