PPC, the South African cement giant, says its EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation) rose by 5%-10% in the four months to July 2019. The rise was posted despite the company’s cement sales falling 10-15% in Southern Africa. PPC note that average cement prices in the Southern Africa region, including Botswana, rose 7%-8% during the analysed period.
A company operational update statement said that domestic cement demand remains constrained due to a “subdued demand environment”. Importer and blender activity have “also contributed to a competitive operating environment”.
PPC report that trading conditions remain difficult in the DR Congo, Ethiopia and Zimbabwe, although strong construction activity in Rwanda has doubled EBITDA and raised sale volumes 35% to 40%.
Looking ahead, the company’s operational update statement said: “PPC will continue to focus on stabilising the performance of its core operations and positioning the group for future growth. The restructuring of the head office will enable the alignment of the business to its operational requirements and enable PPC to focus on maximising EBITDA in all markets it operates in and reducing financial leverage.”
