PPC sees earnings jump despite muted demand in SA

Leading Southern African supplier of cement, PPC, has reported a hike in its earnings for the year ended 31 March 2026. This makes it a second consecutive year of strong turnaround-driven performance, with a step-change in results across all key financial metrics.

Group earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 31% to more than R2 billion, compared to the R1.6 billion reported in the 2025 financial year.

Earnings per share for the year under review increased 75% to 56 cents, in line with the significant increase in profit for the year, while headline earnings per share (Heps) increased from 40 cents to 50 cents.

This is mainly due to the adjustments for the after tax impairment and the elimination of profit on the sale of property, plant and equipment.

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It says South African cement was the main driver of the results expansion, while Zimbabwe registered a “great performance” in the second half of the year.

“This performance is significantly ahead of expectations and has positioned PPC for its next step change, anticipated in the 2028 financial year, following the conclusion of the construction of the new state-of-the-art integrated cement plant in the Western Cape,” PPC CEO, Matias Cardarelli told investors in a Sens on Monday.

Review of operations

Cement sales volumes in South Africa and Botswana, including clinker sales to Zimbabwe, were up 1.3% when compared to the prior year. In South Africa, volumes remained stable in the context of muted demand.

The firm says notwithstanding muted growth in volumes, higher average selling prices resulted in cement revenues increasing year-on-year, even in a pricing environment that remained challenging.

PPC Zimbabwe reported an 18% increase in sales volumes compared to the prior year, reflecting the “benefit of its national footprint and turnaround actions in a growing demand market”. The Zimbabwean operations’ Ebitda increased by 19%.

The continued execution of the turnaround strategy drove a second step-change in operational leverage with the group’s cost of sales contained to a 2% increase. It says this was the main driver of the trading profit improvement of 50% to R1.5 billion.

“PPC’s long-term sustainability is firmly anchored in strong fundamentals, not the state of the broader economic environment. PPC has consistently demonstrated over the last two years that profitability is driven by competitiveness and is not dependent on topline expansion,” Cardarelli added.

The cement maker, valued at more than R10 billion on the JSE, hiked its dividend to 30.2 cents per share, from 17.6 cents per share previously. This amounts to a payout of R469 million, a 72% increase.

PPC share price

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