South Africa’s largest producer of cement, Pretoria Portland Cement Ltd (PPC), has reported that its full-year sales rose 8% as inflated selling prices successfully offset the lower volumes brought on by the country’s slowing economy. In the 12 months leading up to September, the company’s net income decreased by 2% to R768 million (US$88 million), while revenue rose 8% to R7.3 billion (US$831 million).
In the face of the slowdown currently being experienced by Africa’s largest economy, and the resulting slip in domestic cement demand, PPC is currently focussing on expanding its interests outside of South Africa in order to bolster its profits. In July, the company agreed to buy approximately 50% of Habesha Cement Share Company, Ethiopia. The company expects this first phase of investment in Ethiopia to increase its revenue outside South Africa from its current level of 21% to approximately 26% within the next three years.
As far as the rest of 2012 goes, the company expects that further unrest in the mining sector and a truck driver strike will lead to “more subdued numbers,” as one company spokesperson put it.
Adapted from various sources by Jack Davidson.
Read the article online at: https://www.worldcement.com/africa-middle-east/13112012/pretoria_portland_cement_full_year_sales_739/