South Africa’s PPC has issued its results for the six months to March, which reveal a 9% increase in revenue to R4.157 billion on the back of higher export volumes, improved prices, positive exchange rate effects and the consolidation of sales from Safika Cement and Cimerwa. Operating profit was up 3% at R884 million.
Chief Executive Ketso Gordhan said, “PPC’s group cement sales ended 2% higher during this reporting period. Improvements in export sales and the consolidation of sales from our Rwanda operation and newly acquired Safika Cement business were partly offset by declining sales volumes in South Africa and Botswana.” Strikes at platinum mines and poor weather were partly to blame for falling sales in South Africa, he added.
Meanwhile, PPC Ltd plans to increase cement production capacity by 75% with the expectation of achieving 14 million t capacity by the end of 2017. The company is expanding across Africa and has projects ongoing in Rwanda, DRC, Zimbabwe and Ethiopia, which will help to achieve its target of 40% of sales outside of South Africa by 2017. Furthermore, the company is acquiring a 49% stake in Algeria’s Hodna Cement Co., a new 2 million tpa plant set to begin operations within three years.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/africa-middle-east/20052014/ppc_reports_revenue_increase_despite_falling_sales_in_sa_224/