The Sunday News
Oliver Kazunga, Senior Reporter
SOUTH Africa’s cement manufacturer, Pretoria Portland Cement (PPC) has recorded a 40 percent increase in profit in the half-year ended 30 June 2017.
The improved results were largely attributed to the company’s robust performance in Zimbabwe and Rwanda as well as lower finance costs. Last year, the group’s local unit, PPC Zimbabwe commissioned a $75 million cement plant in Harare. Locally, the company has cement manufacturing plants at Cementside in Bulawayo and Colleen Bawn in Gwanda, Matabeleland South.
In a latest trading statement for the half year period under review, PPC said its headline earnings per share likely rose by between 30 and 40 percent in the six months ended 30 September, 2017.
“PPC is finalising its interim results for the six months ended September 30, 2017. The group’s operating cash flow is expected to increase by three percent to six percent compared with the previous period, while net profit attributable to shareholders is expected to increase by 180 percent to 200 percent,” said the company.
The group’s net debt levels have remained in-line with that reported in the operating update announcement of 26 September, 2017.
“And the group remains adequately capitalised to meet its debt repayment obligations. Furthermore, debt restructuring negotiations with the funders both in respect of South Africa debt and the Democratic Republic of Congo funding agreements are progressing well. Furthermore, the group’s ability generate strong cash flows is evidenced by cash and cash equivalents rising between 50 percent and 60 percent on the prior comparable period,” said PPC.
The cement producer was expected to release its interim results for the period ended 30 September, 2017 on 23 November.
