South Africa: PPC’s sales have fallen due to poor sales volumes in South Africa and Zimbabwe. Its results were also negatively affected by ‘significant’ currency exchange effects between the South African Rand and the Zimbabwean Dollar. Its revenue decreased by 12% year-on-year to US$334m in the six months to 30 September 2019 from US$378m in the same period in 2018. Sales volumes fell by 17% to 2.6Mt. Earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 20% to US$58.6m from US$70.2m.
“The positive operational results in Rwanda and the Democratic Republic of the Congo have partially offset difficult and competitive market conditions in South Africa and Zimbabwe,” said chief executive officer (CEO) Roland Van Wijnen. “PPC has continued its efforts to implement necessary price increases to lay the basis for a sustainable domestic cement industry in South Africa.” In South Africa PPC blamed imports and blender activity for exacerbating a poor local market. It also noted that its fuel costs grew by 30% in the reporting period.