South Africa: PPC (Pretoria Portland Cement) has reported that its revenue increased by 9% to US$837m for its financial year ending on 30 September 2012 compared to US$777m in 2011.

The leading South African cement producer reported that its gross profit rose by 9% to US$289m in 2012 compared to US$265m. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 8% to US$265m from US$249m. However, net profit decreased by 2% to US$96.1m from US$98.5m. The group attributed this to an increase in taxes in the year.

"Despite another year in a tough economic environment, characterised by overcapacity in the industry, competitive cement pricing, rising energy costs and strike action in adjacent industries, Team PPC delivered good results by improving efficiencies and increasing normalised earnings by 11%," said outgoing PPC chief executive officer Paul Stuiver.

PPC's overall cement sales volumes fell by 3% following lower sales in Botswana and reduced exports, which were partly offset by growing demand in Gauteng, Port Elizabeth and Zimbabwe. PPC's South African cement sales volumes declined by 1%, mainly due to a subdued final quarter of the 2012 financial year. In its financial report PPC warned against cement imports, which it estimated represent 6% of South Africa's national demand.

In its outlook PPC predicted that labour unrest in the mining industry and a transport strike will reduce growth for the remainder of 2012. For 2013 the company is hoping for South African infrastructure programmes to push demand. Markets in Zimbabwe and Botswana should continue growing.