South Africa: Pretoria Portland Cement (PPC) has seen its sales volumes drop by 3% year-on-year in the first half of 2012, which ended on 31 March 2012, mainly due to weak demand from Botswana and the Western Cape region of South Africa. However, the overall group revenue rose by 8% over the same period of 2011 from US$395m to US$427m, due to positive pricing of cement and lime products.
"Our results improved despite being tempered by weak demand in the Western Cape and Botswana and fierce competition on cement prices in all our regions," said PPC CEO Paul Stuiver.
PPC's earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 5% in the half-year, from US$126m to US$132m. Operating profit rose by 4%, from US$99.3m to US$104m. However, costs of sales were 11% higher than in 2011. The group said that it continued to be significantly affected by higher electricity and diesel prices, which both rose by 30% in 2011.
