PPC hails Zim unit for spurring profits
CEMENT manufacturer PPC has credited the turnaround strategy implemented at its Zimbabwean unit for spurring revenues achieved across the group. The turnaround strategy code named “Awaken the Giant” was launched in 2024 to restore competitiveness and profitability across Southern Africa prompting the transformation of the Zimbabwean unit into a primary driver of group earnings through […] The post PPC hails Zim unit for spurring profits appeared first on NewZimbabwe.com.
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CEMENT manufacturer PPC has credited the turnaround strategy implemented at its Zimbabwean unit for spurring revenues achieved across the group.
The turnaround strategy code named “Awaken the Giant” was launched in 2024 to restore competitiveness and profitability across Southern Africa prompting the transformation of the Zimbabwean unit into a primary driver of group earnings through increased efficiency and high cash generation.
Presenting the latest group performance report, PPC said overall group revenue was driven by Zimbabwe operations where volumes increased by over 22% in the current period supported by sustained strong demand across the industrial and retail sectors. Revenue increased by 19% in rand terms (24% in US$ terms), while EBITDA grew by 23% in rand terms (28% in US$ terms).
After the longer maintenance shut in the first quarter of this financial year, margins have recovered leading to overall increase by 0,9 percentage points, from 26,0% to 26,9%.
On 3 February 2026, after the close of the current period, a mill gearbox failure occurred at the Bulawayo factory, constraining cement milling at the site.
Management has implemented several mitigation measures to minimise disruption for customers. The failure is expected to have a temporary negative impact on margins, mainly in February and March 2026.
“Our turnaround plan is deliberately ambitious. It is designed to rebuild PPC’s iconic status by restoring our competitiveness and long-term value creation. The results for the ten months clearly demonstrate the ongoing and compounding benefits of this strategy,” said PPC CEO Matias Cardarelli.
PPC Zimbabwe saw a steep change in free cash flow generation, leading to the payment of R595m in dividends compared to R142m paid in the comparable period. PPC Zimbabwe remained debt-free and held R7m in cash at January 31, 2026.
“PPC is well positioned to continue executing on its strategy. Growth in full-year 2026 earnings is on top of the robust improvement achieved in 2025. In line with previous guidance, these improvements are expected to be consolidated in 2027, with 2028 anticipated to deliver a further step change as benefits of the new RK3 plant are fully realised,” added Cardarelli.
The post PPC hails Zim unit for spurring profits appeared first on NewZimbabwe.com.
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