Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
PPC Zimbabwe is emerging as a serial dividend-paying operation, after the cement producer declared US$25 million to shareholders following a sharp improvement in operational efficiency that translated into stronger cash generation.
The company declared US$15 million during the five months to August 31, 2026, compared with US$12 million in the same period, before declaring a further US$10 million at the end of August.
This comes after the cement maker declared and paid a record US$36 million in total dividends to its parent company, PPC Limited, in 2025, driven by an 18 percent surge in cement sales volumes and strong operational cash generation.
The performance underlines the financial gains from PPC Zimbabwe’s ongoing operational turnaround initiatives, with the business remaining debt-free while expanding cement volumes and substantially improving profitability.
The PPC group comprises the South Africa and Botswana operations, which include cement, materials and group services and the Zimbabwean cement business.
PPC Zimbabwe’s earnings before interest, tax, depreciation and amortisation (EBITDA) margin surged to 34,2 percent from 19,1 percent in the comparable period, supported by higher clinker self-sufficiency, improved plant reliability and disciplined operational execution.
“PPC Zimbabwe delivered another strong performance with an EBITDA margin expanding to 34,2 percent from 19,1 percent in the comparable period.
“While the comparable period was impacted by an extended planned maintenance shutdown at Colleen Bawn, the current results also reflect the structural benefits of improved plant reliability, higher clinker self-sufficiency and disciplined operational execution,” the group said.
The performance is significant for Zimbabwean manufacturing entities, for which generating and retaining hard-currency earnings remains critical for investment, capacity expansion and shareholder returns.
PPC Zimbabwe’s cement sales volumes increased three percent during the period, reflecting sustained demand from both industrial and retail markets.
At group level, Zimbabwe revenue grew five percent, offsetting a two percent decline in cement revenue from the South African and Botswana operations.
“Positive revenue growth in Zimbabwe of 5 percent was offset by a 2 percent decline in SA and Botswana cement revenue, which reflects lower sales volumes partly recovered through improved price and product mix.”
The company said its Plant Performance Improvement Plan was producing tangible gains, particularly through increased own-clinker production.
“The plant performance improvement plan (“PPIP”) continues to deliver tangible results.
“Higher own-clinker production is translating directly into improved profitability, while the Colleen Bawn kiln achieved world-class operating performance during the first quarter of FY27.”
The combination of stronger margins, increased volumes and a debt-free balance sheet has strengthened PPC Zimbabwe’s capacity to return cash to shareholders while continuing to operate and invest in its production base.
“Cash generation remained strong, supporting increased shareholder returns. PPC Zimbabwe declared dividends of US$15 million during the current period compared to US$12 million in the comparable period.
“A further $10million was declared after the end of August 2026. PPC Zimbabwe remains debt-free.” However, the company cautioned that the current maintenance shutdown at Colleen Bawn would moderate margins in the first half of FY27.
“The planned maintenance shutdown is currently underway and will moderate the margins to be reported for the first half of FY27.
“Profitability is expected to remain ahead of the prior year, underscoring the significant progress achieved through the turnaround and the strength of the Zimbabwe business.”
PPC said the improvement in margins, combined with cement volume growth, should continue supporting performance in the second half of the financial year.
“In Zimbabwe, EBITDA reported at the half-year will be moderated by the planned Colleen Bawn plant shutdown, while the compounding impact of improved margins with cement volume growth is expected to continue to benefit the results in the second half of the year.”
Beyond current operations, PPC is progressing plans for a new integrated plant in Zimbabwe, including engagement with Sinoma on the EPC contract, mine prospecting and assessment of financing options.
