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Business Writer
Cement manufacturer, PPC Limited, which is currently suspended from trading on the Zimbabwe Stock Exchange, recorded double digit growth in sales volume for the four months to July 2020 against prior year comparative.
In a trading update released this week, PPC said the double digit year-on-year growth of cement volumes in South Africa during June continued in July as cement sales volumes in South Africa once again showed double digit growth compared to July 2019.
“This was achieved on the back of the strong reduction of imports,” the cement maker highlighted.
PPC also said the resumption of construction activities and the temporary effect of high activity in construction projects to catch up on the delivery of these projects have also had a positive impact on sales.
The total cement volumes sold by the international subsidiaries also showed double digit growth comparing July 2020 with July 2019.
The demand is especially strong in Zimbabwe and Rwanda and the growth of sales volumes during July has been positive in the DRC as well.
The company, however, noted that some of these positives might be temporary and given the economic outlook, management will continue with the implementation of measures to reduce costs and increase cash generation from its operations.
According to PPC, the increased sales volumes and the effect of the cost reduction and cash preservation measures have resulted in cash flows for the last months showing a positive trajectory.
Meanwhile, PPC said it is undertaking a restructuring and refinance project with the objective of implementing a sustainable capital structure.
It expects to reach certain key milestones on this project in the coming weeks, “which will have an impact on the finalisation of the Company’s financial results”.
PPC expects to announce the year ended March 31, 2020 financial results by no later than September 30, 2020.
Online Reporter