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.
