Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
PPC Zimbabwe has once again demonstrated its financial resilience and operational discipline, closing the financial year ending March 31,2025 with a debt-free balance sheet and unrestricted cash holdings of R118 million — nearly triple the R40 million recorded at the same time last year.
The R118 million is equivalent to US$6 656 784 at an exchange rate of US$1/R17,7256 as of Tuesday morning.
The Zimbabwean unit declared and paid dividends amounting to US$13 million for the year, up from US$11 million in the previous financial year. This robust cash generation significantly contributed to the performance of its parent company, PPC Ltd, enabling the group to declare a gross cash dividend of R274 million — of which R244 million was directly attributable to dividends received from Zimbabwe.
“Zimbabwe remains debt-free and had unrestricted cash holdings of R118 million as at March 31, 2025, up from R40 million at March 31, 2024. Approximately 94 percent of PPC Zimbabwe’s cash is held in hard currencies,” the company stated.
This performance was achieved despite a challenging operating environment, which saw a 5,5 percent year-on-year decline in cement sales volumes. Nevertheless, the company delivered a solid financial outcome, largely due to stringent cost control measures and enhanced operational efficiencies.
“While revenue for the current year declined by 6,7 percent to R3,122 billion (FY24: R3,346 billion), profitability improved significantly due to cost reductions across all categories — variable, fixed and administrative,” PPC reported.
The company further noted: “Against a backdrop of reduced volumes by 5,5 percent, cost of sales fell by 14,4 percent (R392 million), and administrative and other operating expenses decreased by R46 million.
“A combination of lower volumes sold and improved in-country clinker production led to a reduced need for purchased clinker, further boosting margins.”
This cost-conscious strategy yielded strong results. Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged to a record R849 million, up from R675 million in FY24. The EBITDA margin rose by seven percentage points to 27,2 percent, compared to 20,2 percent in the previous year.
Capital expenditure for the reporting period amounted to R147 million, up from R105 million in FY24, primarily due to essential maintenance at the Colleen Bawn integrated plant.
“The increased expenditure was driven by maintenance at the Colleen Bawn plant, which experienced two kiln stoppages during the year — mainly to replace mill liners — compared to a single short stop in the prior year, following an extended kiln shutdown in FY23,” the company explained.
PPC Zimbabwe’s strong financial performance continues to support the broader group. In June 2024, the PPC board adopted a revised dividend distribution policy.
This policy differentiates dividend flows based on leverage levels in the South African and Botswana operations, and those derived from gross dividends received from Zimbabwe.
Notably, the South African and Botswana operations were also net cash positive as of March 31, 2025.
Following a review of its five-year capital investment strategy, which includes the new Western Cape RK3 plant, the board resolved to maintain its dividend pay-out approach.
“An ordinary dividend of 17,6 cents per share has been declared, resulting in a gross cash outlay of R274 million (FY24: R213 million). This comprises a dividend of 1,9 cents per share (R30 million) from the South African and Botswana group, and 15,7 cents per share (R244 million) from dividends received from Zimbabwe,” the company noted.
Group CEO, Mr Matias Cardarelli highlighted the broader turnaround strategy driving the group’s performance.
“The past year has been about rebuilding our foundations, redefining our strategy, and delivering results. We made tough decisions to simplify our structure, attract skilled and experienced talent and most importantly, engage with our people to embed a new organisational culture.
“Implementing phase one of our ‘Awaken the Giant’ strategic turnaround plan has led to a step change in PPC’s FY25 margins, profitability and cash generation.
“Over the past years, we focused on our core competencies, transforming previous challenges into opportunities. The culture of cost discipline and accountability we’ve instilled across the organisation has significantly enhanced business performance and profitability,” he said.
Looking ahead, the company stated that its long-term sustainability strategy is not dependent on broader economic recovery but on unlocking internal value.
“Our focus, as demonstrated by the FY25 results recovery, will remain on unlocking internal value. Ultimately, our competitiveness strategy will better position PPC once infrastructure projects begin to materialise,” the company said.
PPC reaffirmed its commitment to supporting the growth of a successful local cement industry, underscoring Zimbabwe’s strategic importance to the group’s long-term growth trajectory.
