Modern Quarrying Quarter 1 2021

PPC commissioned its CIMERWA plant in August 2015.

flouting standards to undercut prices. Amid these tough trading conditions, the COVID-19 pandemic struck during the last month of PPC’s financial year in March, with dire consequences. To provide context, PPC Cement South Africa and Botswana saw a decline in revenue of 11% to R4,8-billion, delivering 36% lower EBITDA. Cement volumes were 15% to 20% lower in a market predicted to have contracted by around 7% to 10%. Imports and blender activity further impacted the competitive landscape, with cement imports increasing by 36% to 1,3-million tonnes for the period. Overall, group revenue for FY20 was slightly lower at R10,2-billion, largely due to a reduced contribution from the South African cement business. Resilient Zimbabwe In an environment where the South African business struggled, the inter- national operations had to come in and support the group, says Mokate Ramafoko, MD – PPC International. To provide context, he says the bulk of the R1,6-billion total group EBITDA was generated from markets

KEY TAKEAWAYS

Judging by PPC’s financial results for the year ended 31 March 2020, the tough operating conditions experienced in the home market were offset by resilient performances in markets outside South Africa

PPC Cement South Africa and Botswana saw a decline in revenue of 11% to R4,8-billion, delivering 36% lower EBITDA. Cement volumes were 15% to 20% lower in a market predicted to have contracted by around 7% to 10%

The bulk of the R1,6-billion total group EBITDA was generated from markets outside South Africa

While PPC’s cement volumes in Zimbabwe declined by 15% to 20% in a market that contracted by a similar margin, revenue increased 29% to R1,9-billion, while EBITDA grew by 53% to R707-million, contributing almost 70% of group EBITDA

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QUARTER 1 - 2021 MODERN QUARRYING