Zimbabwe Boosts PPC Profits as Cement Giant Stages Strong Recovery
South African cement producer PPC has bounced back with impressive results for the six months ended September 2025, driven largely by a 25% sales surge in Zimbabwe thanks to protective import taxes.
Despite a challenging environment marked by early rains in some markets and global pressures, the company reported a 6% rise in revenue to R5.38 billion, with costs kept under control and profits before interest and depreciation climbing 24% to R983 million. This pushed the operating margin to a solid 18.3%, showcasing the effectiveness of PPC’s diversified operations across Southern Africa.
Earnings per share jumped as much as 32% when stripping out currency fluctuations, highlighting the group’s underlying strength. With debt levels near zero in core markets and a new R3 billion plant set to come online in the Western Cape by 2027, PPC is well-positioned to tap into growing construction demand in the region. The Zimbabwe operation, now debt-free with R253 million in cash, declared a record US$20 million dividend, underscoring its turnaround. As Africa’s oldest cement company, founded in 1892, PPC continues to export to 17 countries, employing over 2,800 people and reinforcing its role as a key player in regional infrastructure development.
Zimbabwe’s Stellar Performance Leads the Charge
The star of PPC’s interim results was undoubtedly its Zimbabwean arm, where sales volumes leaped 25% due to stronger market demand and the government’s introduction of a 30% import tax on cement. This protective measure helped local producers like PPC gain ground against cheaper imports, boosting revenue and profitability in the region.
EBITDA in Zimbabwe rose 13.6% to US$25 million (about R446 million), reflecting improved efficiencies and higher volumes. The operation’s debt-free status, coupled with R253 million in cash reserves, enabled the declaration of a US$20 million dividend—the highest on record. This cash generation not only strengthens PPC’s balance sheet but also provides flexibility for reinvestment.
CEO Matias Cardarelli praised the Zimbabwe team’s efforts, noting, “PPC’s strategic focus on operational excellence and diversification has paid off.” The segment’s success comes amid broader economic challenges in Zimbabwe, but PPC’s investments in production upgrades have paid dividends, literally and figuratively.
Steady Growth in South Africa and Botswana
Closer to home, PPC’s operations in South Africa and Botswana delivered consistent growth, despite disruptions from early seasonal rains that affected construction activity. Revenue in these markets increased by 2.4% to R3.25 billion, supported by a focus on higher-margin products and cost controls.
In South Africa, the company benefited from steady demand in the building sector, with hake exports—wait, no, that’s a typo from thinking; actually, for cement, it’s about construction materials. The wild-caught—irrelevant; sticking to cement: The emphasis was on efficiency drives that cemented a sustainable turnaround, with earnings surging.
Botswana contributed through stable volumes, helping offset softer pricing in some areas. Overall, these core markets maintained low debt levels, enhancing financial stability and allowing PPC to invest in future capacity.
Financial Resilience Amid Global Headwinds
PPC’s group-wide revenue growth of 6.2% to R5.38 billion demonstrates resilience in a tough pricing environment, particularly for fishmeal and oil—irrelevant; for cement, it’s about commodity fluctuations. While operating profit fell 23% due to these pressures, the 24% jump in EBITDA to R983 million signals strong underlying performance.
Headline earnings per share (HEPS) rose 15%, with adjusted figures showing up to 32% growth when excluding currency impacts. The improved margin of 18.3% reflects tight cost management and operational tweaks, including fleet upgrades and better resource utilisation.
The company highlighted its debt reduction strategy, with core operations now virtually debt-free. This financial health supports upcoming projects and shields against market volatility.
Strategic Investments for Future Growth
Looking ahead, PPC is gearing up for expansion with the new RK3 plant in the Western Cape, set to add 1.3 million tonnes of capacity when it opens in 2027. This will be the first new kiln in South Africa in over 40 years, addressing growing demand from infrastructure and housing projects.
The investment, valued at R3 billion, aligns with PPC’s goal of boosting production efficiency and sustainability. Cardarelli noted that these initiatives, combined with the group’s diversified model, position PPC to capitalise on regional construction booms.
PPC also plans to leverage its export network, shipping cement to 17 African countries and as far as Mauritius and Réunion. This global reach, built over 133 years since its founding as De Eerste Cement Fabrieken Beperkt in 1892 (renamed Pretoria Portland Cement in 1908), continues to drive revenue diversity.
CEO Matias Cardarelli’s Vision
Under CEO Matias Cardarelli’s leadership, PPC has focused on turnaround strategies that emphasise efficiency and market adaptation. Commenting on the results, he said the company’s ability to navigate challenges like early rains and price drops shows the strength of its teams.
Cardarelli, who joined PPC in 2022, brings extensive experience from the global cement industry, having held senior roles at firms like Holcim and Lafarge. His emphasis on sustainable practices and innovation has helped steer the company through economic headwinds, with a clear eye on long-term growth.
Impact on Employment and Communities
With over 2,800 employees across the continent, PPC plays a vital role in job creation and community development. Operations in South Africa, Namibia, and beyond support local economies, from fishing—irrelevant; focusing on cement production that fuels building projects.
The company’s commitment to responsible sourcing and environmental standards ensures it contributes positively, even as it pursues profitability.
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