PPC’s group revenue rose by 1% in the five months under review, as 4% growth in Zimbabwe offset a 2% decline in South Africa and Botswana. Lower sales volumes were partly countered by improved pricing and product mix.
“Our performance continues to improve. While market conditions have become more challenging, we remain focused on positioning PPC to deliver sustainable value and an even stronger earnings trajectory,” CEO Matias Cardarelli says.
PPC’s Zimbabwe operations delivered a strong performance, while the group’s South African business continued to prioritise value over volume.
“In an environment of weaker demand, rising diesel costs and inflationary pressures, we have expanded margins through pricing discipline, improved product mix and greater operational efficiency,” Cardarelli says.
For the financial year ending March 31, 2027, PPC aims to consolidate the gains made in 2025 and 2026 while completing construction of its new integrated cement plant, RK3, in the Western Cape.
Together with the next phase of its Awaken the Giant turnaround strategy, RK3 is expected to position the group for stronger growth, profitability and value creation. PPC anticipates a further improvement in performance from the 2028 financial year, Cardarelli says.
South Africa and Botswana
Cement sales volumes in PPC’s South African and Botswana operations fell by 8% compared with the same five-month period in the 2026 financial year. Revenue declined by 2%, a smaller drop than the decrease in volumes. PPC attributes this to improved pricing and sales mix, including a diesel cost surcharge.
EBITDA for the South African and Botswana operations, including group services, increased by 3.3%. The EBITDA margin expanded by 0.4 of a percentage point to 17.9%, reflecting improved earnings and margins despite inflation and weak demand.
“Against a backdrop of weak demand, some producers pursued volume growth through aggressive price discounting. This is self-defeating: it does not create additional demand for cement or secure sustainable market share. Instead, it destroys value and undermines profitability,” Cardarelli says.
PPC says it will maintain the commercial discipline established through its turnaround strategy, prioritising value-accretive sales and margin growth. Although matching competitors’ prices would not align with its strategy, the group’s assets, technology, footprint and balance sheet leave it well positioned to respond if necessary, he adds.
Zimbabwe operations
PPC’s Zimbabwe operations increased cement sales volumes by 3% year on year, supported by demand from the industrial and retail sectors.
The company’s plant performance improvement plan is also delivering results. Higher in-house clinker production is boosting profitability, while the Colleen Bawn kiln achieved what PPC described as world-class operating performance in the first quarter of the 2027 financial year.
The Zimbabwe business’s EBITDA margin expanded to 34.2%, from 19.1% in the comparable period. The earlier period was affected by an extended planned maintenance shutdown at Colleen Bawn. PPC says the latest results also reflect improved plant reliability, greater clinker self-sufficiency and disciplined operations.
A planned maintenance shutdown is now under way and is expected to moderate margins in the first half of the 2027 financial year. PPC nevertheless expects profitability in Zimbabwe to remain materially ahead of the prior year. While the shutdown will affect first-half EBITDA, improved margins and cement-volume growth are expected to support results in the second half.
PPC says work is continuing on a proposed new integrated plant in Zimbabwe. This includes discussions with Sinoma on the engineering, procurement and construction contract, mine-prospecting activities, and the assessment of financing options.
Outlook and trade measures
PPC expects to maintain earnings quality through operational improvements, commercial discipline and a focus on value creation and shareholder returns.
The company does not expect South African cement-market conditions to improve in the near term. It says aggressive discounting by some competitors and high diesel prices continue to put pressure on distribution and production costs.
“PPC will remain disciplined and focused on what it can control: competing on quality, delivering reliable service and continuing to strengthen operational performance,” Cardarelli says.
He describes the 2027 financial year as a period for consolidating improvements achieved in the previous two years. The next significant step-up in financial performance is expected in 2028, following RK3’s commissioning.
PPC’s anti-dumping application to the International Trade Administration Commission of South Africa concerning cement imports from Mozambique and Vietnam is progressing. The company says a favourable outcome would be an important step towards restoring fair competition.
“Continued growth in dumped imports, particularly from Mozambique, is undermining fair competition and putting South African jobs, investment and industrial capacity at risk,” Cardarelli says. “The urgent implementation of anti-dumping measures and carbon-border mechanisms is critical to restoring fair market conditions and preventing further economic activity, employment and industrial value from moving outside South Africa.”
A level playing field between domestic producers and importers is essential to sustaining investment, employment and industrial capacity in South Africa, he says.
