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‘PPC Zim trades ahead of expectations’

REGIONAL cement maker PPC says its Zimbabwean unit continues to trade ahead of expectations, with cement volumes expected to increase by between 25% and 29% for the six months ending 30 September 2021.

PPC operates a clinker plant at Colleen Bawn in Gwanda in the southern part of the country, as well as cement-milling plants outside Bulawayo and Harare.

Its Zimbabwean unit is headquartered in Bulawayo.

In its restructuring and refinancing project and operating update for the six months ending 30 September 2021, PPC said its unit in Zimbabwe continues to trade “ahead of expectations” despite the challenging macro-economic environment.

“For the six months ending 30 September 2021, PPC Zimbabwe’s cement sales volumes are expected to increase by 14%-18% year-on-year benefiting from retail demand, increased sales to concrete product manufacturers, and support from government-funded projects. Relative to the comparable period in 2019, cement sales volumes are expected to increase by 25%-29%,” the group said.

Zimbabwe’s business operating environment is characterised by power outages, high inflation, unstable local currency among others.

PPC said it expects total group cement sales volumes for the period under review to increase by 10% to 13% year-on-year, with double-digit volume growth in most business units. 

Relative to the comparable period in 2019, total cement sales are expected to increase by 6% to 9%. The group’s materials businesses also experienced double-digit year-on-year growth in sales volumes. 

On the outlook, the company said although it continues to face uncertain trading conditions, it is well-positioned to benefit from growing cement demand in the territories in which it operates. 

PPC will also continue to take the necessary measures to “ensure that it can continue serving its customers, protecting its employees, and implementing strategic initiatives to ensure financial sustainability through all demand cycles.”

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