PPC to “overcome the challenges ahead.”
The PPC group has faced sustained underperformance and decreasing profitability over a number of years and as reflected at PPC over the past seven months, the comprehensive review of the business revealed internal gaps that are also clear opportunities.
SNAPSHOT OF PERFORMANCE FROM CONTINUING OPERATIONS
- Revenue up 20,6% to R10 058 million (FY23: R8 339 million)
- EBITDA up 38,6% to R1 242 million (FY23: R896 million)
- EBITDA margin up 1,6% points to 12,3% (FY23: 10,7%)
- Free cash flow before financing activities and excluding disposal proceeds
- from sale of CIMERWA, free cash flow of R260 million (FY23: R124 million)
- Ordinary dividend of 13,7 cents per share
- HEPS of 19,0 cents (FY23: loss of 20,0 cents)
- EPS of 6,0 cents (FY23: loss of 21,0 cents)
Matias Cardarelli, CEO, said: “As we look to unlock internal value and drive profitability, the new Exco and I have had to challenge past assumptions and leadership decision-making practices. Our problems are pressing, and it is clear that a meaningful organisational reset and tough decisions are necessary for PPC’s sustainable future.
Where we are failing, where we are missing opportunities and what our strengths are, were some of the questions posed in the design of the turnaround fundamentals. Through a “back to basics” approach and an appropriate focus on operational efficiency, we are looking into our commercial footprint, internal business intelligence data and reliability, logistics model, organisational structure and cost and capital expenditure discipline.
We need to rely on a strong set of values: integrity, sense of urgency, safety, agility and cost consciousness – values that speak to our aspirations. Moreover, we want to outline behaviours that demonstrate these values in a ‘walk-the-talk’ approach.
By refocusing the organisation on its core business, fostering a no-nonsense, get-things-done approach, and implementing agility in decision-making processes, I am confident that we can overcome the challenges ahead.”
