PPC reports on Rwanda (Cimerwa) cement business

Rwanda continues to see strong demand for cement in all its markets, with cement sales volumes increasing by

13% period-on-period for the five months ended August 2023. Rwanda’s cement sales continued to benefit from

its strong domestic position as demand from infrastructure projects remains robust. Cement exports were

impacted by increased competition due to new competitors. Input cost increases were not able to be fully

absorbed through pricing increases of 6%, resulting in EBITDA increasing by 9% (ZAR) and a reduction in EBITDA

margin to 29% from 32% in the comparable period.

OUTLOOK

PPC’s outlook remains unchanged and it will continue to focus its resources on improving profitability and cash generation in South Africa while preserving its sound market positions in Zimbabwe and Rwanda. There continues to be a need for operational efficiencies and cost containment measures to mitigate rising input costs as the economic climate in PPC’s key South African market remains muted. As previously highlighted, PPC South Africa is well positioned to benefit from an increase in cement demand. PPC Zimbabwe anticipates a continued recovery and the outlook for CIMERWA in Rwanda remains positive.