PPC Zimbabwe impacted by a longer than usual kiln stoppage
At 30 September 2022, PPC Zimbabwe reported a decline in sales volumes of 13% for the first six months of FY23 due to the impact of a longer than usual kiln stoppage to implement operational and environmental performance improvements with the expectation that sales volumes would recover in H2 of FY23.
Notwithstanding market conditions in Zimbabwe remaining positive due to continued infrastructure investments, sales volumes in H2 FY23 have been muted due to significant power interruptions and a more gradual than anticipated recovery of market share lost to imports.
For the full year, PPC Zimbabwe therefore expects sales volumes to decline by 14% to 18% compared to FY22. PPC Zimbabwe has engaged the authorities to reduce the impact of the lack of electricity on critical industrial sectors such as cement manufacturing and to ensure a level playing field with importers.
The outlook for PPC Zimbabwe remains positive and it is expected that EBITDA and EBITDA margins will continue to recover to the levels of FY22 over the coming months. For FY23, PPC received USD8.8 million in dividends from PPC Zimbabwe (USD6.2 million in FY22). The bi-annual dividend declarations are expected to continue and grow over time.
