Zimbabwe cement sales volumes increase by 28% year-on-year
PPC Zimbabwe continues to trade ahead of expectations even though trading conditions remain challenging due to the macro-economic environment. For the 12 months ended 31 March 2022, cement sales volumes increased by 28% year-on-year due to retail demand and support from government-funded projects. Relative to the 12 months ended 31 March 2020 (pre-COVID-19), volumes increased by 41%.
Revenue increased by 34% to R2 172 million (March 2021: R1 623 million) as a result of increased cement sales volumes.
Compared to the 12 months ended 31 March 2020 (pre-COVID-19), revenue increased by 17%. PPC Zimbabwe adjusted selling prices in local currency and US Dollar (US$) to reflect currency depreciation and input cost inflation respectively.
EBITDA for the 12 months ended 31 March 2022 declined by 18,3% to R393 million (March 2021: R481 million) with a reduced EBITDA margin of 18,1% (March 2021: 29,6%). PPC Zimbabwe incurred additional costs in importing clinker to support volume growth and offset the impact of a planned and unplanned kiln shutdown during the period. The importation of clinker, higher maintenance costs and the depreciation of the ZWL dollar against the ZAR negatively impacted EBITDA.
The Reserve Bank of Zimbabwe (RBZ) honoured its obligation to settle PPC Zimbabwe’s legacy debt. The debt was fully repaid during December 2021. PPC Zimbabwe is financially self-sufficient and is focused on cash preservation and maximising US$ EBITDA. PPC received US$6,2 million in dividends from PPC Zimbabwe in FY22, plus an additional US$4,4 million in June 2022.
