PPC Zimbabwe cement sales jump 22%

Published: 23 September 2025

Cement manufacturer PPC Zimbabwe Limited (PPCZL) has reported a 22% increase in cement sales volumes for the four months ended July 31, 2025, boosted by strong consumer demand and government-imposed tariffs on imported cement.

In May 2025, the Zimbabwean government introduced a 30% surtax on imported cement under Statutory Instrument 50A, following lobbying from local cement producers. The measure faced legal challenges from importers, who argued it violated COMESA regulations and disrupted business operations.

PPCZL's South African parent company, PPC Limited, said the local unit was already seeing benefits from the legislation. "Cement sales volumes in Zimbabwe increased by 22% in the current period compared to the comparable period, largely due to a combination of strong consumer demand and the positive impact of the 30% tariff on imported cement," the group said in a trading update.

The report also highlighted that PPC Zimbabwe implemented an extended shutdown at its Colleen Bawn plant during the first two months of the period as part of a three-year plant performance improvement plan. The shutdown aimed to position the plant to produce higher volumes of own-clinker to meet growing local demand.

The extended shutdown, along with higher consumption of imported clinker, temporarily affected earnings before interest, taxes, depreciation, and amortisation (EBITDA), reducing the EBITDA margin to 15.3% from 29% in the comparable period. However, margins returned to previous levels once operations resumed, and cash generation remained strong.

PPC announced dividends of US$6 million for the current period, with a total of US$20 million declared for the first half of FY26, up from US$4 million in the same period last year.

The group also updated shareholders on the sale of its Arlington property for US$30 million, noting the transaction remains on track but is not yet reflected in the current period. Once completed, the sale is expected to strengthen PPCZL's balance sheet significantly.

Group revenue increased by 4%, supported by growth in South Africa, Botswana, and Zimbabwe, while overall EBITDA rose to 15.9%, up from 13.7% in the comparable period. PPC expects margins to continue improving in Zimbabwe, even as South African margins experience marginal declines over August and September.

PPC's performance underscores the combined impact of policy support for local manufacturers, strategic operational improvements, and strong market demand for cement in Zimbabwe.
- newsday

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