PPC Zimbabwe pays record US$36m dividend

Published: 11 June 2026

South African cement producer PPC Limited has received a record US$36 million dividend from its Zimbabwean subsidiary for the year ended March 31, 2026, nearly three times higher than the US$13 million paid in the previous financial year.

The surge in dividend payments underscores the growing strategic importance of PPC Zimbabwe within the group, as the local operation continues to outperform its regional peers amid subdued growth in South Africa and Botswana.

PPC Zimbabwe recorded strong operational gains during the period, with sales volumes increasing by 18 percent, driving a 14.3 percent rise in revenue and contributing to a 3.9 percent increase in overall group revenue to ZAR10.25 billion.

According to PPC, the Zimbabwean business remains financially robust, maintaining a debt-free balance sheet and holding a significant portion of its cash reserves in foreign currency.

"Zimbabwe remains debt-free and has unrestricted cash holdings at 31 March 2026 of ZAR139 million (FY25: ZAR118 million). Some 99% of PPC Zimbabwe's cash is held in hard currencies," the group said in its annual financial results.

The company confirmed that PPC Zimbabwe declared and paid US$36 million in dividends during the reporting period, marking a record payout for the subsidiary.

"In US dollar terms, revenue increased by 20.5%. Turnaround initiatives gained traction in the current period, including, importantly, an increase in own clinker production of 4% due to operational efficiencies," PPC said.

Revenue from PPC Zimbabwe rose to ZAR3.56 billion, supported by stronger demand and improved production output. The company also noted that a portion of the revenue growth was influenced by a 5.2 percent strengthening of the South African rand against the US dollar.

Operational improvements contributed to higher profitability, with trading profit increasing by 19.5 percent to ZAR761 million, compared to ZAR637 million in the prior year. Earnings before interest, tax, depreciation and amortisation (EBITDA) reached a record ZAR961 million, reflecting continued efficiency gains and sustained demand.

Although the EBITDA margin slightly eased to 26.9 percent from 27.2 percent, profitability improved notably in the second half of the financial year, with margins recovering to 30.9 percent.

Strong cash generation from Zimbabwe has enabled PPC to increase shareholder returns while continuing to fund major capital investments across the group. The company is currently developing the ZAR3.1 billion RK3 integrated cement plant in South Africa's Western Cape, one of its largest infrastructure projects to date.

"The board considered the five-year budgets it approved in March 2026, which included the material capital expenditure commitment for the new integrated plant in the Western Cape (RK3)," PPC said.

In addition to Zimbabwe's contribution, PPC approved a dividend from its South Africa and Botswana operations amounting to ZAR36 million, representing a 20 percent increase from the previous year.

The group also distributed nearly 90 percent of the dividend received from Zimbabwe, translating to ZAR433 million compared to ZAR244 million in the prior year.

Overall, PPC reported a gross dividend distribution of ZAR469 million for the year, up significantly from ZAR274 million previously.

The results highlight Zimbabwe's growing role as a key earnings driver within the PPC group, supported by improved operational efficiency, strong market demand and increased production capacity.

Analysts say the performance reflects broader resilience in Zimbabwe's cement sector, even as regional markets face uneven growth and rising capital expenditure pressures.
- newsday

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