PPC (PPC) CMD 2026 & Trading update summary

Strategic transformation and operational turnaround

• Achieved a group EBITDA margin of 19.4% for the 10 months to January 2026, up from 16.6% in the prior period and 12% two years ago, reflecting a significant operational turnaround and disciplined execution.

• Focus shifted to internal execution, data-driven decision-making, accountability, and a culture of performance, supported by new leadership and value-driven decisions.

• Strategy centers on competitiveness, cost discipline, sustainable value creation, and leveraging technology for long-term margin leadership.

• Market leadership is now based on robust strategic planning, execution, and market insight.

• The Awaken the Giant plan and cultural change have driven results ahead of expectations in South Africa and turnaround progress in Zimbabwe.

Financial performance and capital allocation

• EBITDA grew 48% over the past 22 months, reversing a prior 47% decline from FY 2017 to FY 2023, with group ROIC rising to 13.4% and strong free cash flow.

• Free cash flow in South Africa reached ZAR 438 million for 10 months, with the group achieving a net cash position of R367 million, up from R106 million a year earlier.

• Ordinary dividends resumed after several years, with record cash generation and dividends in Zimbabwe ($36 million paid), and continued dividend flow expected.

• Capital allocation remains disciplined, guided by hurdle rates and payback criteria, with major investments in the RK3 plant and renewables.

• Net debt is projected to remain below target levels by FY28, supporting reinvestment and shareholder returns.

Operational excellence and supply chain optimization

• Plant Performance Improvement Plan (PPIP) and logistics rationalization have driven consistent gains in safety, kiln efficiency, extender utilization, and energy management.

• Achieved a 10% increase in clinker production, 1–2% increase in extender use, and significant cost reductions in logistics and limestone transfer.

• Centralized procurement delivered a 36% cost decline in limestone transfer, improved inventory management, and significant cost savings.

• Safety remains a core value, targeting annual reductions in injury rates.

• Decarbonization plan targets a 22% CO2 reduction by 2030, leveraging extenders, green energy, and operational efficiency.