PPC (PPC) H1 2025 earnings summary

Executive summary

• The "Awaken the Giant" turnaround strategy is showing early positive results, with leadership and board support, improved cost discipline, and realignment of focus across the group.

• Organisational restructuring and culture changes are underway, focusing on sustainable growth and operational efficiency.

• Financial results for the six months ended 30 September 2024 reflect margin expansion and improved free cash flow despite muted market conditions.

• Special dividend of R521 million paid following the sale of the Rwanda investment.

Financial highlights

• Group revenue declined 4.2% to R5,067 million year-over-year.

• EBITDA margin improved by 0.6 percentage points to 15.7%; EBITDA was R796 million (down 0.6%).

• Headline EPS rose 10% to 22 cents; profit after tax was R318 million, up from R269 million.

• Cash flow from operations before financing grew 36.2% to R500 million.

• Net dividends paid totaled R703 million, including a special dividend from the Rwanda sale.

Outlook and guidance

• Expectation of continued cost savings, margin improvement, and further ramp-up of turnaround initiatives in H2 FY 2025.

• Anticipated recovery of Zimbabwe EBITDA to prior year levels and growth in South Africa and Botswana.

• Full-year CapEx guidance remains R400–R450 million.

• Positive sentiment on infrastructure sector growth and public sector tenders in 2025.

• Dividend policy to be assessed at year-end, with strict capital allocation to continue.