PPC (PPC) H2 2024 earnings summary

Executive summary

• New CEO and leadership team initiated a turnaround strategy focused on simplifying management, improving accountability, and driving operational excellence.

• Revenue increased 20.6% year-over-year to R10,058 million, with EBITDA margin up 1.6 percentage points to 12.3%.

• Headline earnings per share (HEPS) improved to 19 cents from a loss of 20 cents, and an ordinary dividend of 13.7 cents was declared.

• Sale of 51% stake in CIMERWA (Rwanda) completed, with net proceeds of R783 million; special dividend under consideration pending regulatory approval.

• Zimbabwe operations contributed significantly, driven by strong volume growth and currency effects.

Financial highlights

• Revenue from continuing operations increased 20.6% to ZAR 10 billion year-over-year.

• Group EBITDA grew 39% to R1,242 million; margin rose by 1.6 percentage points to 12.3%.

• HEPS from continuing operations improved to ZAR 0.19 per share from a loss of ZAR 0.20 per share last year.

• Ordinary cash dividend of ZAR 0.137 per share declared, first since 2015.

• Free cash flow rose 110% to R260 million; capex was R400 million and share repurchases totaled R199 million.

Outlook and guidance

• FY2025 will focus on rebuilding foundations, with expected results in the following fiscal year.

• Group CapEx for FY2025 expected between ZAR 400 million and ZAR 450 million, mainly for environmental compliance.

• Capital allocation discipline to continue, with focus on improving ROIC and maintaining net debt/EBITDA at 1.3–1.5x for SA & Botswana.

• Management proposes a special cash dividend of 60%-70% of CIMERWA sale proceeds, pending regulatory approval.

• Cautiously optimistic on medium-term macroeconomic environment in South Africa, supported by infrastructure needs and low cement consumption per capita.