PPC (PPC) H2 2025 earnings summary

Executive summary

• FY2025 marked the first full year under new leadership, with a strategic turnaround plan and "Awaken the Giant" strategy delivering results ahead of plan, driving operational improvements and profitability.

• The company shifted to a culture of accountability, efficiency, and performance-driven results, launching a platform for long-term growth.

• The turnaround is based on sustainable operational and commercial changes, not one-off cost cuts, with a focus on competitiveness and market leadership.

• Strategic investments in people, technology, and a new integrated plant in the Western Cape underpin future growth and efficiency.

Financial highlights

• Group EBITDA grew 28% to ZAR 1.59 billion, with EBITDA margin up 3.8 percentage points to 16.1%.

• Free cash flow from continuing operations rose to ZAR 1.049 billion (FY24: ZAR 260 million).

• Headline earnings per share increased 111% to ZAR 0.40; headline EPS from continuing operations rose to 17.6 cents.

• Ordinary dividend payment resumed in South Africa for the first time since 2016; total ordinary and special dividends paid amounted to ZAR 734 million.

• Net finance costs reduced to ZAR 43 million (FY24: ZAR 89 million) due to lower borrowings and improved pricing.

Outlook and guidance

• The company expects incremental improvements in EBITDA margin and ROIC through FY2027, with a step change anticipated from FY2028 as new projects come online.

• Sustainable EBITDA margin targeted above 17% in FY26-27, with a step change to over 21% by FY28.

• Net debt to EBITDA is expected to remain below 2x during peak funding for the new plant, with prudent capital allocation and dividend policy maintained.