PPC FY revenue flat at R9.9bn

South Africa's largest cement producer, PPC, has reported a significant increase in its full-year loss, with the company's earnings widening from a 3 cents loss to 8 cents, marking a 166 per cent jump. The loss was largely attributed to volume declines in its key markets of South Africa and Zimbabwe. Despite the challenging financial results, revenue, excluding dividends, managed a marginal 1 per cent increase to reach R6.58 billion. The company reported a notable loss of R574 million for the year, a stark contrast from the R77 million reported in the previous year. To shed more light on the company's performance, Roland van Wijnen, CEO of PPC, joined CNBC Africa for an insightful discussion. Van Wijnen expressed optimism about the operating environment, emphasizing the importance of focusing on cash generation rather than earnings due to various non-cash items impacting the financials, especially hyperinflation accounting in Zimbabwe. He highlighted the strong cash generation in Samarwa, Rwanda, and Zimbabwe, enabling the distribution of dividends from these entities. Despite a 6 per cent volume decline in the South African market, PPC managed to generate positive cash flow. The CEO also discussed the company's share repurchasing program, aiming to reward shareholders while maintaining a balanced approach towards debt levels and surplus cash. Van Wijnen further addressed cost management strategies, notably in Zimbabwe, where cost reduction efforts and price adjustments helped mitigate margin pressures. Looking ahead, PPC remains focused on operational excellence and cost efficiency, with growth expectations pinned on government infrastructure projects in Zimbabwe and Rwanda. While acknowledging the challenges in the South African economy, the company sees opportunities for growth in retail and government-driven projects in its African markets. Van Wijnen highlighted the importance of protecting the local cement industry from dumping by advocating for import tariffs to safeguard jobs and industry sustainability. Despite the current economic headwinds, PPC remains poised to capitalize on growth opportunities and maintains a positive outlook for the future.