PPC has seen group revenues grow by 8% to US$40m on the back of higher volumes and PPC’s CEO, Johan Claassen, is not ruling out future price rises in South Africa.
Claassen said price hikes were necessary despite PPC’s estimates that capacity would outstrip demand in South Africa by as much as 36% in 2018.
“Our synopsis is that the industry really needs it, and somebody needs to be bold about it,” Claassen said. “To make costs of capital, the cement industry in SA probably requires margins north of 28% cent. We are at about 20%.”
Njombo Lekula, PPC’s South African MD, said, PPC would raise prices in the country by “double-digits”, probably in January 2019. Meanwhile, PPC is trying to extract approximately US$60m from Zimbabwe, which is in a liquidity crunch.