JSE-listed cement producer PPC has
reported difficult trading conditions for the nine months to December 31, 2018,
with cement volumes down between 2% and
3%, against a backdrop of estimated market contraction of between 4% and 5%.
Total cement imports had increased
by 80% during the period from January to November 2018, compared with the prior
comparable period, with imports into Cape Town having
increased by 48% to around 209 000 t, although it was still substantially lower
than the imports into Durban, which increased by 84%.
The company had also engaged with authorities with
regard to imports to ensure industry sustainability and also market
Meanwhile, PPC’s SURERANGE product line
continued to gain traction and has positioned the company well against
blended product and
imports. The business continued
to focus on achieving its R70/t profitability initiatives.
Pricing had been aligned with local inflationary
increases. Nonetheless, recent policy announcements regarding fuel price
increases had placed consumers in Zimbabwe under
The fuel increases and cost of living increases
afforded to PPC Zimbabwe employees
was expected to impact on earnings before interest, taxes, depreciation and
amortisation (Ebitda) margins by between 1% and 2%.
through focusing on local procurement, with 90% of
input costs sourced locally; increasing exports to neighbouring countries;
continuing clinker imports from South Africa; and share
buy-backs of PPC shares listed on
the Zimbabwe Stock
In the Democratic
Republic of Congo (DRC), PPC Barnet
continued to operate in a challenging environment, especially
during the December national elections, during which infrastructure demand
PPC was engaging with its lenders to restructure the debt in the DRC and put in place a more sustainable capital structure. http://www.engineeringnews.co.za/article/ppc-navigates-increased-imports-price-changes-in-2018-2019-02-05