PPC, South Africa’s Largest Cement Producer, Pins Hopes on Government Infrastructure Spend
Earlier this week SA’s biggest cement maker PPC reported that its full-year loss widened in its year to end-March 2023, hit by volume declines in its key markets of SA and Zimbabwe.
PPC CEO Roland van Wijnen said that despite the challenging times, the group was pleased with a reduction in its debt and its strong financial position, which would allow it to “weather the local economic cycle.”
“Increased demand through an enhanced infrastructure programme and a stronger economic climate is required to enable us to more effectively utilise the capacity available in our primary market.”
“We therefore remain hopeful that the South African government will roll out its infrastructure development plans and protect the local cement market through the introduction of blanket import tariffs.”
PPC said on Monday that gross debt declined almost R400 million to about R1.19 billion, while finance costs fell more than a quarter.
A distribution in the form of a share repurchase of up to R200 million was approved by the board, PPC said on Monday. This is equivalent to about 5% of its current market value.