South African cement producer PPC’s Zimbabwe unit reported a 34 percent jump in annual revenue to R1.813 billion ($132 million) boosted by volumes growth of 46 percent, the company has reported.
This follows the commissioning of a $82 million plant in Harare in 2016 which doubled its capacity to 1.4 million tonnes per annum in the country.
The company has two other plants in Bulawayo and Colleen Bawn near Gwanda with production capacity of 700 000 tonnes annually.
It also has operations in South Africa, Ethiopia, Botswana, Rwanda and DRC, but it is the local operations, along with the Rwanda market, that helped push the group’s revenue more than two-fold jump.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) at R573 million ($41.9 million) were 31 percent up on the prior year.
Net interest income came in at R105 million ($7.68 million), more than quadrupling the R19 million in the prior year.
However, net profit was 12 percent down at R180 million from the R203 million achieved last year.
Prices rose by three percent during the period.
The company noted that business sentiment had improved in the southern African country since former President Robert Mugabe was ousted in a military coup last November and was replaced by President Emmerson Mnangagwa.
“The political landscape is improving in Zimbabwe, with elections scheduled for July (30), 2018. PPC Zimbabwe is well positioned to benefit from improved growth prospects,” said the company. – The Source