PPC Ltd‘s volumes and revenues in Zimbabwe declined according to the condensed consolidated Financial Statement for the Six Month Period ended 30 September 2019.
The declines have been attributed to the economic challenges currently facing Zimbabwe.
“Volumes declined by 30 – 35%, in-line with the decrease in the overall market, whilst cement pricing was adjusted on a weekly basis to contend with the rapid increase in inflation and the devaluation in currency,” the supplying giant says.
“Revenue declined by 54% to R497 million (Sept 2018: R1 076 million) against the backdrop of a hyperinflationary environment, severe weakening of the ZWL, regular power outages and a weaker cement market.”
The declining sales and volumes were also recorded at the group’s headquarters.
“Group revenue declined by 12% to R4 948 million (Sept 2018: R5 597 million) attributable to a 17% decline in overall cement volumes to 2,6 million tonnes. Southern Africa cement and PPC Zimbabwe were the main contributors to the decline,” the Group says.
“Excluding PPC Zimbabwe, Group revenue declined by 1% and cost of sales were maintained at R3 783 million.”
“Cost of sales reduced by 10% to R4 023 million (Sept 2018: R4 494 million) compared with the previous year,” the group says.
In Southern Africa, PPC’s cement volumes declined by 15% – 20%, where declines were less significant in the coastal regions.
“The competitive environment was exacerbated by imports and blender activity. Cement imports increased by 5% to 849,000 tonnes for calendar year August 2019,” the group explains.