Investor Information
Sens Announcements
2024
General Repurchase of Shares
General Repurchase of Shares
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
GENERAL REPURCHASE OF SHARES
At the annual general meeting of PPC held on 6 September 2023 ("AGM"), shareholders, by special
resolution, granted a general authority to the board of directors ("the Board") of the Company and its
subsidiaries ("the Group") for the Company and/or its subsidiaries to repurchase up to 10% of the issued
ordinary share capital of the Company, on the terms and subject to the conditions specified in the notice of
AGM.
Shareholders are hereby advised that, during the period commencing on 6 September 2023 to 29 January
2024, the Company's wholly-owned subsidiary, PPC GPCO South Africa Proprietary Limited, repurchased an
aggregate of 46 612 939 ordinary shares, representing 3% of the issued ordinary share capital of the
Company as at the date on which the authority to repurchase the ordinary shares was granted. The
aforementioned ordinary shares were repurchased for an aggregate value of R143 853 790.55 (including
transaction costs), funded out of the Group's available cash resources, as follows:
Aggregate Highest price Lowest price
number of per ordinary per ordinary Aggregate value
Date of ordinary shares share share (excluding
repurchases repurchased repurchased repurchased transaction costs)
6 September
2023 to 29 46 612 939 R4.00 R2.54 R143 325 983.63
January 2024
The repurchases were made in terms of the general authority granted by shareholders at the AGM and were
effected through the order book operated by the JSE Limited trading system without any prior understanding
or arrangement between the Company or subsidiary and the counterparties. All of the requirements for the
general repurchase of ordinary shares in terms of paragraph 5.72 of the JSE Limited Listings Requirements,
have been complied with.
During the prohibited period prior to publication of its financial year 2024 interim results, which were
published on 20 November 2023, the Group repurchased 10 105 498 of the Company's shares at an average
cost of R2.94 per share, totalling R29 740 122.48 (excluding transaction costs), pursuant to a repurchase
programme which was put in place prior to the commencement of the prohibited period in accordance with
the Listings Requirements.
The Group may repurchase a further 108 763 524 ordinary shares up to a total of 155 376 462 (10%) of the
ordinary shares in issue as at the date on which the authority was granted, in terms of the current general
authority, which is valid until the Company's next annual general meeting.
As at the date of this announcement, the Group held 89 347 464 ordinary shares as treasury shares, including
the repurchased shares referred to in this announcement. Treasury shares comprise 56 522 752 shares held
by a subsidiary of the Company and 32 824 712 shares held by structured entities, which are consolidated
for IFRS purposes only.
As all the shares have been repurchased by a wholly-owned subsidiary of the Company, such shares will not
be cancelled but will remain listed and held as treasury shares. As a result, the Group's cash balances
decreased by R143 853 790.55 (including transaction costs of R527 806.92) for the period from the date of
the AGM to the date of this announcement and the repurchases will have the effect of reducing the number
of shares in issue used for purposes of the earnings per share and headline earnings per share calculations
by an additional 46 612 939 shares (being the shares repurchased since the AGM to date), which will be
weighted according to the dates of the various repurchases.
OPINION OF THE BOARD
The Board has considered the effect of the repurchases and is of the opinion that, for a period of 12 months
following the date of this announcement:
• the Company and the Group will be able, in the ordinary course of business, to repay their
debts;
• the consolidated assets of the Company and the Group will be in excess of the consolidated
liabilities of the Company and the Group;
• the Company's and the Group's share capital and reserves will be adequate for the ordinary
business purposes of the Company and the Group; and
• the Company and the Group will have sufficient working capital for ordinary business purposes.
Dunkeld
31 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 31-01-2024 07:30:00
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The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
PPC Successfully Concludes Disposal of its 51% Interest in CIMERWA (Rwanda)
PPC Successfully Concludes Disposal of its 51% Interest in CIMERWA (Rwanda)
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
PPC SUCCESSFULLY CONCLUDES DISPOSAL OF ITS 51% INTEREST IN CIMERWA (RWANDA)
PPC shareholders are referred to the announcement published on the Stock Exchange News Service of
the JSE Limited on 17 November 2023 and are advised that the Company's wholly-owned subsidiary, PPC
International Holdings Proprietary Limited, has successfully concluded the disposal of its entire
shareholding in CIMERWA PLC ("CIMERWA") to National Cement Holding Limited for a cash consideration
of US$42.5 million ("Disposal"). All conditions precedent to the Disposal have been fulfilled and the
proceeds received. Approval by the Common Market for Eastern and Southern Africa (COMESA)
Competition Commission, which is not required before implementation of the Disposal is anticipated to
be received within 120 days. Consequently, the effective date of the Disposal is 25 January 2024.
The PPC Group is net cash positive following receipt of the proceeds of the Disposal.
PPC CEO, Matias Cardarelli, said "I am pleased with the timely completion of the sale of our stake in
CIMERWA. CIMERWA is now part of a regional group that is better placed to support its growth. The
Disposal allows us to focus on our core southern African markets where we see opportunities to drive
improved profitability and secure a more sustainable return on capital.
Dunkeld
25 January 2024
JSE Sponsor Corporate Advisor
Questco Corporate Advisory Proprietary Limited Standard Chartered Bank
Legal Advisor
Cliffe Dekker Hofmeyr Inc.
Date: 25-01-2024 12:31:00
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The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Changes to Executive Leadership Team - Voluntary Announcement
Changes to Executive Leadership Team - Voluntary Announcement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC")
CHANGES TO EXECUTIVE LEADERSHIP TEAM – VOLUNTARY ANNOUNCEMENT
Following the appointment of its new CEO, Matias Cardarelli, with effect from 1 December 2023, the
board of directors of PPC (Board) has approved a substantially reorganised and strengthened
Executive Committee (EXCO) in order to drive improved profitability and a sustainable return on
capital for its South African business.
The new EXCO includes several new roles aimed at enhancing operational excellence and strategic
planning. This includes the appointment of a: Chief Operations Officer (COO) to focus on increasing
efficiencies, productivity and cost reduction initiatives; a Chief Strategy Officer (CSO) who will work
closely with the Chief Financial Officer (CFO), Brenda Berlin, to implement various profit improvement
initiatives, and a Chief Revenue Officer (CRO). The CRO role will be assumed by Mokate Ramafoko,
who will be responsible for creating a single revenue engine and boosting the company's top line.
Ndima Rawana will continue in his role as Chief Human Resources Officer (CHRO) to oversee the
building of a high performing team, and Kevin Ross will join the EXCO as Chief Legal and Compliance
Officer and Company Secretary.
Consequently, PPC is pleased to announce the recruitment of two new executives, Ernesto Acosta and
Paulo Marques, who bring extensive global and South African cement industry experience. Ernesto
Acosta, who will be taking on the role of COO, has spent 25 years with global cement company,
Intercement, running different cement plants and operations in many regions and countries, most
recently as its COO in South Africa. Paulo Marques will serve as CSO, having spent almost 20 years in
various planning, control, strategy and finance positions in two international cement companies,
Cimpor and Intercement, most recently as CFO in South Africa.
PPC CEO, Matias Cardarelli, said: "This is a transformational time for us at PPC. Building the new EXCO
team is the first step in establishing the right organisational structure. At an EXCO level, I believe we
now have the right blend of global and local cement industry experience, institutional knowledge and
energy, to drive PPC's growth, improve profitability and enhance returns. Accountability, ownership,
agility and focus on results, are going to be the distinctive characteristics of the new team".
The PPC EXCO is therefore now comprised of Matias Cardarelli (CEO), Brenda Berlin (CFO), Ernesto
Acosta (COO), Paulo Marques (CSO), Mokate Ramafoko (CRO), Ndima Rawana (CHRO) and Kevin Ross
(Chief Legal Officer and Company Secretary). There are no new appointments to the Board as a
consequence of these changes.
Dunkeld
18 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 18-01-2024 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
2024/01/02
Vesting of Shares to former Chief Executive Officer - Long Term Incentive Plan
View ArticleVesting of Shares to former Chief Executive Officer - Long Term Incentive Plan
Vesting of Shares to former Chief Executive Officer - Long Term Incentive Plan
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "Company" or "Group")
VESTING OF SHARES TO FORMER CHIEF EXECUTIVE OFFICER : LONG TERM INCENTIVE PLAN
The following information is disclosed in respect of the vesting of PPC ordinary shares ("PPC Shares")
to a former director of the Company in terms of the rules of the Company's Long Term Incentive Plan
("LTIP").
Name of Director: Roland Corstiaan van Wijnen
Designation: Director
Nature of transaction: Accelerated vesting of PPC Shares in terms of LTIP
Nature of trade: Off-market
Number of PPC Shares: 6 202 576
Vesting date: 27 December 2023
Price per PPC Share on vesting date: R3.79
Total Value: R23 507 763
Nature of interest: Direct beneficial
Clearance obtained: Not applicable
In terms of the LTIP PPC Shares were awarded to, and held as restricted shares for, Mr Roland van
Wijnen, the former CEO of PPC, in respect of the performance periods ending 31 March 2021 and 31
March 2022, subject to certain performance criteria and a 3 year vesting period.
The performance criteria having been met by Mr van Wijnen during his tenure, PPC's Reward and
Talent Committee has resolved to accelerate the vesting date of these PPC Shares in terms of the rules
of the LTIP to 27 December 2023. Mr van Wijnen's contract of employment terminated on 31
December 2023. No clearance to trade in respect of the vesting is required.
Dunkeld
2 January 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 02-01-2024 12:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
2023
Dealing in Shares pursuant to Long-Term Incentive Plan
Dealing in Shares pursuant to Long-Term Incentive Plan
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DEALING IN SHARES PURSUANT TO LONG-TERM INCENTIVE PLAN
In accordance with paragraph 3.63 of the JSE Listings Requirements, shareholders are advised that Mr
Matias Cardarelli has been awarded PPC ordinary shares ("Shares") pursuant to the Company's long-
term incentive plan ("LTIP") as a sign-on award and in terms of his negotiated fixed term service
agreement, with no performance conditions, which award Mr Cardelli has accepted, as follows:
Director: Mr SM Cardarelli
Designation: Chief Executive Officer
Acceptance date: 23 November 2023
Vesting date: Awarded shares will vest in three equal instalments on the first,
second and third anniversary of the acceptance date.
Number of securities: 7 455 255
Value of Shares awarded: R27 823 276.57
Nature of transaction: Off-market award of shares in terms of LTIP
Class of securities: Ordinary shares
Nature of interest: Direct Beneficial
Clearance to deal obtained: Yes
The value of the Shares awarded in terms of the LTIP is the actual cost (including transaction costs)
incurred between 20 November 2023 and 22 November 2023 for the specific purpose of settling the
Company's obligation in this regard.
Dunkeld
28 November 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 28-11-2023 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
2023/11/27
Leadership and Governance Update - Appointment of Matias Cardarelli as Chief Executive Officer of PPC
View ArticleLeadership and Governance Update - Appointment of Matias Cardarelli as Chief Executive Officer of PPC
Leadership and Governance Update - Appointment of Matias Cardarelli as Chief Executive Officer of PPC
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
LEADERSHIP AND GOVERNANCE UPDATE – APPOINTMENT OF MATIAS CARDARELLI AS CHIEF
EXECUTIVE OFFICER OF PPC
Shareholders are referred to the announcement released on SENS on 4 September 2023, announcing
the appointment of Mr Matias Cardarelli as Chief Executive Officer of PPC subject to Matias receiving
his work permit.
The Board is pleased to announce that Matias' work permit has been issued and that he will formally
take over from Roland van Wijnen with effect from 01 December 2023.
The board would like to thank outgoing CEO Roland van Wijnen for his commitment, hard work, and
loyalty to PPC, its shareholders, employees, and customers.
Dunkeld
27 November 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 27-11-2023 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Group Results for the Six Months ended 30 September 2023
Click below to view full PDF article
https://senspdf.jse.co.za/documents/2023/jse/isse/ppc/PPC30Sep.pdf
Group Results for the Six Months ended 30 September 2023
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(PPC or the company or the group)
SHORT-FORM ANNOUNCEMENT
GROUP RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Roland van Wijnen, CEO, said:
The period under review reflects an encouraging recovery for the PPC group, albeit off a low base. A key driver is
that profitability shows improvement across our core southern African markets, despite the weak macro environment and
decline in cement volumes in South Africa. Moreover, the rolling out of the South African government's infrastructure
development plans and protection of the local cement market through the introduction of import tariffs to create a
level playing field for domestic producers, remain elusive. Increased demand is required to enable us to more
effectively utilise the capacity available in our primary market. PPC Zimbabwe saw a strong recovery across all key
metrics when compared to the negative impact of the planned shutdown in the prior comparative period. Accounting has
been simplified following the adoption of the US dollar as its functional currency. PPC Zimbabwe continues to declare
and pay dividends. Reaching an agreement to dispose of PPC’s 51% stake in CIMERWA (Rwanda) is an important step in PPC’s
strategy of focusing on its core southern African markets. PPC has repurchased R103 million worth of its own shares,
just over half the R200 million approved for this purpose at its FY23 year-end. I would like to thank the many people
who make up the PPC community, and who have been part of the PPC journey during my tenure, for their support, energy
and commitment. Also, I wish them, and my successor Matias Cardarelli, all the best for the future.
Snapshot of performance from continuing operations
Consolidated group
- Revenue up 20,9% to R6 172 million (H1 FY23: R5 103 million)
- EBITDA margin up 3% pts to 17,3% (H1 FY23: 14,3%)
- EBITDA up 46,8% to R1 069 million (H1 FY23: R728 million)
- HEPS of 26 cents (H1 FY23: loss of 5 cents)
- EPS of 24 cents (H1 FY23: loss of 3 cents)
- Agreement to dispose of PPC’s 51% stake in CIMERWA (Rwanda) concluded on 17 November 2023 for
US$42,5 million
Reporting simplified due to hyperinflation no longer being applicable in the current reporting period
INDIVIDUAL BUSINESSES
SA and Botswana group
- Resilient performance in a challenging market
- Revenue, excluding dividends received, increased 2,0% to R3 546 million (H1 FY23: R3 477 million)
- SA and Botswana cement EBITDA margins increased to 12,6% (H1 FY23: 12,2%)
- After spending R103 million on the share repurchase programme, net debt for the SA and Botswana group
nonetheless reduced by R195 million (R70 million since FY23) to R730 million (H1 FY23: R925 million)
PPC Zimbabwe
- Strong recovery following impact of planned extended kiln shutdown in prior comparative period
- Revenue up 104% to R1 743 million (H1 FY23: R855 million)
- EBITDA margins increased to 24,6% (H1 FY23: 17,3%)
- Dividends of US$4,0 million paid (H1 FY23: US$5,0 million). A further dividend of US$7 million was
declared by PPC Zimbabwe in November 2023.
CIMERWA (Rwanda)
- Continued positive trajectory notwithstanding margin pressures
- Revenue up 14,5% to R883 million (H1 FY23: R771 million)
- EBITDA margins decreased to 29,4% (H1 FY23: 32,3%)
- Net cash at 30 September 2023 - R107 million (FY23 net debt of R162 million)
GROUP PERFORMANCE - CONTINUING OPERATIONS
PPC delivered a pleasing performance across all its markets for the six months to 30 September 2023 (the current
period) despite the weak macro environment for its core SA and Botswana group where it saw a decline in cement
volumes. Group revenue for the current period increased by 20.9% to R6 172 million (September 2022: R5 103 million)
driven by a 4% increase in group cement volumes, price increases and the rand depreciation against the US$.
Group cost of sales increased 16,1% to R4 934 million (September 2022: R4 251 million), being a lower rate of
increase than revenue, which, when combined with marginally lower administration and other operating expenses
resulted in a significant increase in operating profit to R675 million (September 2022: R273 million).
Group EBITDA increased by 46,8% to R1 069 million (September 2022: R728 million) as margins expanded in all the
markets, except Rwanda. In addition, there was a significant recovery of market share in Zimbabwe as well as a
return to profitability by the overall materials business.
Fair value and foreign exchange gains decreased from R82 million to R4 million due to the adoption of the US$ as the
functional currency for PPC Zimbabwe, thereby eliminating foreign exchange gains on monetary items held in Zimbabwe.
Similarly, the R206 million net monetary loss in the prior period due to hyperinflation is not applicable in the
current period. An impairment of R53 million relating to property, plant and equipment was made in the current period
(September 2022: Rnil). This is related to the mothballing by Cement SA of its Jupiter milling plant to secure cost
savings.
Finance costs decreased marginally to R81 million (September 2022: R84 million) notwithstanding the increases in
interest rates when compared to the prior period as gross debt continued to reduce. Investment income increased to
R15 million (September 2022: R10 million) on higher cash balances and higher market yields.
During the prior period the group realised a R23 million profit on the disposal of an equity-accounted investment,
Habesha.
Profit before tax increased to R560 million (September 2022: R106 million) and profit after tax was R431 million
(September 2022: R22 million). The effective tax rate for the current period is 23,0% (September 2022: 79%). The prior
period rate was negatively affected by a once off de-recognition of a deferred tax asset in PPC Ltd and the impact of
PPC Zimbabwe inflation.
Earnings per share (EPS) and headline earnings per share (HEPS) increased respectively to 24 cents
(September 2022: 3 cents loss) and 26 cents (September 2022: 5 cents loss).
The group's net cash flow before financing activities increased to R578 million (September 2022: R319 million excluding
discontinued operations) as cash generation remains a key priority.
In line with the disciplined capital allocation policy, capital expenditure for the current period was R219 million
(September 2022: R176 million). The share repurchase programme of R200 million, approved by the board in June 2023, was
52% (R103 million) completed at the end of September 2023.
Group net debt declined to R381 million (September 2022: R677 million) from R765 million at 31 March 2023 due to strong
cash generation as cash balances remain relatively high at R640 million (September 2022: R766 million) when compared to
the 31 March 2023 balance of R424 million. Net debt for the SA and Botswana group improved by R195 million
(R70 million since FY23) to R730 million (H1 FY23: R925 million) and gross leverage levels remain below the target range
of 1,3 - 1,5 x last twelve month's EBITDA.
Zimbabwe remains debt-free and had unrestricted cash holdings at 30 September 2023 of R226 million up from R118 million
at 31 March 2023 (September 2022: R253 million). Some 99,5% of PPC Zimbabwe's cash is held in hard currencies. Zimbabwe
declared and paid a US$4 million dividend during the current period and declared a further US$7,0 million dividend in
November 2023.
CIMERWA's gross debt declined to R167 million from R383 million at 31 March 2023 (September 2022: R365 million). Cash
balances increased marginally to R274 million from R221 million at 31 March 2022 (September 2022: R345 million) as cash
generation contributed positively following the dividend paid in March of R172 million.
SOUTH AFRICA AND BOTSWANA CEMENT
Overall cement sales volumes in South Africa and Botswana for the current period were down 4,7% when compared to
the prior comparative period, mainly due to a decline in sales in the coastal and Botswana regions. Sales were only
marginally negative in the inland region on an improved retail performance despite price increases and an ongoing
oversupply. Industrial and construction demand for technical products remains a strong differentiator for PPC. The
weaker coastal demand was due to a weaker economic environment in the region and excessive rain. Larger construction
projects in the region were also delayed. Imports into South Africa are at a stable level and continue to impact the
domestic industry negatively. In addition, Botswana was negatively impacted by increased Namibian imports supported
by export incentives provided to producers in Namibia.
PPC continues to increase its selling prices on a bi-annual basis and achieved an average selling price increase of
8,8% when compared to the six months ended 30 September 2022. For the six months ended 30 September 2023, South Africa
and Botswana cement revenue increased by 4,7% to R3 158 million (September 2022: R3 015 million), also impacted by 0,4%
adverse product mix.
High input cost inflation was experienced during the period, resulting in variable production costs per tonne cement
sold increasing by some 9,7% compared to the prior period. Stringent cost mitigation measures contained fixed costs,
with such costs decreasing by 1,9% compared to the prior period. Overall, total costs increased by 3,6% compared to
prior period.
EBITDA increased by 8,2% to R398 million (September 2022: R368 million) with a margin of 12,6% (September 2022: 12,2%)
as cost control initiatives combined with bi-annual price increases saw margins stabilise, albeit at low levels.
AGGREGATES, READYMIX AND ASH
Readymix volumes decreased by 19,7%, while aggregates volumes decreased by 16,8% compared to the prior period. Fly
ash sales volumes increased by 13,8%. Overall revenue for the materials division decreased by 6,1% to R586 million
(September 2022: R624 million), due to the largest contributor, readymix, experiencing a significant reduction in
demand offset in part by an increase in the average selling price. The divisional EBITDA increased to a profit of
R14 million (September 2022: R14 million loss) following the successful implementation of turnaround measures
implemented prior to 31 March 2023. These included a reduction of the absolute fixed costs and the conversion of
certain fixed costs to variable costs.
INTERNATIONAL
Zimbabwe
During the current reporting period, PPC's operation in Zimbabwe saw a strong recovery in all its key metrics.
Zimbabwe continued to win back market share it had lost during the planned extended kiln shutdown in the first half
of the prior year. Cement sales volumes increased 44,0% mainly due to improved clinker availability for production,
increased local demand, a reduction in imports and a soft base in the prior comparative numbers due to the extended
shutdown.
PPC Zimbabwe changed its functional currency to US$ and reporting has therefore been simplified as hyperinflation
accounting is no longer applicable. The rand depreciated by 14,9% to the US$ when compared to the prior comparative
period, bolstering the Zimbabwean overall performance when reported in South African rands.
Revenue for the current period increased by 104% in rand terms to R1 743 million (September 2022: R855 million) which,
together with the focus on costs resulted in EBITDA margins increasing to 24,6% (September 2022: 17,3%). PPC Zimbabwe's
EBITDA increased by 190% to R429 million (September 2022: R148 million).
Rwanda
CIMERWA's cement sales volumes increased by 11,9% for the current period when compared to the prior period, as local
and regional demand remains strong albeit with increased competition. CIMERWA is expected to remain in a strong
position to benefit from the continued growth of cement demand.
Revenue for the six months ended 30 September 2023 increased by 14,5% to R883 million (September 2022: R771 million),
as the rand remained relatively stable against the franc, depreciating 1%. In local currency, revenue increased
by 13,2% and EBITDA increased by 4,4% to R260 million (September 2022: R249 million). With low average selling price
increases of 1,3% due to product mix and continued pressure on input cost pricing, EBITDA margins decreased to 29,4%
(September 2022: 32,3%).
LEADERSHIP
Further to the announcement of Matias Cardarelli as the incoming chief executive officer of PPC on 4 September 2023,
shareholders are advised that the necessary work permit has not yet been finalised. However, sound progress has been
made and it is still envisaged that Mr Cardarelli will be able to start during the quarter ending 31 December 2023.
The current managing director of South Africa and Botswana, Njombo Lekula, has announced he will be leaving PPC after
three decades with the organisation. The board thanks Njombo for his invaluable contribution and dedication throughout
his tenure at PPC and wish him the very best for the future. While he will be winding down his involvement and handing
over, he will remain as part of PPC until 31 December 2023. Mr Lekula's role will not be filled but rather merged with
that of the group CEO. This will create a more efficient structure to support PPC's strategic goals.
OUTLOOK
The key focus for PPC will remain on its southern Africa businesses, including South Africa, Botswana and Zimbabwe.
This includes continuing to improve its profitability and enhance returns through further operational efficiencies and cost containment measures. Without a significant increase in
infrastructure spending and South African gross domestic product, South Africa's cement demand is expected to remain
subdued and sustainability is therefore dependent on both capital discipline and margin management. Notwithstanding,
PPC South Africa remains well positioned to benefit from an increase in cement demand with additional capacity readily
available to capture an upswing in demand without significant additional capital expenditure being required. Following
a strong recovery in market share and profitability in PPC Zimbabwe in the current period, the company anticipates at
least maintaining these gains. Further improvements will become possible following the implementation of the fly ash
project, which is still in the procurement stage.
Chairman Chief executive officer Chief financial officer
PJ Moleketi R van Wijnen B Berlin
Sandton
20 November 2023
Short-form announcement
This short-form announcement is the responsibility of the directors. It is only a summary of the information contained
in the full announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Monday, 20 November 2023, via the JSE
link as follows:
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/PPC/PPC30Sep.pdf
and also available on the Company's website at
https://www.ppc.africa/investors-relations/reports/?t=interim
A copy of the full announcement is also available for inspection at the company's registered office and may be
requested from the Company Secretary Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
A live and recorded video webcast of the results presentation will be held today at 10:00am (SAST) and can be
accessed via this link: https://www.corpcam.com//PPC20112023
Registered office:
First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, South Africa
(PO Box 787416, Sandton, 2146, South Africa)
DIRECTORS:
PJ Moleketi (chair), R van Wijnen* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa, NL Mkhondo,
CH Naude, D Smith, MR Thompson,
* Dutch **Danish
Company secretary: KR Ross
Sponsor: Questco Corporate Advisory (Pty) Ltd
Financial Communications adviser: Instinctif Partners, Louise Fortuin Mobile: +27 71 605 4294
Date: 20-11-2023 08:15:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Disposal by PPC Limited of its 51% Interest in CIMERWA - Rwanda
Disposal by PPC Limited of its 51% Interest in CIMERWA - Rwanda
PPC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
("PPC" or "the Company")
DISPOSAL by PPC OF ITS 51% INTEREST IN CIMERWA (RWANDA)
1. INTRODUCTION
PPC shareholders are advised that the Company's wholly-owned subsidiary, PPC International Holdings
Proprietary Limited ("PPCIH"), concluded an agreement (the "Disposal Agreement") on 17 November
2023 ("Signature Date") to dispose of its entire shareholding (the "Disposal Shares") in CIMERWA PLC
("CIMERWA") to National Cement Holding Limited (the "Purchaser"), for a cash consideration of US$42.5
million (the "Disposal Consideration" and the "Disposal").
CIMERWA is a Rwandan-based integrated cement manufacturer in which PPC has held a 51% interest
since 2013. The remaining 49% is held by minority shareholders, and this 49% is listed on the Rwanda
Stock Exchange.
The Purchaser is a privately-owned company and is part of the Devki group that is one of the largest
manufacturers of clinker and cement in East Africa, with operations in Kenya and Uganda.
2. EFFECTIVE DATE
The effective date of the Disposal will be the seventh business day after the day on which the last of the
conditions precedent (as detailed in paragraph 4 below), are fulfilled or waived (the "Effective Date"). On
the Effective Date, all legal risk in and all benefit attaching to the Disposal Shares will pass to the Purchaser
against payment of the Disposal Consideration.
3. RATIONALE FOR THE DISPOSAL AND USE OF PROCEEDS
The Disposal is pursuant to the Company's revised strategy to focus on its core Southern African markets
and results in PPC exiting the last of its Central and East African assets.
PPC believes that the Disposal enables the entry of a new long-term strategic investor in CIMERWA that
has the required financial and technical resources to continue to support and execute CIMERWA's
strategy, which is in line with the Purchaser's strategy to be an expanding regional cement producer.
The use of the Disposal Consideration will be considered by PPC in terms of its capital allocation model
and its optimal gearing levels.
4. CONDITIONS PRECEDENT
The implementation of the Disposal will be subject to the fulfilment and / or waiver of, inter alia, the
following conditions precedent, by no later than 29 February 2024:
4.1 notification by the parties of the Disposal to the Common Market for Eastern and Southern Africa;
4.2 CIMERWA has received tax clearance from the Rwanda Revenue Authority;
4.3 approval of the change of control arising out of the Disposal has been obtained from CIMERWA's
bankers; and
4.4 a non-objection confirmation has been received from the Rwanda Stock Exchange to conduct the
Disposal as an off-market sale/transfer.
5. WARRANTIES AND OTHER MATERIAL TERMS
PPCIH has provided the Purchaser with such warranties as are considered standard for a transaction of
this nature.
National Cement Company Limited, a significant operating company within the Devki group, has furnished
PPC with a corporate guarantee in respect of payment of the Purchase Consideration.
6. FINANCIAL INFORMATION
The financial information set out below has not been reviewed or reported on by a reporting accountant
in terms of Section 8 of the JSE Listings Requirements and is the responsibility of PPC's directors.
CIMERWA had a net asset value of R1.2 billion as at 31 March 2023, being the date of the Company's last
financial year-end, and recorded a net profit after tax of R237 million for the year ended 31 March 2023.
At 31 March 2023, PPC had recorded the Disposal Shares at a total book value of US$38.5 million (R275.2
million).
The above financial information has been extracted from PPC's audited and consolidated annual financial
statements for the year ended 31 March 2023, which were prepared in accordance with International
Financial Reporting Standards.
7. CATEGORISATION
The Disposal is classified as a category 2 transaction in terms of the JSE Listings Requirements and,
accordingly, does not require shareholder approval.
Dunkeld
17 November 2023
JSE Sponsor
Questco Corporate Advisory Proprietary Limited
Corporate Advisor
Standard Chartered Bank
Legal Advisor
Cliffe Dekker Hofmeyr Inc.
Date: 17-11-2023 02:16:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Trading Statement for the six month ended 30 September 2023
Trading Statement for the six month ended 30 September 2023
PPC Limited
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC
ZSE code: PPC
("PPC" or "the group")
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
PPC is currently finalising its results for the six months ended 30 September 2023 ("the current period").
Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the
expected earnings per share ("EPS") and headline earning per share ("HEPS") for the current period will
differ by at least 20% from that for the previous corresponding period, being the six months ended 30
September 2022 ("the prior period") and that a trading statement is required in terms of the JSE Limited
Listings Requirements.
This difference is primarily due to the current period EPS and HEPS numbers being impacted by a strong
performance by PPC Zimbabwe in the current period compared to the prior period in which it had an
extended kiln shutdown. In addition, in the current period, PPC Zimbabwe changed its functional currency
from the Zimbabwean dollar to the United States dollar and this also had a positive impact given the
elimination of net monetary losses arising in the prior period due to hyperinflation accounting.
The following EPS and HEPS for the group are expected:
Current period Prior period
Expectation range Restated*
EPS (cents) 1 21.0 to 25.0 (30)
HEPS (cents) 1 25.5 to 26.5 (6)
1 Brackets denote losses per share
*Shareholders are referred to the annual financial statements for the year ended 31 March 2023, where-in it was
reported that net impairments had incorrectly been taken in prior periods on the classification of PPC Barnet as a
disposal group, which should instead have been taken as a loss from discontinued operations when control was
actually lost, being 29 April 2022. The comparatives for the financial year ended 31 March 2022, were accordingly re-
stated for these non-cash adjustments. This also affects the prior period and the EPS will accordingly be re-stated for
the PPC group from (9) cents to (30) cents as stated above.
Moreover, the South Africa & Botswana Cement and Rwanda (CIMERWA) EBITDA margins remain in line
with those disclosed in the operational update, dated 20 September 2023, of 11% and 29% respectively.
The financial information on which this trading statement is based is the responsibility of the directors of
PPC and has not been reviewed or reported on by the group's independent external auditor. Full details of
the groups' performance will be contained in the group's unaudited consolidated financial statements for
the six months ended 30 September 2023, which are expected to be released on or about 20 November
2023.
Dunkeld
9 November 2023
Sponsor
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners Louise Fortuin
Mobile: +27 71 605 4294
Date: 09-11-2023 12:40:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Operating Update for the five months ended 31 August 2023
Operating Update for the five months ended 31 August 2023
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “the company” or “the group”)
OPERATING UPDATE FOR THE FIVE MONTHS ENDED 31 AUGUST 2023
GROUP PERFORMANCE
For the five months ended August 2023, compared to the five months ended August 2022 (the “comparable
period”), revenue for PPC’s South Africa (“SA”) and Botswana group (previously referred to as SA obligor group),
which excludes Zimbabwe and Rwanda (CIMERWA), increased by 5%, driven by an increase of average selling
prices despite weaker cement sales volumes. Revenues from the group’s operations in both Zimbabwe and
Rwanda were materially stronger than the comparable period increasing by 58% (US$ parallel rate) and 19% (in
ZAR) respectively.
Group cement sales volumes (including Zimbabwe and Rwanda) for the five months ended August 2023 were 3%
higher than the comparable period due to exceptionally strong growth in Zimbabwe and, to a lesser extent,
Rwanda, while cement volumes continued to decline in South Africa. While the materials business continued to
see a decline in volumes, the cost reduction actions and price increases implemented resulted in EBITDA turning
from negative in the comparable period to neutral in the five months ended August 2023.
EBITDA margins for SA and Botswana cement were flat against the comparable period at 11%, as price increases
and cost initiatives enabled the margin to be maintained.
Cash generation in the SA and Botswana group was positive due to the stabilised cement EBITDA, improvement
in the materials business EBITDA and lower than anticipated capital expenditure. Cash generation includes a
dividend received from Zimbabwe in July 2023 of R76 million ($3.5 million) compared to R68 million ($4.2 million)
in the comparable period.
SOUTH AFRICA & BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana decreased by 6% period-on-period for the five months ended
August 2023. Cement sales volumes in the inland region continued their decline, albeit at a significantly lower
rate, while the coastal region saw a downturn in volumes following higher than usual rainfall and weak retail
demand.
The average selling price increased by 10% during the period under review as bi-annual increases were
implemented in January and July 2023. Notwithstanding the lower volumes, this resulted in revenue growth of
5%. EBITDA for the period also increased by 5% as margins stabilised when compared to the comparable period.
PPC will continue its efforts to counter input price inflation through price adjustments, operational efficiencies
and improved industrial performance. SA and Botswana group’s gross debt remains unchanged from 31 March
2023, but cash has increased from R131 million to R283 million, leaving net debt at R648 million at 31 August
2023 from R800 million at 31 March 2023.
The BEE transaction announced on SENS on 7 August 2023 for 10% of PPC South Africa Holdings Proprietary
Limited (“PPC SA Holdings”) is for the benefit of PPC’s South African employees. Qualifying South African
employees therefore participated in the amount paid by PPC Cement SA (Proprietary) Limited to PPC SA Holdings
to enable it to declare a dividend to PPC, which will be utilised to fund the share repurchase of R200 million
announced in June 2023.
MATERIALS
The materials business is now contributing marginally to the EBITDA of the SA and Botswana group following the
implementation of various improvement actions. Price increases across ash, aggregates and readymix together
with an improved cost structure resulted in marginally positive EBITDA compared to a negative in the comparable
period.
ZIMBABWE
The cement market in Zimbabwe continued to show growth as a result of both residential construction and
government funded infrastructure projects. PPC Zimbabwe continued to win back market share during the period
following the planned maintenance shut down in the prior year. Cement sales volumes increased 42% period on
period.
PPC Zimbabwe’s average US$ selling price increased by 12% (US$ parallel rate) during the period. The improved
volumes and pricing allowed for a meaningful improvement in EBITDA margins to 27%, a significant improvement
from 14% in the comparable period, when there was a planned shutdown.
PPC received a US$3.5 million dividend in July 2023 and anticipates an additional dividend to be declared upon
the publication of PPC Zimbabwe's interim results in November 2023.
Shareholders were previously advised that 19% of the 29.6% of PPC Zimbabwe held by various indigenisation
parties vested on 5 July 2023 and PPC Zimbabwe expected to re-purchase such shares at US$ one cent each in
accordance with the relevant agreements. The repurchase of such shares was approved at an extraordinary
general meeting of PPC Zimbabwe’s shareholders on 29 August 2023 and all such shares were subsequently re-
purchased at US$ one cent each and cancelled. Consequently, PPC now holds 90% of PPC Zimbabwe.
Economically, PPC will receive 99.5% of all dividends until the notional vendor financing of the remaining
indigenous shareholder is repaid. Once-off costs incurred by PPC in connection with the unwinding of the
indigenisation transaction amounted to R42 million.
RWANDA (CIMERWA)
Rwanda continues to see strong demand for cement in all its markets, with cement sales volumes increasing by
13% period-on-period for the five months ended August 2023. Rwanda’s cement sales continued to benefit from
its strong domestic position as demand from infrastructure projects remains robust. Cement exports were
impacted by increased competition due to new competitors. Input cost increases were not able to be fully
absorbed through pricing increases of 6%, resulting in EBITDA increasing by 9% (ZAR) and a reduction in EBITDA
margin to 29% from 32% in the comparable period.
OUTLOOK
PPC’s outlook remains unchanged and it will continue to focus its resources on improving profitability and cash
generation in South Africa while preserving its sound market positions in Zimbabwe and Rwanda. There continues
to be a need for operational efficiencies and cost containment measures to mitigate rising input costs as the
economic climate in PPC’s key South African market remains muted. As previously highlighted, PPC South Africa
is well positioned to benefit from an increase in cement demand. PPC Zimbabwe anticipates a continued recovery
and the outlook for CIMERWA in Rwanda remains positive.
PPC is participating in the RMB Morgan Stanley Big Five and Off Piste Investor Conference in Cape Town on 20
September 2023 and the presentation to be given at this conference is available on the company’s website
www.ppc.africa/investors-relations/reports/?t=presentations-allocate
Dunkeld
20 September 2023
Sponsor:
Questco Corporate Advisory Proprietary Limited
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294
Date: 20-09-2023 07:30:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.