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Cement producer PPC has announced record-breaking financial results for its Zimbabwe operations for the year ending March 2025, showcasing earnings growth despite a 5.5% decline in cement sales volumes. The company reported a significant rise in EBITDA (earnings before interest, taxes, depreciation, and amortisation), a key indicator of operational performance, which climbed to R849 million (USD$48 million), up from R675 million the previous year.
The financial performance comes amid increased competition from imported cement, which has put pressure on local producers and contributed to the drop in sales. However, PPC’s stringent cost-control measures and record-high clinker production helped offset the sales slump, ensuring continued profitability.
By Gamuchirai Mapako
One of the standout highlights of PPC Zimbabwe’s performance is the substantial dividend pay-out. The USD$13 million received by the parent company marks the highest dividend distribution from the Zimbabwean business to date, underscoring its financial strength and importance within PPC’s broader portfolio. An additional USD$6 million dividend has been declared, scheduled for payment in July, signalling confidence in the operation’s sustained profitability and cash generation.
The rise in EBITDA reflects improved operational efficiency and cost management, which enabled the company to maintain profitability despite lower sales. Strategic investments in clinker production, a key raw material in cement manufacturing enhanced self-sufficiency and reduced reliance on expensive imports, helping to mitigate the impact of cheaper imported cement.
Analysts suggest that the strong dividend pay-outs highlight PPC’s successful restructuring efforts in Zimbabwe, where the company has focused on enhancing operational efficiency and reducing debt. The Zimbabwean unit has emerged as a key revenue driver for PPC, compensating for softer performances in other regional markets.
Despite these positive results, PPC Zimbabwe continues to face intense competition from imported cement, particularly from regional producers, which has been eroding its market share.
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