Wrap Text
Annual Consolidated Financial Statements for the year ended 31 March 2026, Cash Dividend Declaration
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 group")
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026,
CASH DIVIDEND DECLARATION
SNAPSHOT OF PERFORMANCE
Consolidated group
PPC Awaken the Giant: Second consecutive year of strong value unlock across all key metrics
- Revenue increased by 3,9% to R10 255 million (FY25: R9 871 million)
- EBITDA increased by 31% to R2 079 million (FY25: R1 593 million and FY24: R1 242 million)
- EBITDA margin increased by 4,2 percentage points to 20,3% (FY25: 16,1% and FY24: 12,3%)
- Net cash inflow before financing activities(1) increased by 23% to R1 295 million (FY25: R1 049 million
and FY24: R260 million)
- EPS increased by 75% to 56 cents (FY25: 32 cents) and HEPS increased by 25% to 50 cents (FY25:
40 cents)
- Pro forma HEPS increased by 45% to 58 cents (FY25: 40 cents) (2) and EPS increased by 100% to 64
cents (FY25: 32 cents)(2)
- ROIC(1) increased to 16,7% (FY25: 10,6% and FY24: 6,5%)
- Ordinary dividend of 30,2 cents per share has been declared (FY25: 17,6 cents and FY24: 13,7 cents
per share)
INDIVIDUAL BUSINESSES
South Africa Cement - Awaken the Giant continues transforming margins through rigorous cost
optimisation, value accretive sales and operational efficiencies
- Sales volumes increased 1,3%
- Revenue increased 1,8% to R6 251 million (FY25: R6 138 million)
- EBITDA increased 43% to R1 196 million (FY25: R837 million). Excluding the impact of the sale of the
non-core property, EBITDA increased 28% to R1 057 million
- EBITDA margin increased 5,5 percentage points to 19,1% (FY25: 13,6%) Excluding the impact of the
sale of the non-core property, margin increased 3,2 pp to 16,9%
- Net cash inflow before financing activities(1) increased by 26% to R1 038 million (FY25: R823 million)
- Dividend growth to R36 million (FY25: R30 million)
Zimbabwe Cement - Turnaround changes implemented driving results and capturing market growth
- Cement volumes increased 18,2%
- Revenue increased 14,3% to R3 567 million (FY25: R3 122 million)
- EBITDA increased 13% to R961 million (FY25: R849 million)
- EBITDA margins decreased 0,3% points to 26,9% (FY25: 27,2%). In H2, EBITDA margin recovered
and reached 30,9%
- Net cash inflow before financing activities increased to US$37,6 million (FY25: US$16,8 million)
- Significant increase in cash dividends paid to US$36 million (FY25: US$13 million)
(1) Before investment in RK3.
(2) Excluding realised and unrealised foreign exchange losses on RK3.
(3) EBITDA: Earnings before interest, tax, depreciation and amortisation.
(4) ROIC: return on invested capital.
(5) EPS: Earnings per share
(6) HEPS: Headline earnings per share
Matias Cardarelli, CEO, said:
"Two years ago we began a fundamental transformation of PPC. We deliberately reset legacy ways of
working, rebuilt our business foundations (people and processes), Introduced a clear awaken the giant
strategy, and refocused the business on competitiveness, accountability and execution. The results
delivered over this period have been exceptional and clearly demonstrate the scale of value that can be
unlocked in a well-run PPC. While the operating environment remains stagnant, our results improved
significantly across all metrics for a second consecutive year. EBITDA increased by 67%, from R1,2 billion
in FY24 to R2,1 billion in FY26. Even more remarkable was the eight percentage- point expansion in EBITDA
margin, from 12,3% to 20,3% establishing PPC as a structurally stronger and more competitive group. What
was once thought by many to be impossible, is being made real by the new PPC team.
This performance significantly exceeded expectations and has positioned PPC for its next step change,
anticipated in FY28, following the conclusion of the construction of the important new state-of- the-art
integrated plant in the Western Cape. This will coincide with the third year of our Awaken the Giant
turnaround process.
These results are driven solely by unlocking internal value by being efficient and assertive, and therefore
more competitive. Competitiveness across the footprint has been built by embedding a performance driven
culture, improving and strengthening core elements of the operations, supply chain and commercial
functions. During the year under review, South Africa cement was the main driver of results expansion, while
Zimbabwe registered a great performance in the second half of the year.
This performance reflects a clear improvement in group earnings quality, with materially stronger cash flow
generation of R1,6 billion and return on invested capital (ROIC) increasing from 6,5% in FY24 to 16,7% in
the current year.
The PPC team can be proud of these results and we must remain focused on the opportunities ahead.
Achieving metrics that once seemed out of reach is a powerful testament to the transformation underway,
and I am confident that further meaningful upside still lies ahead."
REVIEW OF OPERATIONS AND FINANCIAL RESULTS
PPC again delivered materially improved profitability and cash flow generation for the 12 months to
31 March 2026 (FY26 or the current year) compared to the 12 months to March 2025 (FY25 or the prior
year), building on the strong recovery achieved in the prior year and marking a second consecutive year of
turnaround-led performance improvement.
Group revenue increased 3,9% to R10 255 million (FY25: R9 871 million) primarily due to a 14,3% increase
in Zimbabwe's revenue with PPC's SA & Botswana group revenue marginally down by 0,4%.
The continued execution of PPC's turnaround strategy drove a second step-change in operational leverage
with cost of sales contained to a 2% increase at R8 065 million (FY25: R7 922 million). Administration and
other operating expenditure reduced materially by 19% to R763 million (FY25: R950 million), reflecting
structurally lower overheads, operating efficiencies and improved cost discipline.
Consequently, the trading profit improved by 50% to R1 473 million (FY25: R982 million). This followed a
59% increase in FY25 from R619 million at 31 March 2024 (FY24), demonstrating the compound impact of
the group's two-year turnaround.
Group earnings before interest, depreciation and amortisation (EBITDA) increased by 31% to R2 079 million
(FY25: R1 593 million) and EBITDA margins expanded materially to 20.3% (4,2 percentage points (pp)
increase). Excluding a R139 million profit on the sale of a non-core property by PPC Cement SA, group
EBITDA increased by 21,8%, margins improved to 18,9% (up 2,8 pp), demonstrating sustained underlying
operational strength in an unchanged market and economic environment. The group continues to make
decisive progress towards achieving its medium-term EBITDA margin target of above 20%.
Depreciation increased by R33 million in the current year, primarily due to right-of-use assets (ROU)
increasing by R137 million.
No impairments were required on any cash generating unit (CGU) in the current year. There was a reversal
of R4 million on an aggregates plant, which was brought back into production in the current year, offset by
a R1 million impairment of vehicles that are no longer in use.
Finance costs decreased to R82 million (FY25: R106 million), mainly due to lower interest reference rates
in South Africa and a full year of improved margin pricing on facilities that were re-priced in September 2024.
Interest income decreased to R56 million (FY25: R61 million).
Profit before tax increased substantially by 61% to R1 247 million (FY25: R774 million) and profit after tax
was R859 million (FY25: R466 million). The overall group effective tax rate was 31% (FY25: 40%).
The cash tax rate of the group, excluding once-off items, is at 31,7% (FY25: 32,6%), in line with internal
targets but higher than the statutory rate. This higher tax rate is mainly due to withholding taxes on dividends
received, non-deductibility of costs in PPC Ltd and non-deductibility of certain in-country costs in Zimbabwe.
Earnings per share (EPS) increased to 56 cents (FY25: 32 cents) in line with the substantial increase in
profit for the year. Headline earnings per share (HEPS) increased to 50 cents (FY25: 40 cents), mainly due
to the adjustments for the after tax impairment (reversal)/charges and the elimination of profit on the sale of
property, plant and equipment (PPE). The current period's results were impacted by foreign exchange
losses relating to the foreign exchange contracts (FECs) entered into by the group for purposes of hedging
the US dollar exposure associated with building the new cement plant in the Western Cape (RK3). A
decision was taken to de-risk PPC's balance sheet from rand weakness given the material dollar based
capital expenditure associated with RK3. In the current period, the rand strengthened against the US dollar
giving rise to realised and unrealised foreign exchange losses of R148 million on the FECs at 31 March
2026.
Pro forma financial information is disclosed on page 45 (refer to the Summarised Consolidated Financial
Statements), which adjusts both EPS and HEPS for realised and unrealised FEC losses. Pro forma EPS
amounts to 64 cents, an increase of 100% on the prior year and pro forma HEPS is 58 cents, an increase
of 45% on the prior year.
Cash generation remained a key focus area. The group's net cash inflow before financing activities adjusted
for RK3 expenditure increased by 23% to R1 295 million (FY25: R1 049 million), up substantially from R260
million in FY24.
Investment in PPE increased from R373 million in the prior year to R827 million in FY26, inclusive of RK3
expenditure. Dividends paid to shareholders amounted to R262 million (FY25: R703 million). The prior year
dividend included a special dividend to shareholders of R521 million, arising from a portion of the proceeds
received from the sale of a subsidiary.
Group gross debt increased to R550 million (FY25: R502 million), which includes R48 million drawn on the
trade facility secured for the financing of RK3. The group improved its cash position to R1 089 million (FY25:
R872 million).
Of the R1 089 million group cash holdings, R936 million is attributable to the SA & Botswana group. The SA
& Botswana group has total debt of R550 million and financial leases of R171 million leaving the overall SA
& Botswana group in a net cash position.
SA AND BOTSWANA CEMENT
Cement sales volumes in South Africa and Botswana, including clinker sales to Zimbabwe, were up 1,3%
when compared to the prior year. In South Africa, volumes remained stable overall with growth in the
industrial and construction segments offsetting softer retail sales, where competitive intensity remained
elevated. Clinker sales to Zimbabwe increased, particularly in the first half, while lower volumes in Botswana
partially offset this growth.
Notwithstanding muted growth in volumes, average selling price increases resulted in cement revenues
increasing year-on-year, before inter-segment eliminations, by 1,8% to R6 251 million (FY25: R6 138
million). The pricing environment remained challenging, but PPC's strategy of a value accretive sales mix
and optimal distribution channels was reflected in the margin expansion.
Coupled with quality revenue, competitiveness was enhanced with a structurally lower cost base with the
business making measurable progress for the second year.
Despite input cost inflation, total costs including depreciation decreased by 3,6%, driven by the incremental
benefits of the turnaround actions, notably significant savings in logistics costs, operational efficiencies and
overhead cost control.
EBITDA increased 42,9% to R1 196 million (FY25: R837 million) as margins expanded by 5,5 pp to 19,1%
(FY25: 13,6%). Excluding the R139 million profit on the sale of a non-core property, EBITDA increased by
26%, exceeding the 22% increase achieved in the prior year and margins would have expanded by 3,3 pp
to 16,9%, reflecting the compounded operational improvements from the 11,3% margin in FY24.
Strict capital allocation criteria contained overall capital expenditure, excluding RK3 capital expenditure, to
R196 million (FY25: R200 million).
RK3 capital expenditure and other items incurred during the current period are as follows:
Rm
Capital expenditure(a) 712
Realised FEC losses 70
Unrealised FEC losses 78
Advanced payments 224
Total 1 084
(a) Of the total capital expenditure, R48 million was funded through a new trade facility.
The board remains confident that the construction of RK3 will be completed in the last quarter of FY27 and
that the total costs will be within the board approved budget of R3,1 billion.
During the current period, PPC Cement SA enhanced its borrowing facilities for the purposes of securing
funding for the construction of RK3. A trade facility loan was secured and each payment by PPC's lender
against a letter of credit issued to Sinoma Overseas Development Co. Ltd (Sinoma) for the construction of
the new Western Cape plant, gets converted to rands at the relevant forward exchange contract rate (in
total R48 million at 31 March 2026). PPC has 12 months to repay each tranche of the trade loan. Foreign
exchange rate risk on the contract with Sinoma (US$134 million) has been fully hedged. The remaining
available balance for the trade facility is R1 126 million.
MATERIALS BUSINESS
Aggregates, readymix and ash
The materials division delivered a resilient performance, with revenue of R905 million (FY25: R949 million).
The performance reflected lower volumes in the readymix and ash businesses, while aggregates delivered
soft growth. The segmental EBITDA amounted to R11 million (FY25: R24 million), with the ash business
continuing to contribute positively at R15 million. While the second half was softer following a stronger first
half, the division maintained positive earnings overall.
ZIMBABWE
PPC's operation in Zimbabwe reported a 18% increase in sales volumes compared to the prior year. In H1
FY26, volumes increased by 25% over the comparable period. In H2, however, volumes only increased by
12% over the comparable period due to a gearbox breakdown at the Bulawayo factory on 3 February 2026,
affecting volumes in that region for two months.
Revenue for the current year increased by 14,3% to R3 567 million (FY25: R3 122 million), largely affected
by the strengthening of the rand dollar exchange rate over the year by 5,2%. In US dollar terms, revenue
increased by 20,5%. Turnaround initiatives gained traction in the current period, including, importantly, an
increase in own clinker production of 4% due to operational efficiencies. Strong demand supported higher
clinker imports to supplement production to meet market requirements. Overall, trading profit improved by
19,5% to R761 million (FY25: R637 million).
EBITDA increased to a record R961 million (FY25: R849 million) and by a strong 19,3% in US dollar terms.
EBITDA margin decreased marginally to 26,9% (FY25: 27,2%) recovering in the second half to 30,9%.
Zimbabwe remains debt-free and had unrestricted cash holdings at 31 March 2026 of R139 million (FY25:
R118 million). Some 99% of PPC Zimbabwe's cash is held in hard currencies. Zimbabwe declared and paid
US$36 million in dividends during the current year (FY25: US$13 million) – another record for PPC
Zimbabwe.
Capital expenditure increased to R167 million (FY25: R147 million). The key reason for the increased spend
was maintenance expenditure at the Colleen Bawn integrated plant and the purchase of an excavator for
the quarry.
DIVIDENDS
The board's approved distribution policy provides for the calculation of a distribution in two distinct parts
being:
- a distribution in an amount that would result in the target leverage range for the SA and Botswana
group being net debt at or below 1,3x – 1,5x the SA and Botswana EBITDA, before dividends from
Zimbabwe; plus
- a distribution of an amount up to the gross dividend received by PPC Ltd from PPC Zimbabwe.
The SA & Botswana group continued to generate strong cash flow in the current period. It also received its
share of the PPC Zimbabwe dividend, being R490 million, which excludes R105 million, which was
earmarked to secure a PPC Zimbabwe guarantee in South Africa. At 31 March 2026, the SA & Botswana
group is net cash positive.
The board considered the five-year budgets it approved in March 2026, which included the material capital
expenditure commitment for the new integrated plant in the Western Cape (RK3). Taking all the variables
into consideration, the board has approved the declaration of a cash dividend from the SA and Botswana
group of R36 million, being 20% higher than the FY25 dividend. It also approved a flow-through of almost
90%, being R433 million (FY25: R244 million) of the dividend received from PPC Zimbabwe. This
amounts to a gross dividend of R469 million (FY25: R274 million). The net debt to EBITDA of the SA and
Botswana group, before dividends from Zimbabwe is expected to be slightly below the target range of 1.3x
– 1.5x, but the board is comfortable that additional headroom is maintained across the SA and Botswana
facilities to de-risk the group pending the completion of the RK3 project.
Accordingly, an ordinary dividend of 30,2 cents per share (FY25: 17,6 cents per share) has been declared,
resulting in a gross cash outlay of R469 million.
CASH DIVIDEND
Based on the above, shareholders are advised that the board resolved on 5 June 2026 to declare a gross
cash dividend for the year ended 31 March 2026 of R469 million (FY25: R274 million). This equates to 30,2
cents per share for each of the shares in issue, subject to the applicable tax levied in terms of the Income
Tax Act (Act number 58 of 1962), as amended (dividend withholding tax).
The cash dividend has been declared from retained earnings. The dividend withholding tax rate is 20% and
a net cash dividend of 24,16 cents per share will be paid to those shareholders who are not exempt from
dividend withholding tax.
In accordance with the provisions of Strate, the electronic settlement and custody system used by JSE
Limited, the relevant dates for the cash dividend are as follows:
Last day to trade "cum cash dividend" Tuesday, 23 June 2026
Shares commence trading "ex cash dividend" Wednesday, 24 June 2026
Record date Friday, 26 June 2026
Payment date Monday, 29 June 2026
Shares may not be dematerialised or rematerialised between Wednesday, 24 June and Friday, 26 June
2026, both days inclusive.
Payments to certificated shareholders will be transferred electronically to their bank accounts on the
payment date. Shareholders who hold dematerialised shares will have their accounts at their CSDP or
stockbroker credited on Monday, 29 June 2026.
Taking into account the dividends received by the subsidiary that repurchased PPC Ltd shares in FY24, the
net cash outlay is R456 million.
The company's income tax reference number is 9460015606. The company has 1 553 764 624 shares in
issue as at the date of the declaration of the cash dividend.
In compliance with the Companies Act, the directors confirm and have resolved that the company will satisfy
the solvency and liquidity tests immediately after the payment of the cash dividend.
LEADERSHIP UPDATE
As announced on 18 March 2026, Brenda Berlin will retire as the group's CFO at the end of June 2026. A
comprehensive process for her replacement is well advanced, and an announcement will be made in due
course. The board thanks Brenda for her significant contribution to PPC over the last five and a half years
and wishes her well in her retirement.
STRATEGIC UPDATE AND OUTLOOK
PPC's long-term sustainability is firmly anchored in strong fundamentals, not the state of the broader
economic environment. PPC has consistently demonstrated over the last two years that profitability is driven
by competitiveness and is not dependent on topline expansion. Through disciplined execution, PPC has
structurally improved its margin profile, creating significant operating leverage. Although we remain
cautiously optimistic on a recovery of the South African operating environment in the near-term, PPC is
exceptionally well positioned to continue delivering on internal value and ready to convert incremental
volumes into higher earnings and returns when market conditions improve. In Zimbabwe, the operating
environment is anticipated to remain sound, supporting steady and sustainable growth.
The internal value unlock is being achieved through the disciplined execution of PPC's turnaround pillars –
competitiveness, cost and capital discipline, and strategic value accretive projects, including growth
orientated capital in Zimbabwe, where additional capacity ensures attractive returns and long-term value
creation.
The next meaningful step change in the group's financial performance is anticipated in FY28, following the
commissioning of RK3 and the benefits of the solar project in Zimbabwe. FY27 is pivotal, as PPC completes
the construction of RK3 and conservative gearing is planned for this year.
Going forward, dividends are expected to reflect the anticipated step-change in the group's operational
performance.
The group remains committed to consistent growth in the disclosed financial metrics, namely, EBITDA,
EBITDA margin, cash flow generation and return on invested capital (ROIC).
AUDIT OPINION
PPC's consolidated and separate annual financial statements for the year ended 31 March 2026 (2026 AFS)
have been audited by PwC, who expressed an unmodified audit opinion thereon in terms of the International
Standards on Auditing. A copy of the auditor's report on the 2026 AFS is available on PPC's
website: https://www.ppc.africa/investor-centre/reports.
The auditor's report does not necessarily report on all of the information contained in the 2026 AFS, including
the outlook. Investors and/or shareholders are therefore advised that, in order to obtain a full understanding
of the nature of the auditor's engagement, they should obtain a copy of the auditor's report together with the
accompanying financial information from PPC's website or registered office.
Copies of the 2026 AFS and the auditors unmodified audit opinion thereon are also available for inspection
at the Company's registered office (by appointment) and may be requested from the Company Secretary
Kevin Ross at (Kevin.Ross@ppc.co.za) at no charge, during office hours.
SHORT-FORM ANNOUNCEMENT
The information contained in this short-form announcement is extracted from the Company's summarised
consolidated financial statements for the year ended 31 March 2026 (summarised AFS) and the 2026 AFS,
both of which are available on PPC's website: https://www.ppc.africa/investor-centre/reports. The 2026 AFS
have been prepared in accordance with IFRS, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and the Financial Pronouncements as issued by the Financial Reporting
Standards Council and the requirements of the Companies Act and the JSE Listing Requirements.
This short-form announcement is the responsibility of the board of directors of PPC. The financial information
contained in this short-form announcement has been extracted from audited information but is not itself
audited.
As the information contained in this short-form announcement and the summarised AFS do not provide all
of the details, any investment decisions by investors and/or shareholders should be based on consideration
of the information in the 2026 AFS, as a whole, as published on PPC's website
(https://www.ppc.africa/investor-centre/reports) and via SENS through the JSE cloudlink:
https://senspdf.jse.co.za/documents/2026/jse/isse/PPC/FY2026.pdf.
RESULTS PRESENTATION
A live and recorded video webcast of the results presentation will be held today at 09:00 am and can be
accessed via this link: https://www.corpcam.com/PPC08062026
Dunkeld
8 June 2026
Registered office
First Floor, 5 Parks Boulevard, Oxford Parks, Dunkeld, Johannesburg, 2196, South Africa
(PO Box 787416, Sandton, 2146, South Africa)
Directors
PJ Moleketi (chair), SM Cardarelli* (CEO), B Berlin (CFO), N Gobodo, BM Hansen**, K Maphisa,
NL Mkhondo, MR Thompson
* Argentinian **Danish
Company secretary
KR Ross
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 08-06-2026 07:30:00
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