Pride Mzarabani
HARARE – PPC Limited reported a 22% surge in cement sales for its Zimbabwean operations during the four-month period ending July 31, 2025, compared to the same period last year. This impressive growth is not only attributed to the strategic 30% tariff on imported cement, implemented in May 2025 but also to a broader boom in Zimbabwe’s real estate sector and an uptick in large-scale infrastructure projects.
With major developmental projects underway ranging from housing developments to the construction of shopping malls and office complexes PPC’s volume growth is indicative of this broader economic recovery.
However, despite the strong sales figures PPC Zimbabwe faced operational challenges in the first two months of the period following an extended shutdown at its Colleen Bawn plant part of a planned three-year Plant Performance Improvement Plan (PPIP). The shutdown was aimed at positioning the plant to produce higher volumes of locally sourced clinker reducing reliance on costly imports.
While this strategic move is likely to yield long-term benefits by improving cost efficiency and supply chain stability it temporarily dented profitability. PPC’s EBITDA margin in Zimbabwe dropped sharply to 15.3% from 29.0% during the same period last year reflecting both the shutdown costs and higher clinker import expenses. However, margins rebounded post-shutdown and the company reported stronger-than-expected cash generation despite the temporary pressure on earnings.
At the group level, PPC’s revenue increased by 4%, driven by solid growth across South Africa, Botswana, and Zimbabwe. Group EBITDA also showed positive momentum, with the margin rising to 15.9% from 13.7% in the comparable period. This growth is largely attributable to PPC’s Zimbabwean operations where EBITDA margins are expected to continue improving as the plant’s performance stabilizes and as the broader cement market in Zimbabwe remains buoyed by ongoing construction demand.
The impact of the Zimbabwean results is particularly notable given the slight margin compression in South Africa where PPC has faced a challenging operating environment, with cost inflation and competitive pressures impacting profitability. Despite this, PPC’s cash flow remains resilient driven by positive operational performance in both South Africa and Botswana, as well as the dividend inflows from its Zimbabwe operations.
Looking ahead, PPC is focusing on capitalizing on its improved operational efficiency and enhanced commercial strategy under the “Awaken the Giant” initiative. With construction activity in Zimbabwe likely to remain strong the company is well-positioned to meet growing demand in the market.
PPC’s ongoing efforts to optimize its cost structure and improve plant efficiency will be critical for maintaining healthy margins, particularly as the company invests heavily in its integrated cement plant project (RK3) in the Western Cape. The RK3 project which remains on schedule is set to bolster PPC’s production capacity in South Africa, and while capital expenditures remain high, the company’s gearing projections remain unchanged.
