PPC Expects Strong Earnings Growth In Six-Month Period

Pretoria Portland Cement (PPC) Company Limited, South Africa’s largest cement manufacturer, has announced positive expectations for its earnings in the six months leading up to September 30. The company projects a significant improvement in its headline earnings per share (HEPS), estimating a growth rate of 25.5% to 26.5%. This positive outlook is a stark contrast to the headline loss per share of 6 cents reported during the same period last year.

Furthermore, PPC anticipates that its earnings per share (EPS) will also experience a notable improvement. The company forecasts an increase of 21% to 25% from the loss of 30 cents per share reported in the previous financial year. PPC attributes this positive difference primarily to the strong performance of PPC Zimbabwe during the current period compared to the previous year, which had experienced an extended kiln shutdown.

Additionally, PPC Zimbabwe’s decision to change its functional currency from the Zimbabwean dollar to the US dollar has had a positive impact on the company’s financial performance. This change has resulted in the elimination of net monetary losses that arose due to hyperinflation accounting in the prior period.