PPC Reports 31% Rise In Group EBITDA To R2.08bn And Margin Expansion To 20.3%

Group Ebitda increased 31% to R2.08bn, while Ebitda margins expanded to 20.3%, reflecting improved operational efficiency and profitability. Earnings per share rose 75% to 56 cents, underscoring the success of the cement producer's turnaround strategy and strengthening its position as a leading supplier of cement and related products in Southern Africa.

This follows the first two years of the implementation of PPC’s Awaken the Giant turnaround strategy. In this period, Ebitda increased by 62% from R1,2bn in FY 2024 to R2,1bn for FY 2026. Equally remarkable, is the eight-percentage point expansion achieved in the Ebitda margin - from 12,3% in FY 2024 to 20,3% in FY 2026.

PPC delivered materially improved profitability and cash-flow generation over FY 2026, compared to FY 2025. South Africa cement was the main driver of results expansion, while Zimbabwe registered a great performance in the second half of the year.

The strong performance led to a dividend declared in respect of FY 2026 amounting to R469m (FY 2025: R274m) - a 72% increase.

PPC chief executive officer, Matias Cardarelli. commented, “This performance is significantly ahead of expectations and has positioned PPC for its next step change, anticipated in the 2028 financial year, following the conclusion of the construction of the new state-of-the-art integrated cement plant in the Western Cape."

Turnaround gains momentum

Group revenue increased 3,9% to R10,255m (FY 2025: R9,871m) essentially due to a 14,3% increase in Zimbabwe’s revenue with PPC’s SA & Botswana group revenue marginally down by 0,4%.

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 in the context of muted demand.

This reinforces the need for a focus on both value accretive sales and a structurally lower cost base. This drove measurable progress for a second consecutive year. In South Africa, Ebitda increased 43% to R1,196m (FY 2025: R837m), and Ebitda margin increased 5,5 percentage points to 19.1% (FY 2025: 13.6%).

PPC Zimbabwe reported a 18% increase in sales volumes compared to the prior year, reflecting the benefit of its national footprint and turnaround actions in a growing demand market. The Zimbabwean operations’ Ebitda increased by 19% to USD56m in the period (FY 2025: USD47m) with the Ebitda margin lower by 0,3% points to 26.9% (FY 2025: 27.2%). In the second half of the financial year, the Ebitda margin recovered and reached 30,9%.

The continued execution of the turnaround strategy drove a second step-change in operational leverage with the group’s cost of sales contained to a 2% increase at R8,065m (FY 2025: R7,922m). This was the main driver of the trading profit improvement of 50% to R1,473m (FY 2025: R982m). This followed a 59% increase in FY 2025 from the R619m in FY 2024, demonstrating the compound impact of the group’s two-year turnaround.

Cash generation remains a clear strength of the business and a core pillar of PPC’s value-creation strategy.

The group’s net cash inflow before financing activities, adjusted for the new cement plant being built in the Western Cape (RK3), increased by 23% in FY 2026 to R1,295m (FY 2025: R1,049m) up significantly from R260m in FY 2024.

Strategic update and outlook

Cardarelli concluded, “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, and will continue creating significant operating leverage, remaining cautiously optimistic on a recovery of the South African operating environment in the near-term. PPC is exceptionally well positioned to continue delivering internal value and is 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. These include the RK3 project in the Western Cape and an anticipated new integrated plant in Zimbabwe.