Revenue
R4,54 billion
(2014: R4,16 billion)
Revenue generated outside
of South Africa
28%
(2014: 26%)
Operating profit
Headline earnings per share
R781 million
60 cents
Earnings per share
Net asset book value
52 cents
365 cents
(2014: R884 million)
(2014: 94 cents)
COMMENTARY OVERVIEW
PPC’s total cement sales volumes improved by 5% for the period
under review. Group revenue increased by 9% to R4 541 million
(2014: R4 157 million) on the back of increased volumes in Zimbabwe,
Botswana and Rwanda as well as the consolidation of sales from Safika
Cement and Pronto Readymix. Cement selling prices declined in South
Africa and Botswana while limited growth was recorded in other
territories, however, the favourable impact of the devaluation of the
rand contributed positively to group revenue. Group revenue was
further supported by a 10% growth in revenue for the lime division.
On a like-for-like basis, excluding the consolidation of Safika Cement
and Pronto Readymix, group revenue would be 1% above last year at
R4 126 million (2014: R4 080 million).
Cost of sales of R3 206 million (2014: R2 793 million) was 15% higher
mainly due to the consolidation of Safika Cement and Pronto
Readymix. On a like-for-like basis, excluding these acquisitions, cost of
sales would be 6% above last year. Administration and other operating
expenditure increased by 15% to R554 million (2014: R480 million),
however, on a like-for-like basis, excluding the impact of acquired
overheads, administration and other operating expenditure would
have reflected a decline of 1% to R447 million (2014: R450 million).
EBITDA decreased by 4% to R1 123 million (2014: R1 174 million) and
operating profit, excluding the impact of empowerment transaction
IFRS 2 charges and restructuring costs, was down 11% when
compared to the previous reporting period at R789 million
(2014: R884 million) largely due to the weakness in the core South
African cement business. On a like-for-like basis, excluding the impact
of newly acquired businesses, EBITDA would have declined by 9% to
R1 050 million (2014: R1 152 million). During the review period both
group EBITDA and operating margins contracted; recording 25%
(2014: 28%) and 17% (2014: 21%) respectively.
Following an impairment assessment review, an impairment charge of
R44 million was recorded. This is related to accelerated depreciation of
the existing 100 000 ton per annum cement factory in CIMERWA that
will be decommissioned as the new factory comes online (R7 million).
Furthermore, goodwill of R22 million was impaired on the Pronto
Readymix transaction as well as R15 million of costs that were
capitalised on the Algeria transaction, due to the expiry of the
memorandum of understanding.
Cash generated from operations amounted to R1 140 million
(2014: R780 million). This year-on-year improvement is as a result of the
non-recurrence of once-off payments relating to the BBBEE interest rate
swaps liability of R113 million and restructuring costs of R64 million.
Capital investment during the half year amounted to R1 008 million
(2014: R872 million) with over R600 million being spent on the new
plants in Rwanda and the Democratic Republic of the Congo (DRC).
The group’s net debt position ended the half year at R6 308 million
(2014: R5 198 million), with debt to EBITDA ending below three times.
(2014: 96 cents per share)
Short form results
for the half year
ended 31 March 2015
(2014: 284 cents per share)
PPC Ltd
Cash generated from operations
(Incorporated in the Republic of South Africa)
Company registration number: 1892/000667/06
JSE code: PPC • JSE ISIN: ZAE000170049
ZSE code: PPC
R1,14 billion
(2014: R0,78 billion)
Taxation of R163 million (2014: R155 million) was favourably impacted
by a R27 million prior year adjustment following assessment of the
2013 year, bringing the effective tax rate to 36%. In the prior year, a
R70 million prior year’s tax over-provision was recorded which reduced
the prior year tax rate to 24%.
Headline earnings per share ended 38% lower at 60 cents per share
(2014: 96 cents per share). Normalised earnings per share of 61 cents
per share were 28% lower than the prior period while earnings per
share of 52 cents per share were down 45%.
SHORT FORM ANNOUNCEMENT
This short form announcement is the responsibility of the directors and
is a summarised version of the group’s unaudited interim results for
the half year ended 31 March 2015, and as such does not contain full
or complete details pertaining to the group’s results. Any investment
decisions should be based on the full announcement which has been
published on the Stock Exchange News Services (SENS) and can be
found on the group’s website www.ppc.co.za or can be inspected, at
no charge, at the registered office of the company or the offices of
the sponsor from 09:00 to 16:00 weekdays. Copies of the full
announcement may also be requested from the group company
secretary on 011 386 9000.
DIRECTORS
Non-executive directors
BL Sibiya (chairman), N Goldin, TJ Leaf-Wright, MP Malungani, T Mboweni,
SK Mhlarhi, B Modise, T Moyo*, CH Naude, PG Nelson, TDA Ross, D Ufitikirezi**
*Zimbabwean **Rwandan
Executive directors
DJ Castle (Chief executive officer),
MMT Ramano (Chief financial officer)
Group company secretary
JHDLR Snyman
Registered office
148 Katherine Street, Sandton, South Africa
PO Box 787416, Sandton, 2146, South Africa
Sponsor
Merrill Lynch South Africa, 138 West Street, Sandton, 2196
BL Sibiya, Chairman
DJ Castle, Chief executive officer
MMT Ramano, Chief financial officer
18 May 2015
DIVIDEND ANNOUNCEMENT
An interim ordinary gross dividend of 24 cents per share
(2014: 38 cents per share) has been declared payable in respect of
the half year ended 31 March 2015.
Important dates for both shareholders of PPC on the JSE and
Zimbabwe Stock Exchange are:
Shares trade ex dividend
Record date
Payment date
Monday, 8 June 2015
Friday, 12 June 2015
Monday, 15 June 2015
Further details on this dividend can be found on our website or by
contacting the group company secretary.
These results and other information are available on the PPC
website: www.ppc.co.za
BASTION GRAPHICS