info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
photo from Internet
Although the tading environment is very difficult, the cement manufacturer of Pretoria Portland Cement(PPC) reveal that PPC sales increase by 40%.
In its integrated report for the year ended March 31, 2018, PPC said revenue grew by 34% to R1 813 million (approximately $135 822.54) compared to R1 352 million ($101 286,31) achieved in the same period last year, supported by volumes which increased by over 40% from last year.
In Zimbabwe, PPC operates three plants, including the new $82 million plant in Harare, which was commissioned last year and produces 700 000 tonnes of cement per annum. The other two plants are in Bulawayo and Colleen Bawn near Gwanda, with combined annual production of 700 000 tonnes, bringing the total annual production of the company to 1,4 million tonnnes of cement per year.
“The Zimbabwean economy continued to face severe liquidity constraints, with very low foreign currency reserves, impeding payments for offshore goods and services. Despite the difficult trading environment, PPC Zimbabwe grew volumes over 40% from last year, setting new sales records,” the group said.
“Volume growth was supported by a strong presence in the north of the country after the successful commissioning of the Harare mill and launch of innovative products. Route-to-market initiatives were extremely effective in supporting the ramp-up of the Harare mill.”
Zimbabwe held its harmonised elections on July 30 which were controversially won by Zanu PF and its leader Emmerson Mnangagwa. The election results have, however, been disputed by the opposition MDC Alliance leader, Nelson Chamisa who is this week expected to file a court challenge claiming massive electoral rigging.
“With the government’s support to improve capacity utilisation of the manufacturing sector, PPC Zimbabwe expects to grow volumes into neighbouring countries in 2019.”
PPC said the national cement demand remained well below production capacity and regional cement prices were significantly lower than those in Zimbabwe.PPC also said the government had raised concerns about high cement prices as it pushed its low-cost housing agenda.
Earnings before interest, tax, depreciation and amortisation grew 31% to R572 million (2017: R438 million), with margins maintained at 32%.
To mitigate current liquidity constraints, PPC said it significantly reduced its forex requirements by settling a power tariff account for its clinker-producing facility in-country.
