Rwandan cement maker Cimerwa Ltd aided in cushioning Pretoria Portland Cement revenue in the six months ending March 31.
The JSE-listed company has a 51% stake in Cimerwa Ltd. Pretoria Portland Cement’s financial results indicate its bases in Zimbabwe, Botswana and South Africa were depressed as a result of narrowing market and declining cement prices in southern Africa.
“The recently commissioned plant in Rwanda added almost R200 million ($13.4 million) to Pretoria Portland Cement revenue. This reflects the importance of an increasingly diverse operating base,” a statement from Pretoria Portland Cement said.
The group’s revenue before tax, interest, depreciation and amortization rose by 2% to $72 million. Net profit mainly attributable to shareholders increased by 35% to $24 million from $18 million, boosted by the sale of non-core assets.
The firm’s South African operation’s revenues before taxes, interest, depreciation and amortisation dropped by nine per cent to $41 million. Uganda-based Tororo Cement and Hima Cement and Tanzania’s Kilimanjaro Cement are among regional companies hoping to reap from Rwanda’s growing cement demand.
PPC invested $165 million to boost Cimerwa’s capacity from 100,000 tonnes to 600,000 tonnes per year. The plan is reach 80% utilisation of capacity. Which means production should attain 600,000 tpa of the 720,000 tpa installed capacity.
