PPC Africa expansion on schedule

28 January 2015

PPC reported positive cement sales in the first quarter and said construction is underway in Rwanda, Zimbabwe, Ethiopia and the DRC as it looks to continue its expansion into Africa.

“We are finalising the transaction for the company to increase its stake in Habesha Cement Company, in Ethiopia, to 51%,” said PPC.

“The civil and mechanical construction of the 600,000 tpa plant in Rwanda is complete with only electrical installation work to be finalised.”

PPC reported positive Q1 cement sales, supported by the consolidation of Safika Cement and growth in Zimbabwe and Botswana. The board is also considering a merger proposal from AfriSam.

Difficulties still continue in its South African operations due to weak economic growth, power shortages and increased competition.

The company anticipated that earnings per share for the first half of 2015 would reflect a year-on-year decline, attributed to last year’s once-off-tax credit combined with increased finance costs in the year.

“The board of directors of PPC advises that its headline earnings per share for the six months ending 31 March 2015, are expected to be between 25 and 45% lower than those for the comparable period ended 31 March 2014,” it said.

PPC will release interim results for the six months ending 31 March 2015 on 19 May.

By: Rutendo Nyamuda

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