PPC FY net profit down 9% to R849m

By Andries Mahlangu

Embattled construction company PPC has incurred a 9% decline in net profit to R849m in the year to September due to the effects of the industrial action on the platinum belt earlier this year.

Group revenue was up 9% to R9bn mainly as a result of the consolidation of Safika Cement and Pronto Readymix as well as the full-year effect of Cimerwa.

PPC‚ whose board faces possible replacement on December 8 after the much disputed resignation of CE Ketso Gordhan‚ said cement sales volumes improved by just 2% from the year-earlier period.

Headline earnings per share (HEPS) were flat at 179c‚ well below INet BFA consensus forecast of 216.7c.

A final dividend of 76c per share was declared‚ bringing the full-year dividend to 114c per share.

The company said the acquisition of Safika Cement was already beginning to bear fruit as its cement sales volumes in SA decreased by only 2%‚ while on a like-for-like basis with the exclusion of Safika Cement volumes were down 7%.

Executive chairman Bheki Sibiya said: “PPC’s rest of Africa expansion strategy is progressing well with construction under way in four countries.”

The company said it was on track to achieve 40% of revenue from the rest of Africa by 2017.

Get commercial property news by email

Free alerts when we publish — pick a focus or get everything, unsubscribe in one click. Subscribe »