This article first appeared on GuruFocus .
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Group Revenue:Increased by 3.9% to ZAR10.3 billion.
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EBITDA:Increased by 31% to ZAR2.1 billion in FY26, up from ZAR1.2 billion in FY24.
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EBITDA Margin:Expanded by 4 percentage points to 20.3% in FY26.
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Cash Flow from Operations:Increased by 24% to ZAR1.3 billion in FY26.
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Return on Invested Capital (ROIC):Increased to 16.7%, up from 6.5% in FY24.
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Trading Profit:Increased by 50% to ZAR1,473 million.
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Pro Forma HEPS:Increased by 45%.
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Dividend:ZAR0.302 per share, a 72% increase from the prior year.
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South Africa & Botswana Group EBITDA Growth:42.9% increase, excluding non-core asset sale impact, EBITDA increased by 26.3%.
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Zimbabwe EBITDA:Increased by 19.1%, with margins flat at 27%.
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Capital Expenditure:ZAR413 million on maintenance CapEx, excluding RK3 spend.
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RK3 Project Expenditure:Total expenditure for the year is ZAR1,084 million.
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Net Finance Costs:Reduced from ZAR106 million to ZAR82 million.
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Effective Tax Rate:31%.
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South Africa Cement EBITDA Growth:55% over two years, with a margin expansion to 16.9% in FY26.
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Zimbabwe Revenue Growth:Increased by 16%.
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Zimbabwe Cash Holdings:$8.1 million at year-end.
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Warning! GuruFocus has detected 3 Warning Sign with BOM:533217.
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Release Date: June 08, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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PPC Ltd ( PPCLY ) reported a significant increase in EBITDA, growing by 31% in FY26 to ZAR2.1 billion, demonstrating strong financial performance.
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The company achieved an EBITDA margin expansion to 20.3%, reflecting improved competitiveness and operational leverage.
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Cash generation from operations increased significantly, reaching ZAR1.3 billion in FY26, indicating strong cash flow management.
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PPC Ltd ( PPCLY ) declared a dividend of ZAR0.302 per share, a 72% increase from the previous year, showcasing confidence in its financial health.
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The company has made substantial progress in its 'Awaken the Giant' turnaround strategy, leading to consistent execution and value creation.
Negative Points
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The South African cement market faces challenges from increased imports, particularly from Vietnam and Mozambique, impacting local competitiveness.
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Substandard cement circulation remains a significant issue in the South African construction industry, posing risks to quality and safety.
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Higher diesel prices are affecting logistics and distribution costs, potentially impacting margins despite efforts to pass on costs.
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The company acknowledges internal inefficiencies, with room for improvement in operational execution to enhance financial results further.
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PPC Ltd ( PPCLY ) faces regulatory challenges in ensuring a level playing field against imported cement, which could affect future market dynamics.
Q & A Highlights
Q: Is there still a market premium for the PPC Surebuild brand? And are you holding market share for this product? A: Of course, to both questions.
Q: You've mentioned that imported cement still remains a threat to competitiveness in the SA market. Is PPC of the opinion that some regulatory intervention is needed? Or do you believe the focus on higher-quality sales might eventually alleviate such pressures? A: We believe that imported cement is a problem for the South African cement market, not so much for PPC, but for some of our competitors. Imported cement does not compete against our high-quality products, but it is a significant issue for South Africa. The increase in imported cement from Vietnam and Mozambique poses a risk, and we have been engaging with the government to address this.
Q: Have you and the industry seen any improvement in the circulation of substandard cement in the SA construction industry? Or does it remain a problem? A: It remains a big problem. Substandard cement is coming from some blenders who reduce the clinker content to non-compliant levels, making it dangerous for construction. We have expressed our concerns to the government.
Q: Zimbabwe seems like a real growth platform. Could you provide color on what type of projects in the region is driving this? A: Various infrastructure projects are happening in Zimbabwe, including housing, public infrastructure, and roads. We are seeing consistent growth across all segments.
Q: What impact is higher diesel pricing having on the group post-March year-end? Are you able to pass through the majority of the logistics cost? Or are you expecting a negative margin impact? A: We are seeing an impact on logistics and distribution costs. We have passed some of the cost increases through pricing, and we are working on optimizing efficiency to balance the cost inflation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
