PPC reports 94% plunge in headline earnings due to COVID-19

PPC, a leading cement maker, has reported a significant 94% plunge in headline earnings per share for the year ending March. The company's CEO, Roland van Wijnen, spoke to CNBC Africa about the challenges faced by the group, particularly in Zimbabwe, and the strategies being implemented to navigate through the impacts of COVID-19. Despite the obstacles, such as hyperinflation and currency depreciation, PPC has managed to generate cash and increase sales. Van Wijnen expressed cautious optimism about the future, acknowledging the uncertainty brought about by the ongoing third wave of the pandemic. The CEO highlighted the importance of understanding the accounting elements that influence the headline earnings per share (HEPS) and emphasized that certain non-cash items need to be considered for a more accurate assessment of the figures. He also shed light on PPC's long-term plans in Zimbabwe, mentioning the company's strategic position in the region and its revenue sources in multiple currencies. With regards to sales, Van Wijnen pointed out the resilience demonstrated by the business amid challenging economic conditions, noting a shift in demand patterns and the gradual normalization of retail and infrastructure projects. On the financial front, PPC has made significant progress in reducing debt levels, with plans in place to divest non-core assets to further improve financial stability. The company's focus on cost competitiveness and operational efficiency is expected to drive margin expansion and enhance shareholder value. Looking ahead, PPC aims to leverage its cash flow to support growth initiatives, diversify its product portfolio with low-carbon building materials, and contribute to the global climate change agenda. Van Wijnen reassured stakeholders of the company's commitment to sustainable growth and value creation, positioning PPC for a resilient future in the construction industry.