PPC Southern African markets revenue up 2%
Joining CNBC Africa for more on the company’s performance is Roland van Wijnen, CEO at PPC.
Mon, 20 Nov 2023 16:34:24 GMT
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AI Generated Summary
- The company has seen a 2% increase in revenue in the Southern African markets, driven by strong performance in Zimbabwe and cost containment strategies in South Africa and Botswana.
- Strategic decision to focus on core markets in Southern Africa and sell off operations in Rwanda has led to increased margins and profitability for PPC.
- PPC is committed to sustainability and reducing its carbon footprint through innovative practices, such as using waste instead of coal and reducing clinker content in cement production.
PPC, a leading cement producer in Southern Africa, has seen a 2% increase in revenue in the region despite the challenging economic environment. Roland van Wijnen, the CEO of PPC, highlighted the company's successful recovery journey in the core South African markets during a recent interview with CNBC Africa. While South Africa and Botswana continue to face muted demand due to a weak economy and low fixed capital formation, Zimbabwe has shown strong demand, leading to increased margins and strong cash generation for PPC. The company's ability to contain costs and improve operational efficiencies has been key to its success in the region. Furthermore, the strategic decision to sell off operations in Rwanda has allowed PPC to focus on its core markets in Southern Africa, leading to a more streamlined and profitable business model. Despite challenges in the macroeconomic environment and government spending constraints, PPC remains optimistic about the future, citing ongoing infrastructure projects and potential opportunities in water infrastructure and housing development. Looking ahead, PPC is focused on sustainable practices and reducing its carbon footprint by implementing innovative solutions such as using waste instead of coal and reducing clinker content in cement production. The company has developed a clear roadmap for sustainability goals from 2025 onwards, demonstrating its commitment to environmental responsibility. As PPC continues to evolve and adapt to a changing world, the company remains open to potential acquisitions and expansion opportunities in the future. Reflecting on his tenure as CEO, Roland van Wijnen expressed pride in the resilience and dedication of Team PPC during challenging times, including navigating a large debt burden and the impact of the COVID-19 pandemic. Despite the obstacles faced, PPC has emerged stronger and more resilient under his leadership. Van Wijnen is confident in handing over a solid foundation to his successor, emphasizing the importance of teamwork and perseverance in achieving success.
