PPC’s Zimbabwe operations have emerged as the standout performer in the group’s latest trading update, delivering strong volume growth, rising margins and a surge in cash generation that underpinned improved group earnings for the ten months to 31 January 2026.
The cement producer reported that Zimbabwe volumes grew by more than 22% during the period, supported by “sustained strong demand across the industrial and retail sectors.” Revenue increased by 24% in US dollar terms, while EBITDA rose by 28%, highlighting the strength of the business in a market benefiting from infrastructure activity and firm construction demand.
Margins in Zimbabwe also improved despite earlier operational disruptions, rising to 26.9% from 26% in the comparable period. The company said this recovery followed a prolonged maintenance shutdown in the first quarter, with performance normalising thereafter.
Crucially, Zimbabwe has become a major cash engine for the group. PPC reported a “robust step change” in free cash flow generation from the unit, enabling dividends of US$36 million to be declared and paid during the period, a sharp increase from US$8 million a year earlier. The Zimbabwe business remains debt-free and held US$7 million in cash at period end.
However, the company flagged a setback after the reporting period, with a mill gearbox failure at its Bulawayo plant in early February constraining cement milling capacity. PPC said mitigation measures are in place, but warned the incident will have a temporary negative impact on margins in February and March.
At group level, PPC’s performance continued to strengthen, supported largely by Zimbabwe. Revenue rose 4% year-on-year, while adjusted EBITDA increased by 22%, with margins improving to 19.4% from 16.6%.
“The increase in group revenue for the current period was driven mainly by the increase in PPC’s Zimbabwe operations,” the company said, noting that South Africa and Botswana revenues were broadly flat.
South Africa and Botswana delivered margin-led improvements despite muted demand, with EBITDA up 17% and margins expanding to 17.3%. PPC said its strategy continues to prioritise value and profitability over volume growth in those markets.
The broader turnaround strategy, branded “Awaken the Giant,” is gaining traction across the group, with management pointing to “ongoing and compounding benefits of disciplined execution.”
The plan focuses on operational efficiency, cost control, and cash generation, which have driven consistent improvement over the past two years. – TML