Full Year 2025 PPC Ltd Earnings Call Transcript
Key Points
- PPC Ltd (PPCLY) reported a 28% growth in EBITDA, reaching ZAR 1.59 billion, with a significant improvement in EBITDA margin by almost 4 percentage points to 16.1%.
- Free cash flow from continuous operations expanded significantly from ZAR 260 million in the previous year to over ZAR 1 billion in FY '25.
- The company resumed ordinary dividend payments from the South Africa business, which had not been declared since 2016.
- PPC Ltd (PPCLY) has made significant strides in cost management, with a 14% reduction in logistics costs per ton per kilometer.
- The company has implemented a strategic turnaround plan, showing early signs of success with operational improvements and a refocus on core business drivers.
- PPC Ltd (PPCLY) faced a decline in group revenue, which was marginally down compared to the previous year.
- The South Africa and Botswana group experienced a 1.3% decline in volume, despite price increases.
- The company is operating in a competitive market with international cement groups entering with strong investments in technology and cost efficiency.
- PPC Ltd (PPCLY) is still in the early stages of its turnaround plan, indicating that the process will take time and may not be linear.
- The company faces challenges from imported cement, which remains a significant issue due to the high cost of cement production in South Africa.
Good morning, everyone. It is an exciting day for PPC, particularly for me, to be here presenting the outcome of my first full financial year as CEO of PPC. I want to extend a warm welcome to our investors, our Board, employees and members of the media as well as other stakeholders who have joined us today. Your support and interest in PPC are greatly appreciated.
Brenda Berlin, our CFO; and I look forward to sharing our FY '25 financial results. Key highlights of the year and the progress to date on our strategic plan implementation started one year ago. My introduction will cover the key highlights of the year, and then Brenda will take us through the group financial results. I will follow with the business review and close with some looking-ahead comments.
In my initial interaction with the market one year ago, I laid down the need for the beginning of a new chapter for the PPC group. We needed a fundamental reset of the organization, a new direction, a new strategy. We received a company in a very poor operational, commercial and
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