Half Year 2026 PPC Ltd Earnings Call Transcript
Key Points
- PPC Ltd (PPCLY) reported a 24% increase in EBITDA to ZAR983 million, with an EBITDA margin expansion of 2.6 percentage points to 18.3%.
- Free cash flow from operations surged by 32% to ZAR661 million, indicating strong cash generation capabilities.
- The company declared record dividends for Zimbabwe, reaching USD20 million, up from USD4 million in the previous period.
- Return on invested capital (ROIC) improved significantly to 13.4% from 7.1%, reflecting a focus on shareholder returns.
- PPC Ltd (PPCLY) has successfully implemented its 'Awaken the Giant' turnaround strategy, leading to sustainable growth and operational improvements.
- The planned kiln maintenance shutdown in Q1 increased reliance on imported clinker, temporarily impacting margins.
- The ash segment experienced a 42% decline in volumes, affecting the overall performance of the materials business.
- The company faced unrealized foreign exchange losses on hedging instruments, impacting financial results.
- There is a potential risk from increased competition if Dangote proceeds with building capacity in Zimbabwe.
- The South African market remains challenging with low growth and intense competition, which could pressure future pricing.
Good morning, everyone. It is a pleasure to share PPC's progress at the halfway point of our FY26. Results to date reflect not only continued progress, but also building on the foundations cemented last year, driving sustainable growth and operational improvement.
I want to extend a warm welcome to all of our investors, our Board, employees and members of the media as well as other stakeholders who have joined us today. Your ongoing support and confidence in PPC remain critical as we advance our turnaround journey.
Brenda Berlin, our CFO, and I will share the first half FY26 financial results, key highlights of the year and progress on our strategy implementation. I will start with the business highlight, followed by Brenda's review of the financials. Then I will return for the business review and outlook. We will have time for your questions at the end of the presentation.
Last year, we presented a new direction for PPC, a fundamental shift in the group's strategy, culture and focus areas. Steadily and consistently, we have
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