Zimbabwe operation lifts PPC
Regional cement producer, PPC, has issued a profit warning for the year ended March 31, 2024 supported by strong performance by the Zimbabwe operation.
The company, currently suspended from trading on the Zimbabwe Stock Exchange (ZSE) since June 2020, issued a profit warning in line with listing requirements on the Johannesburg Stock Exchange (JSE), where it is also listed.
“Shareholders are advised that PPC is satisfied that a reasonable degree of certainty exists that the expected earnings per share (EPS) and headline earning per share (HEPS) for the current period, will differ by at least 20 percent from that for the previous corresponding period, being the year ended 31 March 2023 (the prior period) and that a trading statement is required in terms of the JSE Limited Listings Requirements,” said PPC in a cautionary announcement.
“This difference is primarily due to the current period EPS and HEPS numbers being impacted by a strong performance by PPC Zimbabwe in the current period compared to the prior period in which it had an extended kiln shutdown. In addition, in the current period, PPC Zimbabwe changed its functional currency from the Zimbabwean dollar to the United States dollar and this also had a positive impact given the elimination of net monetary losses of R131 million arising in the prior period due to hyperinflation accounting,” said the group.
As reported in the operational update on 27 March 2024, due to the disposal by PPC of its 51 percent shareholding in the Rwanda operation CIMERWA on 25 January 2024, CIMERWA’s results for the period 1 April 2023 to 25 January 2024 will be shown as discontinued operations.
The prior period comparative figures have accordingly been represented to exclude CIMERWA’s results and to disclose its results separately as discontinued operations.-ebusinessweekly
