PPC’s Full-Year Profit Rises 10% on Sales Growth in South Africa

PPC Ltd. (PPC), the largest cement maker in South Africa, said full-year profit climbed 10 percent after sales increased in its home market and neighboring Zimbabwe.

Net income rose to 931 million ($92 million) in the 12 months through September from 846 million rand a year earlier, the Johannesburg-based company said in a statement today. Earnings per share excluding one-time items climbed 16 percent to 2.15 rand, beating the 2.04 rand median estimate of three analysts surveyed by Bloomberg. PPC declared a final dividend of 1.18 rand a share.

“Cement sales in our home territories, particularly Zimbabwe and South Africa, have shown good growth,” Ketso Gordhan, chief executive officer of PPC, said in the statement.

PPC is expanding in Africa through acquisitions to offset tougher competition in its domestic market. The company will have three new plants operating in the Democratic Republic of Congo, Rwanda and Ethiopia by the end of 2015, boosting capacity by more than a third to as much as 11 million metric tons.

“Due to modest growth, the domestic trading environment remains tough and highly competitive,” PPC said. “We are on track to meet our strategic objective of generating 40 percent of our revenues from the rest of the continent by 2017.”

PPC has dropped 6.7 percent this year, making the stock the worst performer on the seven-member FTSE/JSE Africa Construction & Building Materials Index, which gained 7.4 percent.

To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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