PPC Share Price JSE Extends Uptrend to 8-Year High after 72% Dividend Hike and Record EBITDA Growth Amid Successful Turnaround
PPC delivered another year of strong financial growth, with higher earnings, expanding margins, and a larger dividend as its turnaround strategy continued to improve profitability.
Quick overview
- PPC reported a strong financial performance for the year ended 31 March 2026, with group revenue increasing by 3.9% to ZAR10.26 billion and EBITDA climbing 31% to ZAR2.08 billion.
- Earnings per share surged 75% to 56 cents, and the company declared a dividend of 30.2 cents per share, a 72% increase from the previous year.
- The company's turnaround strategy, 'Awaken the Giant,' has led to improved operational efficiency and profitability, with trading profit rising 50% to ZAR1.47 billion.
- PPC continues to invest in long-term growth, with a ZAR3.1 billion investment in a new integrated cement plant expected to enhance production capacity.
PPC delivered another year of strong financial growth, with higher earnings, expanding margins, and a larger dividend as its turnaround strategy continued to improve profitability.
PPC Delivers Another Strong Year
South African cement producer PPC reported a second consecutive year of improved financial performance for the year ended 31 March 2026, driven by stronger profitability, steady revenue growth, and improved operational efficiency.
Group revenue increased 3.9% to ZAR10.26 billion, while EBITDA climbed 31% to ZAR2.08 billion. EBITDA margin expanded to 20.3%, up from 16.1% a year earlier, reflecting better cost control and improved operating performance.
Earnings per share surged 75% to 56 cents, and the company declared an ordinary dividend of 30.2 cents per share, a 72% increase from the previous year’s 17.6 cents.
PPCJ Chart Weekly – MAs Keeping the Price Supported
Turnaround Strategy Continues to Deliver
PPC attributed the stronger results to continued execution of its “Awaken the Giant” turnaround strategy, which has focused on improving efficiency, strengthening profitability, and generating cash.
Group trading profit rose 50% to ZAR1.47 billion, while net cash inflow before financing activities increased 23% to ZAR1.30 billion, highlighting the company’s improving financial position.
Chief Executive Officer Matias Cardarelli said the business had become “structurally stronger and more competitive” despite operating in a challenging market environment.
Regional Operations Support Growth
The company’s South Africa and Botswana division recorded a 1.3% increase in cement sales volumes, including clinker exports to Zimbabwe.
Revenue from the division rose 1.8% to ZAR6.25 billion, while EBITDA jumped 43% to ZAR1.20 billion, lifting margins to 19.1%.
PPC Zimbabwe also delivered a strong performance, with cement sales volumes rising 18.2% and revenue increasing 14.3% to ZAR3.57 billion. EBITDA reached a record ZAR961 million, supported by healthy construction demand and improved clinker production.
Investment Supports Future Expansion
Looking ahead, PPC continues to invest in long-term growth. Construction of its new RK3 integrated cement plant in the Western Cape remains on track for completion in the final quarter of FY2026/27.
The company has approved a total investment of ZAR3.1 billion for the project, which is expected to enhance production capacity and contribute to earnings growth from FY2027/28 onward.
With stronger profitability, higher cash generation, and continued investment in new capacity, PPC appears well positioned to build on the momentum of its successful turnaround strategy.
Key financial highlights from the most recent full-year reporting:
-
- Earnings Per Share (EPS): Increased 75% to 56 cents, up from 32 cents the previous year.
- EBITDA: Rose 31% year-over-year to ZAR2.08 billion.
- EBITDA Margin: Expanded by 4.2 percentage points to 20.3%.
- Dividend: Declared an ordinary dividend of 30.2 cents per share, marking a 72% increase from the previous year.
- South Africa and Botswana: Revenue in this division rose to ZAR6.25 billion (up 1.8%), with EBITDA surging 43% to ZAR1.20 billion. The region benefited heavily from a 24% reduction in logistics costs.
- Zimbabwe: Remained a major growth engine, reporting an 18.2% increase in cement sales volumes and a 14.3% revenue jump to ZAR3.57 billion.
- Strategic Shift: Management shifted focus from pure volume growth to prioritizing plant efficiency and overhead discipline.
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