PPC projects 8% sales volumes growth
Regional cement maker, PPC Limited, expects sales volumes to increase by between 4% and 8% with Zimbabwe and Rwanda being the key contributors.
In a trading update, PPC said Zimbabwe’s operations will record a double digit volume growth.
“PPC expects total group cement sales volumes for the twelve months ending March 31, 2022 to increase by 4%-8% year-on-year, with double digit volume growth in Zimbabwe and Rwanda.”
However, this projection is much lower than that of the cement manufacturer’s previous financial period which had cement sales volumes at 11% – 15%.
“PPC Zimbabwe continues to trade well and ahead of expectations. For the twelve months ending 31 March 2022, PPC Zimbabwe’s cement sales volumes are expected to increase by 21%-25% year-on-year,” PPC said.
PPC said increased retail demand, increased sales to concrete product manufacturers, and support from Government-funded projects would push growth in Zimbabwe.
In the materials category the company reported a recovery in its readymix and aggregates businesses, due to an increase in construction activity within the regions it operates in. Thus, PPC expects sales volumes for the two materials to increase, upping revenues for the division.
“For the twelve months ending 31 March 2022, PPC expects ready mix volumes to increase by 5%-10% year-on-year, while aggregates volumes are expected to increase by 10%-14% year-on-year,” PPC said.
PPC, however, expects its fly ash sales volumes to decrease by 14%- 18% due to an unusually strong performance in the prior year due to lack of slag in the market.
Overall the company has a positive outlook for the following financial year with the company saying: “PPC is well-positioned to benefit from growing cement demand in the territories it operates. The group remains focused on improving operational efficiencies to ensure financial sustainability through all demand cycles.”