By Chiedza Kowo
CEMENT producer PPC Africa suffered a significant dent to its profitability because of the 75% depreciation of the Zimbabwean greenback towards the South African rand, the corporate has revealed.
In its summarised consolidated monetary statements, PPC revealed that the hyperinflationary atmosphere within the nation had affected the corporate’s general efficiency
“The influence of hyperinflation accounting and the 75% depreciation of the Zimbabwean greenback towards the South African rand lowered PPC Zimbabwe’s contribution to the group’s monetary efficiency,” the corporate stated.
“In gentle of the prevailing financial circumstances affecting the worth of the Zimbabwean greenback, PPC Zimbabwe is concentrated on money preservation and maximising US greenback EBITDA [earnings before interest, taxes, depreciation, and amortisation].
“The enterprise is financially self-sufficient and declared and paid a money dividend to PPC of US$4,Four million in December 2020.
“Subsequent to the year-end, an additional dividend of US$2,6 million was paid to PPC”
The cement manufacturing entity stated it had acquired an additional US$11,2 million throughout FY 2021 from the Reserve Financial institution of Zimbabwe because the central financial institution settles the debt from legacy funds.
It stated regardless of the difficult financial atmosphere and the influence of COVID-19-related lockdown restrictions on gross sales, PPC Zimbabwe cement volumes elevated by roughly 10%, supported by ongoing infrastructure tasks.
“PPC applied value will increase in native foreign money to offset enter price inflation and the devaluation of the native foreign money.”
It stated regardless of the restoration in cement demand in most of its markets, PPC was conscious of the prevailing uncertainties across the COVID-19 pandemic and its influence on financial exercise.
“PPC will stay centered on enhancing price competitiveness and money technology.
“It’s going to take the required strategic and operational measures to make sure that it may proceed to serve its clients, shield its staff, and implement strategic initiatives to make sure monetary sustainability by means of all demand cycles.”
- Comply with Chiedza on Twitter @KowoChiedza
Do you’ve gotten a coronavirus story? You’ll be able to electronic mail us on: