130-year-old company in South Africa going from zero to hero

PPC has continued to go from strength to strength in the first half of its 2026 financial year, recording a notable rise in earnings and profit.

Cement manufacturing giant PPC is one of South Africa’s oldest companies, having been incorporated in 1892 as the country’s first cement manufacturer.

Since then, it has expanded its reach across sub-Saharan Africa, and its capacity has increased to around 11.5 million tonnes of cement products annually.

While the cement producer remains a giant in its industry, it has suffered several setbacks over the past few years.

Sluggish economic growth, cheap cement imports, and South Africa’s struggling manufacturing industry have significantly impacted the company’s performance.

These factors hit the company’s revenue and profitability between 2019 and 2023, with a notable decline in 2021.

Therefore, the company embarked on a turnaround strategy called Awaken the Giant, which has started to bear fruit.

On Monday, 24 November, PPC released its interim results for the six months through September 2025, which revealed a strong performance.

PPC’s revenue from contracts with customers increased by 6.2% to R5.38 billion, while its EBITDA grew by 23.5% to R983 million, attaining a margin of 18.3%.

The company’s basic earnings per share increased by 13.64% to 25 cents per share, while its profit for the six-month period shot up by 15.72% to R368 million.

CEO Matias Cardarelli attributed these strong results to the company’s Awaken the Giant turnaround, which he said is not only gaining momentum but redefining PPC’s trajectory.

“Our strategy is delivering tangible results: competitiveness has strengthened, profitability and cash flow are increasing consistently, and disciplined capital allocation is translating into superior returns,” he said. 

“At 30 September 2025, our 12-month return on invested capital reached 13.4%, exceeding previous guidance for FY26 to FY27. Initial progress is well ahead of the plan, and there is more to come.”

He explained that the group’s strong first-half results were mainly driven by the performance of PPC’s South African cement business, which saw EBITDA grow by 30.5% to R569 million.

The company’s Zimbabwean operations also saw a strong recovery in the second quarter of the year following a planned shutdown in the first quarter, with EBITDA up 11% to R446 million.

“Building on last year’s foundations, the plant performance improvement plan, additional distribution and logistics efficiencies and commercial opportunities to enhance contribution margin will continue to drive value creation and results growth,” Cardarelli said.

“We are already seeing that a more efficient PPC is increasingly able to compete in its markets.”

PPC did not declare an interim dividend, but said it would assess a dividend to shareholders at the full year-end.