Iconic South African company ‘awakening the giant’

One of South Africa’s oldest companies has embarked on a turnaround plan that is already bearing fruit.

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

It has since grown its reach across sub-Saharan Africa, and its capacity has grown to around 11.5 million tonnes of cement products each year.

While the cement producer is still a giant in its industry, it has taken several hits 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.

This saw the company experience significant fluctuations in 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.

PPC released a trading statement on Thursday, 15 May 2025, outlining the strides it has made in the year ended 31 March 2025 by following this turnaround plan.

In this statement, the company informed shareholders that it expects significantly higher headline earnings per share (HEPS) from continuing operations, which are anticipated to be between 96% and 116% higher than the prior year. 

Its earnings per share (EPS) from continuing operations are also expected to increase substantially by between 417% and 436%. 

The company attributed these significant increases to the execution of its fundamental turnaround plan. 

“The improvement in the results is primarily due to a focus on cost control in the current period and the commencement of savings due to operational efficiencies,” it said. 

“This resulted in cost of goods sold decreasing in absolute terms across all the operational segments.”

“Administrative and other operating expenses were also strictly controlled and, again, reduced across all the segments compared to the prior period.”

PPC CEO Matias Cardarelli said the company’s ‘Awaken the Giant’ strategy is driving significant change across PPC, with clear benefits emerging. 

“This is a remarkable achievement, in a relatively short timeframe, which is already delivering enhanced stakeholder value through an improved operating and financial performance,” he said.

PPC’s complete financial statements for the year ended 31 March 2025 are expected to be released on or about 9 June 2025.