PPC turns free cash flow positive as turnaround continues

PPC SENS statement:

Salient Features (Continuing Operations)

Group revenue: R8,938m (March 2020:R8,671m)

Group EBITDA: R1,598m (March 2020: R1,381m)

Earnings per share: 65 cents (March 2020: 43 cents loss)

Headline earnings per share: 3 cents (March 2020: 54 cents)

Group free cash flow: R649m (March 2020: R289m outflow)

The group did not declare a dividend in the current or previous period.

Roland van Wijnen, CEO, said:

My gratitude goes to all my colleagues at PPC. They have worked tirelessly under very stringent health and safety protocols to keep PPC going and sustain our purpose of empowering people to experience a better quality of life.

Despite the difficult trading conditions in most of our markets, our businesses have benefited from a recovery in cement demand, resulting in improved financial performance. The strategic repositioning of PPC as a leading cementitious player is progressing well, and we will redouble our efforts in the new financial year.

We also achieved significant milestones in our capital restructuring and refinancing project, which remains a priority for PPC. So far, we have concluded an agreement with PPC Barnet’s lenders, which terminates their right to recourse to PPC. We signed agreements for the sale of PPC Lime and our aggregates business in Botswana. We also agreed with our South African lending partners to defer the equity capital raise in South Africa from March 2021 to September 2021. We continue to engage with our lenders to find the most economically efficient way to recapitalise the South African business.

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