PPC reports 50% increase in HEPS
PPC, the cement producing giant has released its interim results today, PPC currently boasts a market cap of just under R20 billion. PPC shares have gained 6.02% on the year, and have a seen erratic movement over the last 3 years. Today PPC is trading at a PE ratio of 18.41, with a dividend yield 4.73%. Markets were made aware of the expected spike in headline earnings per share and earnings per share, resulting in a bounce in PPC shares, which subsequently stabilised, it will be interesting to see how markets respond to today's results.
- Normalised earnings increased by 4% despite additional expansion costs
- Total cement sales volumes improved by 2% for period under review
- Interim dividend of 38 cents per share
- Group revenue increased by 9% to R4.157 billion (2013: R3.812 billion)
- Headline EPS ended 50% higher at 96 cents per share (2013: 64 cents per share)
- Cost of sales of R2.793 billion was 9% higher (2013: R2.569 billion) in line with revenue growth
- Construction of new cement plants underway in Rwanda, the Democratic Republic of the Congo, Zimbabwe and Ethiopia
- Successful completion of the Safika Cement acquisition
- PPC remains optimistic that cement sales volumes will improve in operating geographies
- At end of calendar 2014, PPC will begin commissioning its 600,000 ton per annum plant in Rwanda
Ketso Gordhan, CEO, said: "PPC's group cement sales ended 2% higher during this reporting period. Improvements in export sales and the consolidation of sales from our Rwanda operation and newly acquired Safika Cement business were partly offset by declining sales volumes in South Africa and Botswana. Our rest of Africa expansion strategy is progressing well."
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