A PPC cement truck being loaded. Image: File
Share in cement maker PPC leapt over 4% after it said it expects its headline earnings per share (Heps) for continuing operations to rise by up to 18% for the six months ended September 30, 2024.
In a trading update on Monday it said that Heps for continuing operations are forecast between 20.0 and 23.5 cents from the previous corresponding period of 20 cents.
Earnings per share for continuing operations are anticipated to range between 20.0 and 23.5 cents, a hike of between 11% to 31% over the prior period’s 18 cents.
The group said this improvement largely stems from reduced administration and operating costs within the South Africa and Botswana segments, countering weaker performance in Zimbabwe.
Additionally, PPC said it benefited from higher investment income due to larger average cash balances and the absence of a one-off R53 million impairment that impacted the prior period. However, a higher effective tax rate of 33%, up from 25%, tempered some of these gains.
The company said it would disclose full performance details in its upcoming unaudited financial report, scheduled for release on 18 November 2024.
The shares at 1.06pm were up 4.46% at R3.98. In the past six months the shares trended 18.69% higher.
PPC recently started a process to improve profitability and returns on assets, a process that had followed the stabilisation of the balance sheet, and sale of non-strategic assets in recent years.
The turnaround is focused on people, organisational culture, processes, as well as industrial and supply chain optimisation, and it aims to enhance the competitive position of the group. The positive effects were expected to become evident in the next financial year.
BUSINESS REPORT