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Oliver Kazunga, Senior Business Reporter
SOUTH Africa’s cement manufacturer, Pretoria Portland Cement (PPC), has recorded a 40 percent increase in profit in the half-year ended June 30, 2017.

The improved results were largely attributed to the company’s robust performance in Zimbabwe and Rwanda and lower finance costs.

Last year, the group’s local unit, PPC Zimbabwe commissioned a $75 million cement plant in Harare.

Locally, the company has cement manufacturing plants at Cement side in Bulawayo and Colleen Bawn in Matabeleland South.

In a latest trading statement for the half year period under review, PPC said its headline earnings per share likely rose by between 30 and 40 percent in the six months ended September 30, 2017.

“PPC is finalising its interim results for the six months ended September 30, 2017. The group’s operating cash flow is expected to increase by three percent to six percent compared with the previous period, while net profit attributable to shareholders is expected to increase by 180 percent to 200 percent,” said the company.

The group’s net debt levels have remained in-line with that reported in the operating update announcement of September 26, 2017.

“And the group remains adequately capitalised to meet its debt repayment obligations.

“Furthermore, debt restructuring negotiations with the funders both in respect of South Africa debt and the Democratic Republic of Congo funding agreements are progressing well.

“Furthermore, the group’s ability generate strong cash flows is evidenced by cash and cash equivalents rising between 50 percent and 60 percent on the prior comparable period,” said PPC.

The cement producer was expected to release its interim results for the period ended September 30, 2017 on November 23.

“Basic earnings per share are expected to rise by between 45 percent and 60 percent (between 19 cents and 21 cents) and headline earnings per share are expected to rise by between 30 percent and 40 percent (between 18 cents and 20 cents) for the six months ended 30 September 2017, compared to the previously reported comparable period last year,” said the cement producer.— @okazunga.