SOUTH African cement producer PPC Limited received a record US$36 million dividend from its Zimbabwean subsidiary during the year ended March 31, 2026, nearly tripling the US$13 million paid in the previous financial year amid strong sales growth and improved profitability.
The record payout highlights the growing importance of PPC Zimbabwe to the group’s overall performance, with the local operation emerging as one of the strongest contributors to revenue and earnings at a time when growth in South Africa and Botswana remained subdued.
PPC Zimbabwe recorded an 18% increase in sales volumes during the review period, driving a 14,3% rise in revenue and helping lift group revenue by 3,9% to ZAR10,25 billion.
The group said Zimbabwe remained financially strong, maintaining a debt-free balance sheet and robust hard-currency reserves.
“Zimbabwe remains debt-free and has unrestricted cash holdings at 31 March 2026 of ZAR139 million (FY25: ZAR118 million). Some 99% of PPC Zimbabwe’s cash is held in hard currencies,” PPC said in the group’s annual financial statement for the period ended March 31, 2026.
“Zimbabwe declared and paid US$36 million in dividends during the current year (FY25: US$13 million), another record for PPC Zimbabwe.”
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Revenue at PPC Zimbabwe increased by 14,2% to ZAR3,56 billion during the period, supported by strong demand and higher production volumes.
The company said part of the increase was influenced by a 5,2% strengthening of the rand against the US dollar during the year.
“In US dollar terms, revenue increased by 20,5%. Turnaround initiatives gained traction in the current period, including, importantly, an increase in own clinker production of 4% due to operational efficiencies,” PPC said.
“Strong demand supported higher clinker imports to supplement production to meet market requirements. Overall, trading profit improved by 19,5% to ZAR761 million (FY25: ZAR637 million).”
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased to a record ZAR961 million, from a prior year comparative of ZAR849 million and 19,3% in US dollar terms.
Although the EBITDA margin eased slightly to 26,9% from 27,2% in the previous year, profitability improved significantly during the second half of the financial year, with margins recovering to 30,9%.
The strong cash generation from Zimbabwe enabled PPC to increase shareholder returns while continuing to invest heavily in strategic expansion projects.
The group is currently developing the ZAR3,1 billion RK3 integrated cement plant in South Africa’s Western Cape province, one of its largest capital projects in recent years.
“The board considered the five-year budgets it approved in March 2026, which included the material capital expenditure commitment for the new integrated plant in the Western Cape (RK3),” PPC said.
Taking into account future funding requirements and cash generation prospects, the board approved a cash dividend from the South Africa and Botswana operations of ZAR36 million, representing a 20% increase on the previous year’s payout.
In addition, PPC approved the distribution of nearly 90% of the dividend received from Zimbabwe, amounting to ZAR433 million compared to ZAR244 million in the prior year.
“This amounts to a gross dividend of ZAR469 million (FY25: R274 million),” PPC said.
PPC added that its South Africa and Botswana operations remained financially stable, with debt levels expected to stay slightly below the group’s target leverage range despite the ongoing RK3 investment programme.