Luphert Chilwane

JSE-Listed cement manufacturer PPC is expecting to sustain sales improvements recorded towards the end of last year.

Speaking through its annual report released yesterday, PPC said the recent improvements in sales trends and other leading indicators for the South African cement industry were signs of encouragement. The group said it should enjoy good selling pricing momentum throughout this year.

PPC’s chairperson, Bheki Sibiya, said with global and regional business climates so uncertain, it was impossible to predict economic trends with any accuracy.

“However, we are encouraged that after almost four years of continuing decline, some leading indicators for cement demand, namely GDP and fixed capital formation, are now positive,” he said.

The group noted modest growth in fixed capital formation. “This is encouraging after more than two years of contraction.”

During the difficult times, Sibiya said PPC had become leaner and more customer-focused in its home territories, “while developing significant opportunities to extend our footprint in the rest of Africa”.

The company said it aimed to grow revenue generated outside South Africa to at least 40%-50% of the group’s revenue by 2016. The group generates about 18% its revenues from foreign operations.

“We expect cement demand in Zimbabwe to continue growing, albeit slower than 2011, but demand in Botswana to remain subdued on trimmed government spending,” said CEO Paul Stuiver.

Stuiver said although a long-term recovery in SA was due, it was still uncertain, given the global economic turmoil.

luphertc@thenewage.co.za