PPC LIMITED - Trading Statement

Trading Statement

PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE 000170049
("PPC" or the "Company")

OPERATIONAL UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS PERIOD ENDED 30
SEPTEMBER 2016

OPERATIONAL UPDATE

The group achieved reasonable cement volume growth, however weakness in
selling prices has led to a marginal increase in gross profit. The expected
earnings before interest, taxation, depreciation and amortisation for the
period will approximate that recorded for the six months ended 31 March
2016.

TRADING STATEMENT

In terms of the Listing Requirements of the JSE Limited, companies are
required to publish a Trading Statement as soon as they become reasonably
certain that the financial results for the period to be reported on next
will differ by more than 20% from those of the previous corresponding
period.

The board of directors of PPC advises that its headline earnings per share
for the six months ended 30 September 2016 is expected to be between 65%
and 85% lower than headline earnings as reported for the six months period
ended 31 March 2016, which translates to expected headline earnings of
between 19 cents and 8 cents per share.

Furthermore, basic earnings per share for the six months ended 30 September
2016 is expected to be between 70% and 90% lower than the basic earnings as
reported for the six months period ended 31 March 2016, which translates to
expected basic earnings of between 21 cents and 7 cents per share.

The main contributor to the decline relates to high financing costs
incurred for the raising fee and related interest charges for the R2
billion liquidity and guarantee facility which was secured in June 2016 to
redeem the outstanding PPC notes. The non-recurrence of the exceptional
profit of R117 million made on the sale of non-core assets in the prior
period has also contributed to the period on period decline in basic
earnings per share. Furthermore, the devaluation of local currencies, in
particular the DRC and Rwanda, against the US dollar has led to revaluation
losses being recognised on foreign currency denominated receivables and
borrowings in the current reporting period.

The information contained in this trading statement has not been reviewed
or reported on by the company’s external auditors.

PPC changed its year-end to 31 March and will release its reviewed interim
results for the six month period ended 30 September 2016 on 16 November
2016.


31 October 2016
Sponsor
Merrill Lynch South Africa (Pty) Limited

PPC:
Azola Lowan
Tel: +27 (0) 11 386 9000
Azola.Lowan@ppc.co.za

Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 (0) 71 605 4294
Louise.Fortuin@instinctif.com
 

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