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Trading Statement
PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code:PPC002 ISIN: ZAG000111212
JSE Code: PPC ISIN: ZAE000170049
("PPC" or the "Company" or “Group”)
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 will differ
by more than 20% from those of the previous corresponding period. PPC is
finalising its results for the year ended 31 March 2018 which will be released
on 18 June 2018.
Net profit attributable to PPC shareholders is expected to increase by 55% -
65%, compared with the R93 million achieved for prior comparable period.
PPC group EBITDA from operations is expected to decline by 5% - 12% compared
with the previous period. Group EBITDA has been negatively impacted by costs
related to corporate action, restructuring and separation costs which was
communicated previously. Excluding this impact and the fluctuation in
exchange rates, group EBITDA would have increased by 0% - 3%. In addition,
the plant in DRC was commissioned during the last quarter of calendar year
2017, as well as the plant in Ethiopia in the first quarter of the 2018
calendar year. Their results for financial year 2018 have reduced net profit
as they are in a ramp up phase.
In the results to March 2018, the DRC market continued to face uncertainty
driven by political instability, lower cement demand and subdued selling
prices. Furthermore, the competitive landscape remains challenging due to
production capacity that is higher than market demand. The delayed elections
have created uncertainty in the economy and most of the infrastructural
projects have been put on hold or they are slow to come to market. As a result
of these factors, management undertook an impairment assessment.
Following the impairment assessment review, the recoverable amount of the DRC
operation was considered lower than the current carrying value and an
impairment of R166 million (US$14 million) was charged against property,
plant and equipment for the year ended March 2018.
Basic earnings per share is expected to increase by between 20% and 30%
(between 9.6 cents and 10.4 cents). Headline earnings per share is expected
to increase by between 110% and 120% (between 14.7 cents and 15.4 cents) for
the year ended 31 March 2018, compared to the previously reported period
ended 31 March 2017.
Summary of earnings:
Earnings in cents Year ended Year ended % change
March 2018 March 2017
Basic EPS 9.6 – 10.4 8 20 – 30%
Basic HEPS 14.7 – 15.4 7 110 - 120%
WANS (millions) 1,510 1,137 33%
The group net debt levels reduced significantly from that reported at the
group’s interim results released in November 2017. Furthermore, the group has
also generated positive free cash flows after investing activities, compared
with a significant outflow in the prior comparable period.
The information in this trading statement has not been reviewed or reported
on by the Company’s external auditors.
15 June 2018
Sponsor
Merrill Lynch South Africa (Pty) Limited
PPC:
Anashrin Pillay
Head Investor Relations
Tel: +27 (0) 11 386 9000
Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
T +27 11 447 3030 | M +27 71 605 4294
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