Revenue climbs to R10.3bn as EBITDA surges 31%, margins hit 20.3%, and dividend jumps 72% for FY26
PPC Ltd has cemented its turnaround story, posting a second consecutive year of exceptional growth as its Awaken the Giant strategy reshapes the group into a leaner, more competitive force across Southern Africa.
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For the year ended 31 March 2026, PPC lifted revenue 3.9% to R10.255 billion, while EBITDA jumped 31% to R2.079 billion. Crucially, EBITDA margin expanded by 4.2 percentage points to 20.3%, taking the group past the key 20% threshold it set as a medium-term target. Net cash inflow before financing activities, excluding the RK3 investment, rose 23% to R1.295 billion, underscoring a sharp improvement in earnings quality.
Shareholders will feel the impact directly. Headline earnings per share climbed 25% to 50 cents, and the board declared an ordinary dividend of 30.2 cents per share, up 72% from 17.6 cents in FY25. Return on invested capital more than doubled from 6.5% in FY24 to 16.7% in FY26, reflecting tighter capital discipline and stronger asset utilisation.
The South African and Botswana cement business was the standout driver. Despite muted volume growth of 1.3%, revenue rose 1.8% to R6.251 billion as a value-focused sales mix and optimised distribution channels supported pricing. Rigorous cost optimisation and operational efficiencies saw total costs fall 3.6%. As a result, EBITDA surged 43% to R1.196 billion, and margin expanded 5.5 percentage points to 19.1%. Even stripping out a R139 million gain from a non-core property sale, the margin still improved 3.2 points to 16.9%, building on FY25’s gains from an 11.3% base in FY24.
Zimbabwe delivered its own milestone. Cement volumes leapt 18.2%, and revenue increased 14.3% to R3.567 billion. EBITDA hit a record R961 million, up 13%, while margin recovered to 30.9% in the second half after a gearbox outage at Bulawayo in February. The business remains debt-free and paid a record US$36 million in dividends to PPC, with cash generation climbing to US$37.6 million.
Chief Executive Officer, Matias Cardarelli said the results validate the two-year reset of PPC’s culture and operations. “We deliberately rebuilt our foundations, introduced a clear strategy, and refocused on competitiveness, accountability and execution. EBITDA has grown 67% since FY24, from R1.2 billion to R2.1 billion, and margin has expanded eight percentage points. This performance significantly exceeded expectations.”
Cardarelli noted that the gains were achieved in a stagnant market, driven purely by internal efficiencies rather than topline expansion. “Competitiveness across the footprint has been built by embedding a performance-driven culture and strengthening core operations, supply chain and commercial functions.”
PPC’s next major catalyst is the R3.1 billion state-of-the-art integrated plant in the Western Cape, known as RK3. Construction remains on schedule for completion in the last quarter of FY27, with foreign exchange exposure on the US$134 million Sinoma contract fully hedged. FY27 will be a pivotal build year, with conservative gearing planned as the project progresses.
Once commissioned, RK3 is expected to deliver the next step-change in financial performance in FY28, coinciding with year three of the Awaken the Giant turnaround. A solar project in Zimbabwe will add further benefits.
PPC stressed that its long-term sustainability does not hinge on broader economic growth. While management remains cautiously optimistic on a South African recovery, the group is “exceptionally well positioned to continue delivering internal value and ready to convert incremental volumes into higher earnings when market conditions improve.” Zimbabwe’s operating environment is expected to remain sound.
The board affirmed its commitment to consistent growth in EBITDA, margin, cash flow, and ROIC. Dividends are expected to reflect the anticipated operational step-change post-RK3.
With cash holdings of R1.089 billion and the SA & Botswana group in a net cash position, PPC enters its next phase structurally stronger, debt-light, and focused on execution. As Cardarelli put it: “The PPC team can be proud of these results. Achieving metrics that once seemed out of reach is a powerful testament to the transformation underway, and further meaningful upside still lies ahead.”
