Company news in brief
PPC sees decline in SA volumesSA's biggest cement maker PPC saw local volumes decline almost 5% in the first four months of its 2025 year.
Despite recent relief from interest rates and improved confidence, it's still not seeing clear evidence of large-scale infrastructure projects or retail developments, the group said.
Cement sales volumes in SA and Botswana decreased by 4.6% in the four months to end-July, but price hikes of 5.5% allowed revenue in this market to grow by 1.6%, the group said in a trading update.
Core profit fell 10.4% as fixed costs increased by more than inflation, and the SA cement business is the key focus area as it looks to improve profitability and cash generation at its businesses.
It added it views the local outlook as "subdued."
Valued at about R6.3 billion on the JSE, PPC has been pursuing turnaround efforts in recent years that involved selling its Rest of Africa businesses to focus on its core operations in southern Africa, where it says it has a competitive advantage.
The group had reached about a R800 million deal to sell its Rwandan business in its 2024 year and recently paid a special dividend.
A strong performance in Zimbabwe had also helped boost it in 2024, when it paid an ordinary dividend after a hiatus of almost a decade.
Zimbabwe contributed 30% to group revenue in the four months to end-July, following a revenue fall of 4.5%, with the group reporting that in response to significant increases in electricity tariffs it had increased prices in US dollars by 4.5%. Imports continue to increase in Zimbabwe, adding to the pressure, the group said. - Fin24
Gemfields expects to double its debt
Ruby and emerald miner Gemfields is pushing ahead with a strategic focus on investing in future growth, with net debt anticipated to grow from US$44 million currently to exceed US$100 million (R1.7 billion) at certain points next year.
The precious gemstone group, owner of the Fabergé brand and emerald and ruby mines in Zambia and Mozambique, respectively, is working to balance available cash and considerable investments at its African operations.
A US$70-million spend on a secondary processing plant at the Montepuez ruby mine in Mozambique – which is critical to unlock a considerable stockpile and bring to market additional size and colour variations of rubies – remains within budget and on track to be completed by the end of June next year.
A processing plant upgrade at the Kagem mine in Zambia has recently been completed.
As various debt arrangements are in the works to fund the investment drive, Gemfields CFO David Lovett warned during an investor presentation that the group's net debt position will exceed US$100 million at points during the course of next year.
"We're excited to see the investments, particularly in Mozambique [and] being able to move the group forward over the next couple of years," Lovett said during a results presentation to investors on Friday. - Fin24
Trellidor reports strong UK performance
Trellidor, which makes and sells shutters for decoration and security, reported on Friday that a strong UK performance offset SA pressure in its year to end-June, when revenue picked up 12.6% to R565.8 million.
Operating profit for Trellidor more than tripled, while headline earnings jumped to R34.4 million from about R4 million.
Net debt was reduced from R146.7 million to R115.7 million, but the group, valued at about R205 million on the JSE, opted not to declare a dividend. - Fin24
Momentum ups payout ratio
Insurance and investment group Momentum announced on Friday it was upping its payout ratio, and therefore its dividend, for its year to end-June, with accounting changes prompting a downward revision in earnings.
The Centurion-headquartered group's normalised headline earnings jumped 27% to R4.4 billion, though before restatements, earnings in the prior year had been R5.1 billion. Momentum, valued at about R41.5 billion on the JSE, upped its dividend for the year by 4% to 125c per share, a payout ratio of 40%, up from 35% in 2023, and representing about R1.7 billion.
It also approved another R1-billion share buyback over six months, having spent the same amount in the whole of 2024.
Headline earnings climbed 32% due to the lower number of shares in issue, while the group said it was pleased all of its units gained market share, though margins on new business slipped. - Fin24