PPC Forecasts EPS Surge to 25-30 Cents Amid Strong Zimbabwe Performance

  • PPC Ltd. expects EPS to increase to 25-30 cents, up from a loss of 43 cents.
  • PPC Zimbabwe's strong performance and currency change to USD significantly boosted the group's earnings.
  • Disposal of CIMERWA and restated figures show PPC's continuing operations' EPS improving to 4.0-8.0 cents.

PPC Ltd has released its trading statement for the fiscal year ended March 31, 2024. The company is finalizing its annual results, indicating substantial improvements compared to the prior period.

Improved Earnings Guidance

PPC Ltd. anticipates a significant increase in earnings per share (EPS) and headline earnings per share (HEPS). The company expects its EPS and HEPS to differ by at least 20% from the previous year.

EPS and HEPS Projections

The group projects its EPS to range between 25.0 to 30.0 cents, compared to a loss of 43 cents in the prior period. For HEPS, the expected range is 27.0 to 28.5 cents, an improvement from a loss of 9 cents last year.

MetricCurrent Period (cents)Prior Period (cents)
Group EPS25.0 to 30.0(43)
Group HEPS27.0 to 28.5(9)
Continuing Operations EPS4.0 to 8.0(21)
Continuing Operations HEPS16.5 to 20.0(20)

Drivers of Performance

The strong performance by PPC Zimbabwe is a major factor in the improved earnings. PPC Zimbabwe’s performance was notably better compared to the prior period, which saw an extended kiln shutdown.

Currency Impact

PPC Zimbabwe’s change in functional currency from the Zimbabwean dollar to the United States dollar positively impacted results. This change eliminated net monetary losses of R131 million caused by hyperinflation accounting in the prior period.

Disposal of CIMERWA Stake

On January 25, 2024, PPC disposed of its 51% shareholding in CIMERWA. Consequently, CIMERWA’s results from April 1, 2023, to January 25, 2024, are shown as discontinued operations.

Restated Prior Period Figures

The prior period figures have been restated to exclude CIMERWA’s results, which are now disclosed separately as discontinued operations.

Continued Operations Performance

For continuing operations, the company expects an EPS range of 4.0 to 8.0 cents, improving from a loss of 21 cents. HEPS for continuing operations is expected to be between 16.5 to 20.0 cents, up from a loss of 20 cents.

Conclusion

PPC Ltd.’s trading statement reflects a promising outlook for the company. Improved performance in Zimbabwe and strategic changes have driven substantial earnings growth. The upcoming financial statements will offer a comprehensive view of PPC’s performance and future prospects.