PPC remains cautious despite rising sales

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PPC remains cautious despite rising sales

Published Date: 2020-11-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

PPC remains cautious despite rising sales

The cement producer says it is on track to test investor appetite for the recapitalisation of its international operations by year end.

PPC says a recovery in cement sales that began in June has continued, led by retail demand. It has also started to experience the positive impact of increased infrastructure spending, which it hopes will continued once retail sales return to normalised levels.

In an operational update, the cement producer said cement sales volumes at PPC South Africa and Botswana increased by between 20% and 25% over the three months to end September from a year earlier. In October, these were 15% to 20% higher. Its international operations, which were less affected by Covid-19, showed double-digit growth in the June to September period.

Meanwhile, it said it continued to make positive progress with a restructuring and refinancing project, with finalisation of revised facilities with its SA lenders expected this month. Restructuring negotiations with the lenders to its PPC Barnet business in the Democratic Republic of Congo (DRC) were progressing constructively on the basis of the term sheet and the de facto debt standstill agreed in September. It said it was on track to test investor appetite regarding the recapitalisation of its international operations before the end of December.

The company said it would provide a more comprehensive update when it released its interim results for the six months to end-September early in December.

Its shares rose 3.5% yesterday. The update was released shortly before the close of trade.





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