Cement company PPC said on Thursday its Zimbabwe business had remained resilient despite the economic challenges in the country over the last 12 months.
It said PPC Zimbabwe had kept its pricing in line with inflationary increases in the economy and demand remained strong, while EBITDA (earnings before interest, taxes, depreciation, and amortization) margins remained within the previously guided range of 30% to 35% for the financial year ending 2019.
"PPC Zimbabwe continues to follow a rigorous approach to liquidity management and cash preservation as highlighted in our update on 5 February," the Johannesburg headquartered group said.
Initiatives included 90 percent of input costs being sourced locally, increasing exports to neighbouring countries, continuing with clinker imports from South Africa and shares purchases of PPC on the Zimbabwe Stock Exchange.
PPC said the introduction of a formalised floating foreign exchange announced by Zimbabwe’s central bank governor John Mangudya last month was a positive development toward curbing the high inflation and excessive premiums created by parallel exchange rates.
The exchange market should result in a more efficient allocation of foreign currency, removing the distortions that were impacting the market, and facilitate the repatriation of cash in the medium to long term, it said.
"PPC Zimbabwe’s maintains a good relationship with the Zimbabwean monetary authorities and will persist in engaging the regulators and monitoring developments," the company added.
"The business continues to implement strategies to protect its financial position and utilise regulatory channels to repatriate funds where possible."