JSE-listed PPC expects its basic earnings a share and headline earnings a share for the year ended March 31 to have decreased by more than 20% compared with the basic earnings a share of 16c and the headline earnings a share of 20c reported for the prior financial year.

These movements take into account impairments of property, plant and equipment, expected credit losses and other fair value adjustments.

The general economic environment and the Covid-19 pandemic will have a material impact on these adjustments, which are being finalised, the company says.

PPC will provide further guidance once reasonable certainty has been established on the range.

The company expects to publish its group’s financial results for the period on or about August 31.

OPERATIONAL UPDATE FOR MAY AND JUNE

Meanwhile, PPC says its cement operations ramped up in May post the lifting of the Level 5 restrictions imposed at the end of March across most of the jurisdictions in which the group operates.

South African cement sales volumes were around 30% to 35% below that of May 2019.

In PPC International, the May cement sales volumes were less than 5% below the same period in 2019, mainly driven by strong sales volumes in Rwanda.

The company notes that the demand recovery was strong in June, as the cement sales volumes in South Africa grew by double digits compared with June 2019.

This recovery is mostly driven by the absence of imports which has given an opportunity for local producers like PPC South Africa to grow, it states.

In line with earlier communication and action plans, PPC considers it crucial for the sustainability of the local cement industry that substandard cement and imports are properly addressed.

Cement sales volumes in PPC International also showed year-on-year growth in the month of June.

On the back of the improved sales volumes and the various cost and cash preservation measures, the cash flows for the last two months have shown a positive trajectory.

PPC says it continues to have the support of its lenders to navigate the impact of the health and economic crisis.

“The discussions with the lenders around the announced capital restructuring continue in a constructive climate. More information on this important project will be shared at the announcement of the full-year results,” PPC notes.