November 20, 2019 / 6:33 AM / 24 days ago

South African cement firm PPC's earnings hit by Zimbabwe inflation

Nov 20 (Reuters) - South African cement company PPC Ltd reported a lower first-half headline earnings per share on Wednesday, hurt by a weaker Zimbabwean dollar and said it had started a review of its operations.

The company’s results were affected by the application of hyperinflationary accounting by PPC Zimbabwe, which it said complicated comparability at a group level.

Zimbabwe has suspended publication of annual inflation data until February, but economic analysts say the figure reached 440% last month. Many expect the country will miss its target of single-digit levels by the end of the first quarter of 2020.

“PPC has initiated a comprehensive strategic review and certain initiatives necessary for sustainable value creation are underway,” the company said.

PPC reported headline earnings per share (EPS) of 6 South African cents for the six months ended Sept. 30, compared to 21 South African cents a year earlier.

Headline EPS is the main profit measure for South African companies and removes certain one-off items.

The company’s group revenue for the six months fell 12% to 4.95 billion rand ($335.03 million) and there was a 17% decline in overall cement volumes.

$1 = 14.7748 rand Reporting by Tanishaa Nadkar in Bengaluru; Editing by Shounak Dasgupta

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below