PPC 2026INTEGRATEDREPORT
INTRODUCTION
Contents
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1.Introduction
3
Our FY26 Integrated Report
Refers to additional information available on PPC's website at https://www.ppc.africa
Refers to information in this IR
REPORT NAVIGATION:
The following navigation icons appear throughout this Integrated Report for ease of reference:
Welcome to the PPC FY26 Integrated Report. This report is our primary communication to stakeholders and provides a comprehensive and balanced view of our strategy, governance, performance and value creation during the year under review. The report is complemented by our FY26 Sustainability Report and FY26 Annual Financial Statements, which are available on our website.
2. Who we are | 6 |
Message from the Chairman | 7 |
FY26 highlights | 9 |
PPC at a glance | 10 |
Our value creating business model | 12 |
OUR REPORTING SUITE
Integrated Report Annual Financial StatementsThis Integrated Report provides a balanced and concise overview of our purpose and strategic
3. Strategic context | 14 |
Message from the Chief Executive Officer | 15 |
Our external operating environment | 18 |
Our value creating strategy | 21 |
Our material matters | 24 |
Risks and opportunities | 26 |
Stakeholder engagement | 31 |
priorities and future prospects, including governance, business model, value creation and financial and non-financial performance. It should be read in conjunction with the FY26 Sustainability Report and FY26 Annual Financial Statements.
The FY26 Annual Financial Statements (AFS) present the consolidated financial performance and financial position of PPC and its subsidiaries.
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Sustainability Report Notice of the FY26 Annual General Meeting
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4.Performancereview
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36
Chief Financial Officer’s report
Performance review
Our FY26 Sustainability Report is intended for stakeholders seeking to understand PPC's sustainability-related impacts, risks and opportunities, including our approach to natural resource management, social impact and longterm value creation.
The Notice of the FY26 Annual General Meeting (AGM) informs shareholders of the date, time and venue of the AGM. It includes the agenda, resolutions to be considered and proxy voting instructions where shareholders may exercise their voting rights.
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5.Governance50
Reporting frameworks
Governance report Our board of directors Board demographics Remuneration report
King IV application register
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85
The reporting framework, codes and legislation we report against:
- Integrated Reporting
Framework International Financial Reporting Standards (IFRS)
South African Companies Act No. 71 of 2008 (Companies Act)
King IV Report on Corporate Governance™ for South Africa, 2016 (King IV™)1,2
JSE Listings Requirements
Global Reporting Initiative (GRI) Standards
1 Copyrights and trademarks are owned by the institute of directors in South Africa NPC and all of its rights are reserved.
2 PPC's governance disclosures have been prepared with reference to the King IV Report on Corporate Governance™ for South Africa, 2016 (King IV™), which informed governance practices for most of the reporting period. The Group has commenced aligning its governance practices and disclosures with King V Code™, which is effective for financial years commencing on or after 1 January 2026.
PPC INTEGRATED ANNUAL REPORT 1
1 Introduction
This section outlines the scope, basis and preparation of the PPC FY26 Integrated Report. It explains the purpose of the report, the material matters that informed its content, the reporting process and governance applied, the reporting period and reporting boundary, the intended audience and the basis for forward-looking statements.
Our FY26 Integrated Report
3
PPC INTEGRATED ANNUAL REPORT 2
Our strategy
Through our Awaken the Giant strategy, we create value by strengthening PPC's competitiveness, profitability and cash generation while investing for sustainable long-term growth. This is achieved through the responsible stewardship of our financial, human, intellectual, social and relationship, manufactured and natural capitals, which support the delivery of our strategy and business model. Our activities seek to create and preserve value for shareholders and other stakeholders, recognising that external factors, market conditions and operational challenges may influence outcomes over time.
Aligning our purpose, strategy and business model enables PPC to create sustainable value across the markets in which we operate, as outlined on page 36 of this report.
Materiality
The board has approved PPC's materiality determination process, which identifies the factors most relevant to the Group's ability to create, preserve and sustain value over the short term (one year), medium term (two to three years) and long term (five years and beyond). PPC follows a double materiality approach, which considers both the financial effects of sustainability-related matters on the Group and the impacts of the Group's activities on society, the environment and the broader economy. The process considers the interests and expectations of key stakeholders, the operating
Integrated reporting process
The PPC FY26 Integrated Report was prepared through a collaborative process involving the board, executive management (Exco), business leaders and subject matter experts across the Group.
Integrated reporting Framework
Coordinated Assurance Model
Exco sign-off
Approving the Integrated ReportValidating the integrity of our reportCompiling our reportGuided by the principles of integrated thinking, the report draws on strategic plans, business performance reviews, risk assessments, sustainability information and discussions held throughout the year. A cross-functional team coordinated the preparation of the FY26 Integrated Report, FY26 Sustainability Report and FY26 AFS to promote alignment and consistency across the reporting suite. The board reviewed and approved the report as part of the Group's governance processes. The board is satisfied that this report presents a balanced, transparent and integrated view of PPC's strategy, governance, performance and prospects.
Validation by respective
environment, strategic priorities, emerging risks and opportunities, and matters that could materially influence PPC's performance, long-term sustainability and wider societal outcomes.
During FY26, the materiality assessment was refreshed through engagement with the board, executive management and key internal stakeholders. The assessment considered developments across our operations in South Africa, Botswana and Zimbabwe, including market conditions, regulatory developments, sustainability considerations and stakeholder priorities. The outcome is a set of material matters that inform strategy, risk management, capital allocation and performance monitoring across the Group. Refer to page 24 for more information on our material matters.
Financial materiality Impact materialityVarious reporting standards and guidance
Board, executive management, Integrated Reporting Team
functional areas, executive management and the Board
Board, executive management
Board approval
Board, executive management
The risks and opportunities arising from sustainability-related matters that could influence PPC's financial performance, cash flows, access to capital, enterprise value and long-term competitiveness.
The actual and potential impacts of PPC's activities, products and operations on people, communities, the environment and the broader economy.
PPC INTEGRATED ANNUAL REPORT 3
Reporting period
This Integrated Report provides a holistic account of PPC's financial and non-financial performance for the year ended 31 March 2026. It sets out how the Group creates, preserves and sustains value through the execution of its strategy. Material events occurring between the reporting date and the board approval date of 22 July 2026 have been included where relevant, including significant macroeconomic, regulatory and operational developments and material post-balance sheet events.
Target audience
This report is intended for stakeholders who have an interest in PPC's strategy, governance, performance and long-term sustainability. These include providers of capital and insurers, governments and regulators, suppliers and local businesses, employees and labour unions, customers, industry associations, media, communities, non-governmental organisations (NGOs) and other stakeholders who influence or are affected by our activities.
Reporting scope and boundary
Material disclosures are provided for the following segments of the Group:
Forward-looking statements
This report contains forward-looking statements regarding PPC's strategy, performance, prospects and future plans. These statements are based on current expectations, assumptions and information available at the date of publication and are subject to inherent uncertainties, risks and other factors that may cause actual outcomes to differ materially from those expressed or implied. Such factors may include changes in economic conditions, market dynamics, regulatory developments, operational performance and other circumstances beyond the Group's control.
Forward-looking statements should therefore not be regarded as guarantees of future performance. Except as required by applicable law or regulation, PPC undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date
of publication.
Feedback on IR
We welcome feedback on this Integrated Report. Please contact the company secretary with any comments in this regard.
South Africa and Botswana Cement
Integrated cement manufacturing, milling, blending and distribution operations serving infrastructure, commercial and retail markets across Southern Africa.
South Africa Materials
Aggregates, readymix and ash operations supporting vertically integrated construction solutions.
PPC Zimbabwe
Cement manufacturing and distribution operations with integrated clinker and milling facilities serving retail, commercial and infrastructure sectors.
Unless otherwise stated, environmental, social and governance (ESG) disclosures in this report relate to PPC's controlled operations in South Africa, Botswana and Zimbabwe. Information relating to suppliers, contractors, joint ventures and other business relationships over which PPC does not exercise operational control is excluded from the scope of reporting, except where considered material to understanding the Group's performance, risks or impacts.
Kevin Rosskevin.ross@ppc.co.za | +27 (11) 386 9585
PPC INTEGRATED ANNUAL REPORT 4
Board approval
The board acknowledges its responsibility for the integrity and completeness of this Integrated Report and confirms that it has been prepared in accordance with the applicable reporting frameworks and standards. The board is satisfied that the report addresses all material matters that could reasonably influence the assessments and decisions of stakeholders, and provides a balanced, transparent and comprehensive account of PPC's strategy, governance arrangements, performance and prospects for the year ended 31 March 2026.
The board approved the FY26 Integrated Report on 22 July 2026*.
Signature
Director
Financial capital | PPC adopts a disciplined approach to capital allocation, liquidity management and investment decisions to strengthen profitability, cash generation and long-term shareholder value. Financial capital supports the execution of our strategy, operational improvements and growth investments. |
Manufactured capital | Our plants, quarries, depots and logistics infrastructure form the foundation of our operations. Ongoing investment in reliability, maintenance and modernisation supports operational efficiency, product quality and sustainable growth. |
Natural capital | We manage natural resources responsibly through efficient use of energy, water, raw materials and land. Our approach focuses on managing environmental impacts, improving resource efficiency and supporting our decarbonisation ambitions. |
Social and relationship capital | Strong relationships with customers, employees, suppliers, communities, regulators and other stakeholders support our licence to operate and ability to create shared value. Meaningful engagement helps build trust, strengthen partnerships and support long-term success. |
Human and intellectual capital | Our people, expertise, systems and organisational knowledge are critical to delivering our strategy. We invest in safety, leadership, skills development, technical capability and a performance-driven culture that supports accountability, innovation and continuous improvement. |
Our capitals: our resources and relationships
Jabu MoleketiIndependent chairman
Matias CardarelliChief executive officer
Kunyalala Maphisa
Independent non-executive director
Nono MkhondoIndependent non-executive director
Nonkululeko Gobodo
Independent non-executive director
Bjarne Moltke HansenIndependent non-executive director
Mark Richard Thompson
Independent non-executive director
*The FY26 Integrated Report was approved by the directors in office at the date of publication
2 Who we are
This section provides an overview of PPC's FY26 performance, strategic progress and approach to value creation. It includes the chairman's message, key highlights from the year, an overview of the Group and an explanation of how PPC creates sustainable value through disciplined execution, responsible governance and longterm investment.
Message from the chairman 7
FY26 highlights 9
PPC at a glance 10
Our value creating business model 12
PPC INTEGRATED ANNUAL REPORT 6
Message from the chairman
I am pleased to present the PPC FY26 Integrated Report, which documents the second year of disciplined execution and steady progress in the delivery of our Awaken the Giant turnaround strategy. Group revenue increased by 3,9% to R10,3 billion, while EBITDA increased by 31% to R2,1 billion and EBITDA margin improved by 4,2 percentage points to 20,3%. These results reflect stronger operational performance, improved cost discipline and higher quality earnings, with headline earnings per share increasing 25% to 50 cents. Net cash inflow before financing activities, adjusted for RK3 expenditure, increased by 23% to R1,3 billion, while the Group maintained a net cash position in South Africa and Botswana and increased cash holdings to R1,1 billion. Collectively, these outcomes strengthened the Group's balance sheet, enhanced financial flexibility and increased confidence in PPC's long-term strategic direction.
Jabu Moleketi
Chairman
22 July 2026
This strengthened financial and operational position was supported by strong performance from PPC South Africa and Botswana Cement and continued growth in Zimbabwe, which accelerated operational momentum across the Group. PPC Zimbabwe remained a significant contributor to Group performance, declaring a record gross dividend of R490 million during the year. This demonstrates the strength of the business and its cash-generating capability.
These outcomes were driven by management's continued focus on operational performance, logistics optimisation, procurement discipline and sharper commercial execution across the business. Greater emphasis was also placed on improving the quality of revenue, simplifying customer engagement processes and embedding a more deliberate cost mindset throughout the Group.
Navigating a world in transition
The global operating environment during FY26 remained dynamic, influenced by geopolitical developments, trade tensions and uneven economic performance across markets. While these factors contributed to volatility in commodity prices, currency and supply chain dynamics, they also reinforced the importance of operational agility, balance sheet strength and strategic investments.
At the same time, operating conditions across Southern Africa remained challenging and largely unchanged in FY26. South Africa continued to face subdued construction activity and energy cost pressures, affecting cement demand and production costs. In Zimbabwe, the construction sector continued to expand, supporting cement demand, while Botswana experienced slower infrastructure momentum and logistical constraints affecting regional trade and distribution.
Within South Africa, we noted some signs of improving economic sentiment during the year. Easing electricity constraints and renewed announcements relating to infrastructure investment contributed to a more positive medium-term outlook. For PPC, sustained infrastructure investment and the deployment of capital into productive projects remain critical indicators of long-term cement demand and broader sector recovery.
The board remains mindful that the region's recovery trajectory is sensitive to external shocks, including geopolitical conflict, energy market volatility and inflationary pressures that could affect construction activity, infrastructure delivery and business confidence across PPC's markets. Against this backdrop, PPC continued strengthening operational efficiency, improving commercial execution and positioning the business for long-term competitiveness.
Message from the chairman
Progress on RK3 and other strategic projects
The board is pleased with the continued progress made on the construction of the new RK3 integrated cement plant in the Western Cape, which was approved in FY25 as a major strategic investment to modernise PPC’s production capacity, improve energy efficiency and strengthen
long-term cost competitiveness. Once operational, the plant is expected to lower emissions, reduce coal and power consumption and support PPC’s long-term decarbonisation ambitions.
The project forms part of PPC’s broader operational modernisation strategy, which includes renewable energy projects across South Africa and Zimbabwe, investments in plant efficiency and the exploration of lower-carbon technologies and alternative materials such as calcined clay. While further work remains, the board believes the Group’s operational trajectory remains positive and that the benefits of the turnaround strategy are becoming increasingly visible across the business. These outcomes demonstrate the value of focused leadership, disciplined execution and the collective efforts of our employees across South Africa, Botswana and Zimbabwe as we continue positioning PPC for sustainable long-term value creation.
Strengthening governance, sustainability oversight and ethics
PPC upholds the highest standards of ethical leadership, transparency and responsible corporate citizenship. This includes maintaining governance structures that are responsive to changing stakeholder expectations, regulatory developments and long-term sustainability risks
and opportunities.
FY26 marked an important step forward in strengthening PPC’s sustainability governance approach. During the year, the board approved PPC’s ESG Strategy. The strategy will inform governance oversight, accountability mechanisms and strategic direction for the management of environmental, social and governance priorities across the Group.
In addition, the board continued overseeing PPC’s transition towards enhanced sustainability reporting practices and alignment with evolving governance expectations, including King IV and IFRS Sustainability Disclosure Standards.
Embedding a culture of safety
The board maintains a zero-tolerance approach to safety non-compliance and continues to support initiatives aimed at strengthening safety culture, leadership accountability and operational discipline across the Group. Despite continued focus on improving safety performance across the business,
I am disheartened to report that the Group recorded a contractor fatality during the year. This tragedy reminds us all of the importance of personal accountability, procedural discipline and strict adherence to safety requirements across all operations and contractor activities. In response, management strengthened initiatives focused on behavioural safety, near-miss reporting, operational risk observation and consequence management.
The board also continued overseeing broader employee wellbeing, workforce stability and organisational culture initiatives during the year, including initiatives focused on employee wellness, leadership development and succession planning. The board will continue prioritising safety oversight and supporting initiatives aimed at strengthening accountability, operational discipline and a proactive safety culture across the Group.
Supporting a competitive operating environment
As a leading cement producer and long-term investor in Southern Africa, PPC supports the development of a competitive, sustainable and locally anchored cement industry. The board recognises that continued investment in manufacturing capacity, infrastructure, energy resilience and decarbonisation requires a fair and predictable operating environment that enables local producers to compete effectively.
During the year, PPC and broader industry stakeholders continued engaging with government and regulators on matters affecting the long-term sustainability of the sector. These included the impact of dumped imported cement and clinker, the equalisation of carbon tax treatment between imported and locally produced cement products and the consistent enforcement of applicable cement standards across the market.
The board believes these matters are important to the competitiveness of local manufacturers and to advancing industrialisation, infrastructure development, employment and investment across South Africa. We are encouraged by the constructive engagement taking place and remain optimistic that further progress will create a more level playing field for local production and strengthen the longterm growth and sustainability of the sector.
Looking ahead
Although macroeconomic and industry conditions remain uncertain, the board believes PPC is entering FY27 with stronger operational foundations, improved commercial discipline and the momentum required to sustain long-term value creation. The Group will continue to strengthen profitability, maintain disciplined capital allocation and embed a high-performance culture across the organisation.
Priorities for FY27 will also include deepening operational efficiency initiatives, improving customer experience, advancing logistics and procurement optimisation programmes and improving operational consistency across the Group’s manufacturing footprint. Lastly, PPC will progress strategic energy, technology and decarbonisation initiatives aimed at improving long-term competitiveness, operational resilience and environmental performance.
Appreciation
I extend my sincere appreciation to my fellow Board members, management and employees across South Africa, Zimbabwe and Botswana for their resilience, discipline and commitment during the year. I also thank Charles Naudé, who retired as a non-executive director during the year, for his dedicated service and valuable contribution to PPC over many years. I further thank Brenda Berlin, who retired as Chief Financial Officer (CFO), for her dedicated service. Brenda played an important role in strengthening the Group's finance function and financial position, while supporting the successful execution of the Awaken the Giant turnaround strategy. I also welcome Veliswa Rozani, who will join PPC as CFO on 1 October 2026. During the transition period, Paulo Marques will serve as Acting CFO. Finally, I thank our customers, suppliers, shareholders, regulators and broader stakeholders for their continued support and partnership as PPC continues building a more resilient, competitive and sustainable business.
Jabu Moleketi
Chairman
FY26 highlights
Revenue | EBITDA | EBITDA margin | ||
R10 255 million | R2 079 million | 20 ,3% | ||
(FY25: 9 871 million) | (FY25: 1 593 million) | (FY25: 16,1%) |
Pro Forma HEPS increased by 45% 58 cents (FY25: 40 cents)1 | EPS increased by 75% to 56 cents (FY25: 32 cents) | Net cash flow before financing (excluding RK3) R1 295 million (FY25: 1 049 million) |
Increased Overall Equipment Effectiveness (OEE) to 84.3% from 82.5% in FY25 | Progressed the RK3 integrated plant project to reduce production costs, improve energy efficiency and reduce emissions intensity through advanced technology | Commissioned the Selective Non-Catalytic Reduction (SNCR) system at De Hoek to support NOx emissions reduction and compliance with Minimum Emission Standards |
Maintained a B-BBEE Level 1 rating for PPC South Africa Holdings | Continued investing in CSI and SLP initiatives across South Africa, Botswana and Zimbabwe | Supported skills development and youth employability initiatives through learnerships, internships, graduate programmes and the YES initiative |
Embedded Awaken the Giant change-driving behaviours across the business to strengthen accountability, execution discipline and behavioural alignment | Achieved a 93,3% Employee Engagement Pulse Survey completion rate supporting the embedding of the Awaken the Giant turnaround strategy across the Group | Board-approved ESG and decarbonisation priorities continued guiding operational execution through strengthened oversight of environmental performance, risk management and long-term sustainability objectives |
1 Excluding realised and unrealised foreign exchange losses on RK3
PPC at a glance
PPC is a trusted provider of cement, aggregates, readymix and fly ash across South Africa, Botswana and Zimbabwe. We also offer dedicated technical expertise to help customers optimise product performance. The principal activities of the business remain unchanged from the previous reporting period.
Our business segments
PPC operates a diversified portfolio of business segments spanning cement, aggregates, readymix concrete and fly ash. The table below summarises the Group's three operating segments and the products and services they provide across the construction value chain.
Integrated cement manufacturing, milling,
Our footprint
PPC was founded in 1892 as South Africa's first cement manufacturer. Headquartered in Johannesburg,
South Africa and Botswana Cement
South Africa Materials
PPC Zimbabwe
Our products
blending and distribution operations serving infrastructure, commercial and retail markets across Southern Africa.
Aggregates, readymix and ash operations supporting vertically integrated construction solutions.
Cement manufacturing and distribution operations with integrated clinker and milling facilities serving retail, commercial and infrastructure sectors.
South Africa, the Group operates across South Africa, Botswana and Zimbabwe. Our presence in these three markets reflects more than a century of resilience and adaptability in diverse operating environments.
23
readymix plants
5
integrated cement plants
PPC manufactures and supplies a diversified portfolio of construction materials, including cement, aggregates, readymix concrete and fly ash. These products support residential, commercial, industrial and infrastructure development across the markets in which the
Group operates as detailed in the table below.
Product category Description
Cement PPC produces a range of cement products servingresidential, commercial, industrial and infrastructure markets across Southern Africa.
Aggregates PPC supplies crushed stone, sand and otheraggregate products used in construction, mining and industrial applications.
5
grinding stations
4
blending plants
2
aggregate quarries
8,2 MPTA
Readymix concretePPC offers customised readymix concrete solutions designed to meet a wide range of project specifications and performance requirements.
capacity (cement)
Fly ash PPC supplies classified and unclassified fly ash products that support cementitious applications and contribute to resource efficiency.Please see page 36 for more on our business segments.
PPC at a glance
PPC operates through a portfolio of subsidiaries and investments across Southern Africa, supporting the production, distribution and supply of construction materials. The Group's structure supports its integrated business model and geographic footprint and enables effective governance, operational oversight and long-term value creation. The percentages shown in the organisational structure represent PPC's effective ownership interest in each entity as at 31 March 2026.
STRATEGIC CONTEXT
Our value creating business model
Inputs: The strategic resources underpinning our business
Business Activities: Advancing our strategic turnaround plan
Outputs:
FINANCIAL CAPITAL
Funding facilities and investors
International and domestic capital markets
Finance institutions
MANUFACTURED CAPITALProperty, plant and equipment
Production capacity
Quality products and services
Capital expenditure
HUMAN CAPITALSkills development
Leadership
Performance-driven workforce
INTELLECTUAL CAPITALTransformation
Technology for cement and materials production
Innovation driving operational efficiencies, reduced costs and optimised performance
SOCIAL AND RELATIONSHIP CAPITALPPC’s reputation and brand
Customer and supplier experience
Engagements with stakeholders
NATURAL CAPITALWater
Air
Land and Biodiversity
Waste
Our stakeholders impacted* Note: Arrows indicate the direction of value preservation.
*Please refer to page 31 for more information on our stakeholders.
Our value creating business model
Outcomes: Performance and operational excellence
Financial | Performance | FY25 | FY26 | |
EBITDA (Rbn) | 1,6 | 2,1 | ||
Capital expenditure (Capex) (Rm) | 377 | 831 | ||
Cash generated from operations (Rm) | 1 874 | 1 883 | ||
Working capital as a % of revenue (%) | 6 | 3 | ||
Group debt (Rbn) | 0,5 | 0,5 | ||
Gross debt/EBITDA ratio | 0,3 | 0,3 | ||
Cash interest paid (Rm) | 98 | 78 | ||
Basic earnings per share (EPS) (cents) | 32 | 56 | ||
Headline earnings per share (HEPS) (cents) | 40 | 50 | ||
Manufactured* | ||||
Cement (kt) | — | — | ||
Aggregates (kt) | — | — | ||
Readymix (m3) | — | — | ||
Fly ash (kt) | — | — | ||
Human and intellectual | ||||
Salaries, wages and other benefits paid to employees (continuing operations) (Rbn) | 1,6 | 1,6 | ||
Women representation (%) | 24,5 | 25,2 | ||
Employee turnover (%) | 7,04 | 7,27 | ||
Social and relationship | ||||
Number of customer complaints | 178 | 314 | ||
Spending on socio-economic development (Rm) | 9,9 | 2,1 | ||
BEE level | 1 | 1 | ||
Procurement from preferential suppliers (Rbn) | 2,7 | 4,0 | ||
Natural | ||||
Water intensity (m3/tonne of cement) | 0,29 | 0,26 |
*Numerical values have been withheld due to commercial sensitivity
3 Strategic context
This section provides an overview of PPC's strategic direction and performance during FY26. Beginning with the CEO's report, it discusses the external operating environment, the Group's value creation strategy, material matters, key risks and opportunities, and stakeholder engagement. Together, these elements provide context for how PPC creates value by focusing on the factors within its influence while responding to changing market conditions. | |
Message from the CEO | 15 |
Our external operating environment | 18 |
Our value creating strategy | 21 |
Our material matters | 24 |
Risks and opportunities | 26 |
Stakeholder engagement | 31 |
PPC INTEGRATED ANNUAL REPORT 14
Two years of consistent delivery
FY26 was a year of continued progress as we advanced the execution of our Awaken the Giant strategy and delivered a second consecutive year of improved operational and financial performance. Despite a challenging operating environment, the actions taken over the past two years to strengthen operational efficiency, improve accountability, optimise costs and enhance commercial execution continued to deliver meaningful results.
Over the past two years, we have fundamentally reshaped PPC by strengthening leadership, embedding a culture of accountability, improving decision making and refocusing the business on the operational and commercial fundamentals that drive value in our industry.
Matias Cardarelli
CEO
22 July 2026
Awakening the Giant Financial performance People and culture
Awaken the Giant continued to deliver tangible results during FY26. The Group saw improved operational performance, stronger profitability and increased cash generation through disciplined cost management and a continued focus on value-accretive sales. We also advanced strategic investments like the new RK3 plant and renewable energy projects, strengthening PPC's long-term competitiveness and positioning the business for
sustainable growth.
The successful execution of Awaken the Giant has translated into another year of strong financial performance. Improved operational efficiencies, disciplined cost management and a focus on value-accretive sales supported growth in earnings, cash generation and returns. Profit after tax increased by 84% to R859 million, while headline earnings per share increased by 25% to 50 cents.
Awaken the Giant is as much about people and culture as it is about systems and processes. During FY26, we continued strengthening accountability, technical capability and performance across the organisation, while investing in leadership development, employee engagement and safety. These efforts are creating a stronger foundation for execution and supporting the long-term sustainability of the business.
Driving performance in a challenging operating environment
The year unfolded against a backdrop of mixed economic conditions across our markets. In South Africa and Botswana, construction activity remained subdued, constrained by limited infrastructure spending, muted private sector investment and heightened competitive pressures. Zimbabwe continued to experience strong underlying demand, supported by industrial and retail activity. Despite these market conditions, PPC remained focused on value-accretive sales, disciplined pricing, operational efficiency and cost management. These actions strengthened the resilience of the business and enabled us to continue improving performance in a low-growth environment.
Awakening the Giant
The Awaken the Giant strategy continued to gain momentum during FY26 as its principles became increasingly embedded across the organisation. The strategy is designed to restore competitiveness, improve profitability and create sustainable long-term value through disciplined execution. Our focus on quality returns, value creation for shareholders and disciplined investment in high-return projects has driven meaningful improvements in operational performance, earnings quality and cash generation. The benefits of the structural, cultural and operational changes implemented over the past two years are now evident across the business and strengthen our confidence in the sustainability of the turnaround.
Message from the CEO
The strategy has delivered measurable improvements across key financial and operational indicators. Operational efficiencies, improved plant performance, logistics optimisation, procurement savings and focused contribution margin management have strengthened our earnings base and improved returns. Importantly, these improvements reflect fundamental changes in the way we operate, allocate capital and compete, providing a stronger foundation for future growth and value creation.
Group performance
FY26 was a year of continued progress as we advanced the execution of our Awaken the Giant strategy and delivered a second consecutive year of improved operational and financial performance. Although the operating environment remained challenging, the actions taken over the past two years to strengthen operational discipline, improve accountability, optimise costs and enhance commercial execution continued to deliver meaningful results. Across the two-year turnaround period, EBITDA increased by approximately 68%, from R1.2 billion in FY24 to R2.1 billion in FY26, while EBITDA margin expanded from 12.3% to 20.3%. These are not cyclical gains, but structural improvements that reflect a stronger and more competitive PPC.
Over this period, we have fundamentally reshaped PPC by strengthening leadership, embedding a culture of accountability, improving decision-making and refocusing the business on the operational and commercial fundamentals that drive value in our industry. These improvements are driven by strategic clarity, disciplined execution and a relentless focus on competitiveness.
The positive trajectory is evident across the different segments of the Group. In FY26, South Africa and Botswana delivered a significant improvement in profitability as turnaround initiatives continued to gain traction, while Zimbabwe achieved another year of strong growth and record EBITDA. Strong cash generation, disciplined capital allocation and improved returns further strengthened the Group's financial position and enhanced our capacity to invest in future
growth opportunities.
At the heart of this transformation is a simple principle: competitiveness. We have oriented the business around this objective, with operational, commercial and capital allocation decisions guided by the pursuit of sustainable long-term value.
South Africa and Botswana cement
Cement sales volumes in South Africa and Botswana, including clinker sales to Zimbabwe, increased by 1.3% compared to the prior year. South African volumes remained broadly stable, with growth in the industrial and construction segments offsetting softer retail demand amid continued competitive pressure. Increased clinker sales to Zimbabwe, particularly during the first half of the year, supported overall volume growth, although this was partially offset by lower volumes
in Botswana.
Despite a subdued demand environment, disciplined pricing and a favourable sales mix contributed to a 1.8% increase in cement revenue, before inter-segment eliminations, to R6.25 billion (FY25: R6.14 billion). PPC continued to focus on value-accretive market participation and channel optimisation, supporting revenue quality and margin improvement.
The business delivered further progress in enhancing competitiveness through a structurally lower cost base and continued operational improvement. Benefits from turnaround initiatives, including logistics optimisation, operational efficiencies and disciplined overhead management, more than offset input cost inflation, resulting in a 3.6% reduction in total costs, including depreciation.
This combination of revenue quality, cost discipline and operational efficiency contributed to a significant improvement in profitability. EBITDA increased to R1.20 billion (FY25: R837 million), with margins expanding to 19.1% (FY25: 13.6%). Excluding the profit realised on the disposal of a non-core property, EBITDA increased by 26%, demonstrating the sustained impact of PPC's turnaround initiatives and the continued strengthening of the underlying business.
PPC Zimbabwe
PPC Zimbabwe delivered another strong performance during FY26, supported by robust market demand and continued operational improvements. Cement sales volumes increased by 18.2% compared to the prior year, reflecting sustained demand across key markets. Although production at the Bulawayo plant was temporarily affected by a gearbox failure during the second half of the year, the business responded effectively and maintained strong volume growth overall.
Revenue increased by 14.3% to R3.57 billion, while profitability continued to improve as operational efficiencies and turnaround initiatives gained further traction. Increased clinker production, supported by improved plant performance and enhanced operational efficiency helped meet growing customer demand.
EBITDA increased to a record R961 million, demonstrating the strength of the underlying business and the benefits of continued operational improvement. Margin performance remained strong and improved during the second half of the year.
Zimbabwe remains a strategically important market for PPC, characterised by a strong market position, healthy cash generation and a disciplined operating model. The business maintained its debt-free position and continued to generate significant value for the Group, declaring a record gross dividend of R490 million during the year. Capital expenditure focused primarily on sustaining operational reliability and quarry efficiency, including maintenance at the Colleen Bawn integrated plant and investment in mining equipment to support long-term production capability.
PPC INTEGRATED ANNUAL REPORT 16
Investing for future competitiveness
Alongside improvements in operational and financial performance, we continued investing in projects that will strengthen PPC's long-term competitiveness and resilience.
Construction of the RK3 integrated cement plant in the Western Cape progressed according to plan during the year and remains within the board-approved budget of R3.1 billion. The project advanced through key construction milestones and is expected to be completed in the final quarter of FY27. Once operational, RK3 is expected to improve production reliability, enhance energy efficiency, reduce emissions intensity and strengthen PPC's cost competitiveness. The project will also strengthen PPC's position in the strategically important Western Cape market and support longterm value creation.
Zimbabwe remains one of the most attractive growth opportunities within the PPC portfolio, supported by a favourable long-term outlook. To capture this opportunity, PPC is working with Sinoma Overseas to improve the performance and capacity of its existing operations while fast-tracking the feasibility assessment of a potential new integrated cement plant in the country. We believe such a project has the potential to be highly value accretive, although any investment will be subject to PPC’s rigorous governance, capital allocation and investment approval processes.
We also advanced our renewable energy programme through the successful commissioning of two 10MW embedded solar plants at Dwaalboom and Slurry. Together, these facilities are expected to generate more than 56 million kWh of clean electricity annually and reduce carbon emissions by more than 50 000 tonnes per year. Progress was also made on the 20MW solar wheeling project, which is expected to supply renewable electricity to several PPC operations and further strengthen energy resilience and cost competitiveness.
Renewable energy investments extended to Zimbabwe, where we progressed the development of a 30MW solar programme comprising a 20MW embedded solar plant with battery storage at Colleen Bawn and a 10MW solar plant at Bulawayo. These projects will strengthen energy resilience, reduce operating costs and support the Group's decarbonisation strategy.
Our people and culture
Safety remains our highest priority. Unfortunately, during FY26 we experienced the loss of a contractor. We extend our sincere condolences to the contractor's family, colleagues and loved ones. This tragic loss is unacceptable and reinforces our determination to create a workplace where no one is harmed. It highlighted the need for greater vigilance, stronger leadership accountability and the consistent application of safety standards across all operations and contractor activities.
Encouraging progress was made in proactive safety management through increased near-miss reporting, planned job observations and behavioural safety interventions. Although these improvements are encouraging, we remain committed to building a stronger safety culture and ensuring that every person returns home safely each day.
Beyond safety, we continued embedding the behavioural and cultural foundations of Awaken the Giant through a renewed focus on accountability, ownership, urgency and execution.
The introduction of Awaken the Giant change-driving behaviours has improved alignment between strategy, culture and day-to-day execution, supporting improved performance across the business.
Employee engagement remained a priority, supported by a pulse survey completion rate of 93.3%, which provided valuable insight into employee sentiment and organisational alignment. We are
investing in leadership development, short to long-term succession planning, technical capability and workforce skills to support the talent and capabilities required for long-term success.
We also strengthened our executive leadership team during the year and, subsequent to year end, announced the appointment of Veliswa Rozani as CFO, effective 1 October 2026. I look forward to welcoming Veliswa to PPC and working closely with her as we continue executing the next phase of our strategy. I would also like to thank Brenda Berlin for her outstanding contribution to PPC and for the leadership she has provided during her tenure as CFO. We wish her every success in her retirement. Paulo Marques will serve as Acting CFO during the transition period.
Looking ahead
The progress achieved over the past two years gives us confidence in PPC's future. Awaken the Giant is delivering ahead of plan and the business is increasingly positioned to benefit from its improved competitiveness, stronger balance sheet and disciplined operating model. Although we are proud of the progress achieved, we are equally clear that the turnaround journey is not complete. The foundations are now in place for the next phase of growth.
Looking ahead, FY27 will be a year of consolidation and execution as we embed the gains achieved to date and prepare for the next step-change in performance as strategic investments come online. Our priorities remain clear: continue improving operational performance, maintain disciplined capital allocation, execute the RK3 project successfully, strengthen safety performance and create sustainable long-term value for our stakeholders.
We are encouraged by the constructive engagement taking place between industry stakeholders and government on several matters that are important to the long-term sustainability and competitiveness of South Africa's cement industry. These include the impact of imported cement and clinker on local producers, the equalisation of carbon tax treatment between imported and locally produced cement products and the consistent enforcement of cement standards across the market.
These engagements support the competitiveness of the local cement industry and broader manufacturing investment, infrastructure development and employment. While PPC's strategy remains firmly focused on strengthening its own competitiveness through operational excellence, disciplined capital allocation and strategic investment, we are optimistic that progress on these matters will contribute to a more level playing field for local production over time.
Appreciation
I would like to thank our employees, management team and board for their commitment, resilience and focus throughout the year. Your dedication has been instrumental in advancing the turnaround and positioning PPC for long-term success. I also extend my sincere appreciation to our customers, suppliers, shareholders, communities, regulators and other stakeholders for their continued support and confidence in PPC. Together, we are building a stronger, more competitive and more sustainable business that is well positioned to create value for generations to come.
Matias Cardarelli
CEO
Cement and concrete remain fundamental to infrastructure development, industrial expansion and urbanisation across PPC’s markets. As one of the world’s most widely used construction materials, cement demand is closely linked to economic growth, infrastructure investment, energy availability and broader construction activity. The industry operates in a highly competitive and cyclical environment, where long-term sustainability depends on asset quality, footprint, operational efficiency, disciplined reinvestment, balance sheet strength and the ability to respond to changing market conditions.
Understanding our landscape
PPC’s operations span South Africa, Zimbabwe and Botswana. Across all three countries, we maintain a strong presence through domestic manufacturing facilities, locally employed teams and significant contributions to the economies and communities in which we operate. This established footprint positions us as an important participant in each market, while also exposing the business to the economic conditions, policy environment and broader macroeconomic trends that influence demand and operating performance across each geography.
Despite these pressures, opportunities continued emerging through selected infrastructure programmes, industrial development, urbanisation trends and private sector construction activity across South Africa, Botswana and Zimbabwe. PPC remained focused on strengthening operational efficiency, cost competitiveness, margin management and customer responsiveness.
Regional market conditions
The operating environment across PPC’s markets continues to be influenced by economic growth trends, fiscal policy, infrastructure investment, inflationary pressures, energy stability and broader construction activity. Maintaining long-term competitiveness and resilience depends on PPC’s ability to reinvest in its operations and position the business to respond to future infrastructure-led growth opportunities across the region.
Population (1)Urban population growth % (2)Projected GDP Cement consumption(2026) % (3)per capita (4)Key economic indicatorsSouth Africa 65,5 million 1,9 1,4 228 kgBotswana 2,6 million 2,4 4,7 300 kgZimbabwe 17,3 million 2,2 5,0 99 kg(1) Source: https://www.worldometers.info (United Nations data) as at May 2026
(2) Source: The World Bank as at May 2026
(3) Source: The World Bank as at May 2026
(4) Source: Global Cement Report Fifteenth edition 2024
PPC INTEGRATED ANNUAL REPORT 18
Our external operating environment
Economic conditions and demand cycles
The operating environment during FY26 remained constrained by muted infrastructure investment, weak construction activity, pricing pressure and broader macroeconomic uncertainty across PPC’s key markets. Public sector infrastructure delivery remained slower than anticipated in parts of Southern Africa, while inflationary pressures, logistics constraints and subdued economic growth continued affecting construction demand and customer activity.
Despite these pressures, selected private sector and infrastructure-related opportunities continued supporting pockets of demand in South Africa. Management also noted early signs of improved infrastructure allocation in certain regional markets, although implementation remained gradual. PPC is focused on strengthening competitiveness, improving customer responsiveness and positioning the business to respond to future infrastructure-led growth opportunities across the region.
The year also reinforced the importance of disciplined commercial execution and operational accountability in a low-growth environment. Management highlighted that many of PPC’s most significant opportunities remained internal and achievable through stronger execution, improved customer engagement, operational optimisation and enhanced accountability across the business.
PPC’s strategic response in FY26Embedded the Awaken the Giant turnaround strategy across operational, commercial and support functions
Strengthened pricing governance and commercial discipline across the business
Improved customer engagement, transparency and commercial accountability
Simplified customer engagement processes and improved service consistency
Standardised pricing structures and strengthened contract management processes
Improved operational coordination between sales, logistics and operational teams
Focused on contribution margin, quality sales and cash generation
Appointed experienced leaders in key operational and commercial roles
Capitals impacted:Financial capital, Social and relationship capital.
Operational efficiency and cost optimisation
The cement industry is highly energy and capital intensive, requiring operational excellence and continuous efficiency improvements to remain competitive. During FY26, rising transport and energy costs continued placing pressure on margins across the sector, increasing the importance of procurement optimisation, operational reliability and productivity improvements.
PPC continued advancing initiatives to improve efficiency, strengthen plant reliability and enhance long-term competitiveness. Focus areas included greater accountability, disciplined execution, simplified processes and stronger cross-functional coordination to improve responsiveness and resilience.
Management also identified opportunities to improve efficiency by simplifying internal structures and reducing duplication. Selected logistics and distribution processes were refined to improve customer experience, optimise transport costs and strengthen operational control.
PPC’s strategic response in FY26Advanced procurement optimisation and logistics efficiency initiatives
Implemented operational simplification and process improvement measures
Strengthened route-to-market coordination and distribution efficiencies
Progressed the Plant Performance Improvement Plans (PPIP) implementation across operations
Improved sourcing optimisation and operational oversight processes
Progressed strategic projects such as RK3 and broader plant optimisation initiatives
Focused on improving operational reliability, production efficiency and margin resilience
Strengthened operational accountability and execution discipline across operations
Financial capital, Manufactured capital.
PPC INTEGRATED ANNUAL REPORT 19
3 Decarbonisation, sustainability and environmental stewardship
Cement producers continue facing increasing pressure to reduce emissions, improve energy efficiency and strengthen environmental performance in response to evolving regulations, stakeholder expectations and long-term climate considerations. Climate-related risks, energy security challenges and carbon-related obligations continue shaping operational and investment decisions across the sector.
PPC’s environmental priorities remain closely linked to operational drivers, cost competitiveness and long-term sustainability. During FY26, the Group continued integrating environmental stewardship into operational decision-making, strategic projects and broader sustainability initiatives across the business.
The operating environment also reinforced the importance of energy security and operational stability, with renewable energy and alternative fuel initiatives increasingly supporting both sustainability objectives and cost competitiveness.
PPC’s strategic response in FY26Progressed the RK3 integrated plant project to improve efficiency and lower emissions intensity
Continued increasing the use of extenders and alternative fuels initiatives
Commissioned the Selective Non-Catalytic Reduction (SNCR) system at De Hoek
Strengthened emissions monitoring and environmental compliance processes
Advanced renewable energy and energy efficiency initiatives across operations
Increased focus on operational stability, energy resilience and emissions efficiency
Maintained ISO 14001 certification across South African and Zimbabwean cement operations
Continued aligning environmental initiatives with long-term decarbonisation objectives
Natural capital, Financial capital, Social and relationship capital.
4 Infrastructure investment, localisation and industrial recovery
Governments across Southern Africa continued placing greater emphasis on infrastructure development, localisation and industrial recovery as part of broader economic growth and employment objectives during FY26. Ongoing discussions regarding roads, energy, water, housing and logistics infrastructure continued creating medium- to long-term opportunities for the cement and construction sectors, although implementation timelines remained uneven across markets.
At the same time, increasing concern around imported cement, price dumping and the competitiveness of local manufacturers continued shaping industry discussions and policy engagement across the region. This reinforced the importance of maintaining efficient operations, resilient supply chains and modern manufacturing capability.
PPC’s strategic response in FY26Maintained focus on strengthening local operational competitiveness and market responsiveness
Improved customer engagement and route-to-market execution across regional operations
Continued investing in strategic projects aligned to future infrastructure demand opportunities
Strengthened operational reliability and supply capability across key markets
Maintained engagement on industry competitiveness, localisation and creating a level
playing field between local manufacturers and importers
Positioned the business to respond to future infrastructure-led growth opportunities across
the region
Capitals impacted:Natural capital, Financial capital, Social and relationship capital.
5 Energy security, logistics and supply chain resilience
Energy volatility, transport inefficiencies and broader supply chain disruptions continued affecting industrial businesses across Southern Africa during FY26. Rising electricity costs, logistics constraints and disruptions across transport networks increased pressure on cement producers to strengthen energy resilience, operational flexibility and supply chain management. In response, PPC continued investing in renewable energy, operational optimisation and alternative fuel and raw material initiatives to reduce electricity, fuel, transport and production costs, strengthen operational reliability and support long-term sustainability objectives.
PPC’s strategic response in FY26Advanced renewable energy and energy efficiency initiatives across operations
Strengthened logistics optimisation and distribution planning processes
Improved operational coordination between commercial, logistics and operational teams
Continued implementing procurement optimisation and sourcing efficiency initiatives
Progressed strategic projects aimed at improving operational resilience and plant efficiency
Maintained focus on operational continuity, cost discipline and long-term supply chain resilience
Natural capital, Financial capital, Social and relationship capital.
Our strategic ambition
PPC's strategic ambition is to build a more competitive, disciplined and resilient business that delivers sustainable long-term value. The Group continues implementing its multi-year turnaround strategy to improve operational performance, strengthen commercial execution and enhance capital allocation. These priorities support operational stability, cost competitiveness and margin improvement while positioning PPC to respond to changing market conditions and infrastructure-led growth opportunities.
AWAKENING THE GIANT
Strategic pillars
Addressing and fixing the gapsAddressing the gapsStrengthening operational accountability, process efficiency and execution consistency across the business.
Strategic opportunities and projectsTurn around plan
Executing the turnaround strategyDriving operational, commercial and cultural initiatives aimed at improving profitability, operational resilience and long-term sustainability.
Positioning for long-term competitivenessIdentifying and progressing strategic projects and initiatives
that support long-term growth, competitiveness and value creation.
Technology
Enabling operational excellence
Technology enables the turnaround through operational efficiency, production reliability and disciplined capital allocation. Priorities include energy efficiency, data-driven decision-making and strategic projects such as RK3 to strengthen long-term competitiveness.
People
Building execution capability
Our priority is to have the right people in the right roles. This is supported through on-the-job training and targeted development initiatives, with a focus on succession planning, leadership development and building future skills through graduate programmes, learnerships and internships.
Culture
Embedding disciplined execution
Culture underpins our turnaround strategy through accountability, disciplined execution and hands-on leadership.
Our Awaken the Giant strategy
Our progress
Strengthening operational discipline
Operational improvement initiatives focused on logistics efficiency, production reliability and disciplined cost management. PPC strengthened coordination across sales, production and logistics and insourced the logistics function to improve customer service and operational control. The Group also made encouraging progress on the Plant Performance Improvement Plan (PPIP) programme, emissions control upgrades and process
improvement initiatives.
Embedding turnaround priorities
In FY26, we focused on embedding the operational, commercial and organisational culture priorities introduced through the Awaken the Giant turnaround strategy. Emphasis was placed on strengthening execution discipline, improving accountability and simplifying operational structures to improve consistency, responsiveness and long-term competitiveness across the business. We embedded 12 change-driving behaviours during the year to reinforce accountability, urgency, ownership and performance alignment across operations. PPC also achieved a 93.3% Employee Engagement Pulse Survey participation rate, reflecting strong employee engagement with the turnaround journey.
Improving commercial performance
During FY26, PPC strengthened commercial performance through disciplined pricing, value-accretive sales and contribution margin management. Improved sales mix, route-to-market optimisation and enhanced commercial coordination strengthened revenue quality and margins, while operational agility and supply reliability supported consistent commercial execution, contributing to improved profitability.
Building resilience and long-term competitiveness
PPC continued implementing initiatives aimed at strengthening operational resilience and positioning the business for long-term competitiveness despite muted construction demand and pricing pressures. Strategic focus areas included advancing the RK3 integrated plant project, progressing renewable energy initiatives, improving plant reliability and strengthening operational efficiency across the Group. These initiatives support PPC’s longer-term competitiveness, decarbonisation ambitions and sustainable value creation objectives.
Strategic Roadmap: Path to sustainable growth
PPC's turnaround strategy follows a multi-year roadmap. Having established the foundations during FY25, the Group is focused on embedding the turnaround through FY26 and FY27 while advancing initiatives that strengthen operational performance, commercial execution and capital discipline. These priorities are expected to position the business for further sustainable growth and improved returns from FY28 onwards.
Strategic focus | FY25: Rebuild foundations and stabilise operations | FY26 – FY27: Embed turnaround execution and operational discipline | FY28: Drive sustainable growth and competitiveness |
Operational and commercial priorities | Addressing operational gaps and establish a stronger platform for the turnaround strategy. | Embedding operational excellence, commercial discipline and execution consistency across the business. | Achieving sustainable growth, improved competitiveness and long term returns. |
Key focus areas |
operational projects |
|
|
Our material matters
Determining what is important
Material matters represent the key factors that significantly influence PPC’s ability to create and sustain value over the short-, medium- and long-term. These matters include financial, operational, environmental, social and governance (ESG) considerations that affect business performance, stakeholder relationships and long-term competitiveness. Addressing these matters supports disciplined decision-making, strengthens resilience and enables PPC to respond more effectively to a changing operating environment.
During FY26, PPC refreshed its material matters assessment to strengthen alignment with evolving business priorities, stakeholder expectations and the next phase of the Awaken the Giant turnaround strategy. The review process considered changes in the operating environment, regulatory developments, operational priorities, sustainability considerations and emerging risks affecting PPC’s markets and operations. Insights from this process continue guiding strategic planning, capital allocation, operational priorities and long-term value creation objectives.
PPC applies a double materiality lens to assess material matters from two perspectives:
Financial materiality
How these matters affect PPC’s ability to create, preserve and sustain value.
Impact materiality
How PPC’s operations influence the economy, society, communities and the environment.
This approach provides a balanced view of risks and opportunities while supporting stronger alignment between business performance, sustainability priorities and stakeholder expectations.
Our materiality determination process
PPC’s materiality determination process supports the identification, prioritisation and management of matters that have the greatest influence on the sustainability and competitiveness of the business.
Inputs
Process
Evaluation of PPC’s operating environment, strategic priorities, stakeholder expectations and key resources to identify material matters relevant to long-term value creation.
Analysis of the impact of PPC’s operations and strategic initiatives on business performance, society and the environment.
Ranking of material matters based on their significance to PPC, stakeholders and longterm strategic priorities.
Alignment of prioritised material matters with decision-making, reporting and strategic planning processes.
An integrated approach was applied to identifying material matters influencing business performance, sustainability and longterm resilience.
Existing and emerging risks, opportunities and sustainability considerations were assessed across financial and impact materiality perspectives.
Workshops, management engagements and executive reviews were conducted to validate and prioritise material themes and issues.
Material matters were embedded into PPC’s governance, reporting, risk management and broader decision-making frameworks.
Our material matters
Our material matters
Our material matters are grouped under seven themes.
Description FY26 performance
1
PPC remains focused on strengthening market competitiveness and improving profitability through disciplined commercial execution.
PPC remains focused on strengthening market competitiveness through operational excellence, disciplined commercial execution, customer responsiveness and strategic investment. The Group also continues supporting industry engagement aimed at promoting a more level playing field for local manufacturers, including the equalisation of carbon tax treatment between imported and locally produced cement products, the enforcement of cement standards and addressing the impact of imported cement and clinker on domestic producers. These matters are important to the long-term sustainability, investment attractiveness and competitiveness of local cement manufacturing.
2
Operational efficiency remains central to PPC’s turnaround strategy and long-term sustainability objectives, with focus placed on cost discipline, operational reliability, process optimisation and disciplined capital allocation.
3
Macroeconomic uncertainty, constrained infrastructure investment, inflationary pressures and global instability impacting supply chain and energy costs.
4
Strengthening leadership capability, operational accountability and workforce effectiveness remains important to PPC’s long-term resilience and operational sustainability.
Operational improvement initiatives focused on procurement optimisation, production reliability, logistics efficiencies and disciplined cost management across operations. PPC continued implementing the Plant Performance Improvement Plans (PPIP), process optimisation initiatives and operational simplification measures aimed at improving efficiency, operational stability and long-term competitiveness. Progress also continued on strategic projects such as RK3, renewable energy initiatives and broader operational modernisation programmes.
In FY26, PPC operated in a constrained and volatile regional environment characterised by muted construction demand, pricing pressure, logistics constraints and broader macroeconomic uncertainty. The Group maintained its focus on disciplined execution, pricing management, operational resilience and cost competitiveness to strengthen performance.
PPC strengthened leadership capability, succession readiness and workforce effectiveness during FY26 through targeted recruitment, leadership appointments and workforce capability initiatives. The Group completed a critical leadership role analysis and continued investing in graduate programmes, internships, learnerships and multiskilling initiatives. The Employee Engagement Pulse Survey achieved a 93.3% participation rate, while Awaken the Giant behavioural imperatives continued to be embedded across the business to strengthen accountability, ownership, urgency and performance alignment.
5
Maintaining safe, healthy and supportive workplaces remains fundamental to PPC’s operational performance and sustainability objectives.
6
PPC continues advancing environmental stewardship through decarbonisation initiatives, operational efficiency improvements and strengthened environmental management practices.
PPC retained ISO 45001:2018 certification during FY26 and reported no cases of silicosis for the 15th consecutive year. Following a contractor fatality and a lost-time injury during the year, greater emphasis was placed on behavioural safety, near-miss reporting, workplace observations and proactive risk identification processes. Employees also continued accessing wellness initiatives, mental health support and Employee Assistance Programme services across the business.
PPC continued strengthening environmental stewardship through emissions reduction, operational efficiency and environmental compliance initiatives. Key achievements included commissioning the Selective Non-Catalytic Reduction (SNCR) system at De Hoek, progressing RK3, renewing key environmental licences and maintaining ISO 14001 certification across South African and Zimbabwean cement operations. The Group also strengthened emissions monitoring, renewable energy initiatives and operational efficiency programmes aligned to its long-term decarbonisation objectives.
7
Governance, compliance and ethical business practices Strong governance supports ethical leadership, accountability, regulatory compliance and long-term value creation across the business.During FY26, the board approved PPC’s formal ESG framework, strengthening the integration of sustainability considerations into governance, operational execution and strategic planning. PPC continued enhancing sustainability oversight, risk management and accountability processes while maintaining alignment with evolving governance and disclosure expectations. The Group also strengthened internal governance, operational accountability and compliance monitoring processes across all operations.
PPC has embedded a proactive risk culture that integrates strategic, operational and functional risk management across the Group. Risk management is integrated into business planning, operational decision-making and performance monitoring processes to support disciplined execution of the Group’s turnaround strategy.
The Group’s enterprise risk management (ERM) framework supports the identification, assessment and mitigation of risks and opportunities across PPC’s operating environment. This approach enables improved visibility of emerging risks, clearer accountability and more effective mitigation planning across operations and functions.
During FY26, PPC continued strengthening its risk management approach to align with the priorities of Awaken the Giant, with greater focus placed on operational discipline, leadership accountability, process simplification, execution consistency and long-term sustainability. The refreshed risk approach is designed to support faster risk identification, measurable accountability and more effective decision-making across the business.
The FY26 risk assessment process included structured engagements across operations, functions and Exco to improve alignment on the Group’s most material risks and mitigation priorities. Focus areas included operational resilience, market competitiveness, skills capability, safety, compliance, energy security, project execution and broader external risks affecting PPC’s operating environment.
Combined assurance
PPC applies a combined assurance approach to strengthen accountability, improve oversight and support effective risk management across the Group. The model integrates operational management, oversight functions, internal assurance and external assurance providers to support effective governance and control processes.
1 | First line: Operational management Operational management and line leadership are responsible for identifying, assessing, managing and monitoring risks within their respective areas of accountability. This includes implementing controls, monitoring mitigation actions and escalating material risks where necessary. |
2 | Second line: Oversight functions Key oversight functions together with Exco are responsible for monitoring the effectiveness of controls and supporting risk governance processes across the business. The risk function consolidates and reports on Group-wide risks and mitigation actions. |
3 | Third line: Internal audit Internal audit provides independent assurance on the adequacy and effectiveness of internal controls, governance processes and mitigation measures across the Group. |
4 | Fourth line: External assurance providers External assurance providers support independent validation across selected financial, operational and compliance-related areas as part of PPC’s broader assurance framework. |
Risk governance
Executive management is responsible for overseeing risk management across the Group and reports to the Audit, Risk and Compliance Committee (ARCC). Risks are continuously identified, assessed and monitored, with the Group risk register reviewed periodically to reflect changing operational and external conditions.
Emerging and existing risks are presented to ARCC, which reviews risk trends, mitigation effectiveness and risk prioritisation. The board retains oversight of risk appetite, material risks and strategic risk responses based on recommendations from ARCC and management.
New capacity and increased market competition
Risk ranking
1
Mitigating actions
Accelerate cost and productivity improvements ahead of new capacity
Continue implementing operational improvements to benchmark level across plants
Protect value through margin management and leverage PPC brand
and footprint
Following completion of the RK3 integrated plant, PPC will have three
competitive integrated plants
Strengthen customer partnerships to defend and grow profitable market share
Opportunity
A disciplined commercial strategy and improved operational competitiveness position PPC to strengthen customer relationships, protect margins and improve long-term market positioning.
Description
New entrants, imported cement and additional production capacity across regional markets will increase pressure on pricing, market share and profitability. In a constrained infrastructure construction environment, maintaining competitiveness requires stronger commercial execution, operational efficiencies and clear market differentiation.
Operational employee competence and critical skills
Risk ranking
2
Mitigating actions
Strengthen targeted recruitment for critical operational and technical roles
Continue with upskilling through on-the-job training, coaching and mentorship
Strengthen succession planning and leadership development exposure
Align performance management with operational accountability and delivery
Expand specialist technical and systems training across operations
Opportunity
Strengthening internal capability creates a pipeline of skilled, accountable employees that supports operational stability, leadership continuity and longterm business performance.
Description
Limited operational capability and shortages of critical skills may result in equipment failure, operational inefficiencies, production losses and increased maintenance costs. Dependence on external expertise in certain areas also creates continuity and execution risks.
Regulatory compliance and mining licence obligations
Risk ranking
3
Mitigating actions
Strengthen compliance monitoring and operational accountability
Continue engaging regulatory authorities across operations
Maintain environmental, safety and mining compliance management systems
Conduct regular compliance audits and risk reviews
Strengthen leadership awareness of regulatory obligations and compliance requirements
Opportunity
Strong compliance management and proactive stakeholder engagement strengthen PPC’s social licence to operate, governance credibility and long-term operational sustainability.
Description
Non-compliance with mining licence obligations, environmental requirements and broader regulatory obligations may result in operational disruption, penalties, reputational damage or licence-related risks.
Inconsistent enforcement by The Department of Mineral Resources and Energy (DMRE) can result in inadvertent non-compliance.
Production capacity and operational reliability
Risk ranking
4
Mitigating actions
Continue implementing preventative maintenance programmes
Improve clinker and cement buffer management
Strengthen plant reliability and operational efficiency initiatives
Improve production planning and operational coordination
Monitor critical equipment performance and downtime trends
Leverage PPC's complementary asset footprint
Opportunity
Improved operational reliability and production efficiency support stronger customer service, lower operational costs and enhanced competitiveness.
Description
Equipment reliability challenges and operational inefficiencies may affect production throughput, operational stability and customer service levels. Operational disruptions may also increase production costs and place pressure on margins. .
Risk ranking 5 | Safety and operational risk exposure |
Mitigating actions
Strengthen visible felt leadership and operational safety engagement
Expand behavioural safety and near-miss reporting initiatives
Conduct regular compliance audits, inspections and risk assessments
Continue operational safety training and awareness programmes
Strengthen consequence management for safety non-compliance
Opportunity
A strong safety culture improves workforce wellbeing, operational discipline, employee engagement and long-term organisational resilience.
Description
Cement manufacturing operations expose employees, contractors and surrounding communities to physical, mechanical, chemical and environmental hazards. Safety incidents may result in injury, operational disruption, reputational damage and regulatory consequences.
Information technology and cyber security
Risk ranking
6
Mitigating actions
Continue strengthening cyber security monitoring capabilities
Improve user capability and systems training
Conduct periodic testing of incident response and business continuity processes
Strengthen IT governance and system oversight
Expand automation and digitisation initiatives where appropriate
Opportunity
Improved digital capability and stronger system governance support operational efficiency, decision-making quality and long-term business resilience.
Description
Cyber threats, end-user capability and capability gaps within the Information Technology (IT) technical environment may affect operational continuity, reporting integrity and broader business resilience.
Reliance on state-owned enterprises and infrastructure constraints
Risk ranking
7
Mitigating actions
Progress renewable energy and wheeling projects across operations
Maintain contingency plans for operational disruptions
Continue engaging Eskom and logistics stakeholders
Expand alternative logistics and distribution solutions
Maintain operational stock management controls
Opportunity
Investments in energy resilience and logistics optimisation support operational stability, cost management and long-term competitiveness.
Description
Operational continuity remains exposed to unreliable electricity supply, rail logistics disruptions and escalating utility costs. These constraints may affect production continuity, distribution efficiency and operational costs.
Macroeconomic and political instability
Risk ranking
8
Mitigating actions
Continue implementing cost optimisation initiatives
Strengthen pricing discipline and margin management
Monitor macroeconomic and infrastructure trends across markets
Strengthen cash preservation and working capital management
Maintain disciplined capital allocation processes
Opportunity
Operational discipline, pricing management and strategic agility position PPC to respond more effectively to changing market conditions and emerging infrastructure opportunities.
Description
Weak economic growth, delayed infrastructure roll-out, inflationary pressures and political uncertainty across global and regional markets continue affecting demand, investment confidence and broader market activity. These conditions continue placing pressure on volumes, margins and long-term planning certainty.
PPC INTEGRATED ANNUAL REPORT 29
Complexity of business processes
Risk ranking
9
Mitigating actions
Continue reviewing and simplifying operational processes
Strengthen control self-assessment processes
Improve operational governance and accountability structures
Expand automation and digitisation initiatives
Benchmark critical processes against industry standards
Opportunity
Simplified processes support faster decision-making, improved accountability and stronger operational efficiency across the Group.
Description
Complex or inefficient processes may reduce operational agility, weaken internal controls and create inefficiencies across the business. Process complexity may also increase decision-making delays and operational risk exposure.
RK3 project execution and delivery
Risk ranking
10
Mitigating actions
Strengthen project oversight and operational governance
Expand quality assurance and inspection controls
Strengthen contractor safety and compliance management
Continue monitoring project timelines and delivery milestones
Maintain active engagement with contractors and project stakeholders
Opportunity
The successful delivery of the RK3 project will strengthen PPC’s operational competitiveness, energy efficiency, production capability and long-term sustainability.
Description
Execution risks associated with the RK3 integrated plant project may affect timelines, quality standards and operational readiness. Contractor management, safety oversight and quality assurance remain important focus areas during implementation.
Stakeholder engagement
Stakeholder relationships are fundamental to PPC's ability to create sustainable long-term value and maintain its licence to operate. Our stakeholders include the individuals, communities and organisations that influence, or are influenced by, our activities. We engage regularly to understand their evolving needs, expectations and concerns, helping us identify risks, strengthen resilience and respond to emerging opportunities. These insights inform decision-making, shape strategic priorities and support the delivery of sustainable value for both the business and its stakeholders.
Our stakeholder engagement principles
In FY26, we continued to strengthen our stakeholder engagement approach to support informed decision-making, enhance accountability and build long-term relationships based on trust. Ongoing engagement with our stakeholders provided valuable insight into emerging risks, opportunities and evolving expectations, helping us respond more effectively to changing market, social and regulatory dynamics. These insights support strategic decision-making, strengthen business resilience and contribute to the creation of sustainable value for both PPC and its stakeholders.
Stakeholder engagement framework
Our approach to stakeholder engagement is guided by four core principles: transparency and accountability, alignment, responsiveness and collaboration. We seek to build constructive relationships through open communication, meaningful dialogue and timely responses to stakeholder concerns. Regular engagement enables us to better understand stakeholder priorities, assess the effectiveness of our interactions and identify opportunities to strengthen relationships. The insights gained help shape our strategy, risk management processes and reporting, supporting the successful execution of our business objectives.
Transparency and accountability We communicate openly and consistently about our strategy, performance, risks and priorities to build trust and maintain stakeholder confidence. | Alignment We engage with stakeholders to understand their expectations and identify areas of mutual interest, supporting informed decision-making and longterm value creation. | Responsiveness We listen to stakeholder feedback and respond in a timely and constructive manner, helping us address concerns, manage risks and adapt to changing expectations. | Collaboration We work with stakeholders to strengthen relationships, support shared objectives and create sustainable value for our business, communities and broader society. |
The value we want to create for each stakeholder
Providers of capital and insurers | Governments and regulators | Suppliers and local business | Employees and labour unions | Customers | Industry associations, media, communities and NGOs |
We are building a competitive, financially resilient business that delivers sustainable returns and long-term value. Through disciplined capital allocation, strong cash generation and transparent reporting, we seek to maintain stakeholder confidence and support continued investment in PPC. | We contribute to economic development through responsible business practices, regulatory compliance, employment creation and investment in infrastructure and industrial growth. We engage constructively with policymakers and regulators to support sustainable development in the markets where we operate. | We build ethical, mutually beneficial partnerships that strengthen supply chain resilience, support operational excellence and create shared economic value. Our approach includes responsible procurement, supplier development and support for local enterprise participation. | We aim to create a safe, inclusive and performance-driven workplace where employees are empowered to contribute to PPC's success. Through skills development, leadership capability, employee wellbeing and constructive labour relations, we support sustainable business performance and long-term workforce resilience. | We strive to be the partner of choice by delivering high-quality products, reliable supply and responsive service. Our focus is on understanding customer needs and providing solutions that support their growth and success. | We engage openly and constructively with stakeholders to build trust, strengthen relationships and support positive social and economic outcomes. Through community investment, social and labour plan commitments and strategic partnerships, we seek to create shared value and contribute to sustainable development. |
PPC INTEGRATED ANNUAL REPORT 31
Stakeholder engagement
Our response in FY26
Providers of capital and insurers (including investors and banks) |
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Suppliers and local business |
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4 Performance review
This section provides an overview of PPC’s financial performance and capital stewardship during FY26. It includes the CFO’s report on the Group’s financial results, capital allocation and financial position, as well as a review of performance across the six capitals, highlighting how PPC creates, preserves and realises value for stakeholders over the short-, medium- and long-term.
CFO’s report 34
Performance review 36
PPC INTEGRATED ANNUAL REPORT 33
CFO's report
FY26 represents another important milestone in PPC's turnaround journey. The Group delivered a second consecutive year of meaningful improvement in profitability, cash generation and return on invested capital. This despite a market environment characterised by subdued economic growth and limited infrastructure investment. The results demonstrate that the actions taken over the past two years to improve competitiveness, simplify operations and strengthen cost discipline are translating into sustainable financial outcomes. Importantly, this progress has been achieved without relying on significant market growth, highlighting the resilience of the business model and the strength of PPC's underlying operations.
Brenda Berlin*
CFO
30 June 2026
The year was also defined by disciplined capital allocation and continued investment in PPC's future profitability growth. While maintaining a strong balance sheet and increasing returns to shareholders, the Group advanced the construction of the RK3 integrated plant, one of the most significant strategic investments in its recent history. Combined with ongoing operational improvements and strong cash generation, these investments position PPC to capture future opportunities, improve long-term competitiveness and create sustainable value for shareholders and other stakeholders.
Highlights
Revenue increased by 3,9% to R10,3 billion
The increase in cost of sales was contained at 2%
Administration and other operating expenses decreased by 19%, reflecting improved cost discipline
EBITDA increased by 31% to R2,1 billion, with margins expanding to 20,3%
Fair value and foreign exchange movements were impacted by R148 million in realised and unrealised foreign exchange losses on RK3
Profit before tax increased by 61% to R1,3 billion
Earnings per share increased to 56 cents, while headline earnings per share increased to 50 cents
The Group continued to invest in its equipment and spent R413 million on maintenance expenditure, excluding expenditure spent on RK3
R709 million was spent on RK3 during the year
Cash holdings increased to R1,1 billion, with the South Africa and Botswana group remaining in a net cash position
The board declared a dividend of 30,2 cents per share, representing a 72% increase on the prior year.
The Group remains well positioned for future profitability growth as construction of the RK3 plant progresses towards completion in FY27
Revenue resilience
Group revenue increased by 3,9% to R10,3 billion, supported by strong growth in Zimbabwe and resilient performance across the South African and Botswana operations. .
Operational efficiencies and cost discipline
The benefits of the turnaround strategy continued to materialise through disciplined cost management and operational efficiencies. Cost of sales increased by only 2%, while administration and other operating expenses declined by 19%. These improvements reflect a structurally lower-cost base, improved operational execution and ongoing focus on productivity and efficiency across the business.
Strong EBITDA growth
EBITDA increased by 31% to R2,1 billion, with margins expanding to 20,3%. A non- core property was sold during the year. Excluding the profit of R139 million realised on this disposal, EBITDA increased by 21,8% and margins improved to 18,9%. This performance demonstrates the strength of the underlying business and the operating leverage created through the successful execution of PPC's turnaround initiatives.
CFO's report
Asset optimisation
No impairments were required at a cash-generating unit level during the year, reflecting the improved operational performance of the business.
Efficient capital management
Finance costs decreased by 22,6% to R82 million from R106 million in the prior year, benefiting from lower interest rates and improved pricing on borrowing facilities. Interest income remained strong at R58 million, supported by healthy cash balances. The Group continues to maintain a disciplined approach to capital management while supporting strategic investment requirements.
Enhanced shareholder returns
The significant improvement in profitability translated into stronger earnings for shareholders. Earnings per share increased to 56 cents from 32 cents in the prior year, while headline earnings per share increased to 50 cents from 40 cents. Earnings were impacted by realised and unrealised foreign exchange losses associated with hedging arrangements for the RK3 project, reflecting prudent management of foreign currency exposure linked to this major capital investment.
Balance sheet strength
PPC maintained a strong financial position while continuing to invest in future growth. Gross debt increased modestly by R48 million to R550 million, including funding utilised for the RK3 project, while cash holdings increased to R1.1 billion. The South Africa and Botswana operations remained in a net cash position, providing financial flexibility to fund strategic projects, support operations and sustain shareholder returns.
Sustainable shareholder distributions
The board approved a gross dividend of R490 million, equivalent to 30,2 cents per share, representing a significant increase on the prior year. The dividend reflects the Group's strong cash generation, improved profitability and confidence in future performance, while maintaining prudent gearing during the construction of the RK3 integrated plant.
Outlook and priorities
FY27 will be an important year as PPC progresses towards the completion of the RK3 project and advances key strategic initiatives across the Group. Management remains focused on improving competitiveness, expanding margins, strengthening cash generation and enhancing returns on invested capital. These priorities position PPC to continue to create sustainable value for stakeholders as well as being positioned to further benefit from a future market recovery.
Appreciation
I would like to thank our employees, customers, suppliers, lenders, shareholders and business partners for their continued support throughout the year. Their commitment and confidence have contributed to the progress achieved during FY26. I extend particular appreciation to the finance teams across the Group for their professionalism, discipline and dedication in supporting the business.
Brenda Berlin
CFO
*Brenda Berlin retired as CFO and executive director on 30 June 2026. Paulo Marques was appointed Acting Chief Financial Officer with effect from 1 July 2026, pending the appointment of Velisiwe Rozani as Chief Financial Officer on 1 October 2026
Performance against six capitals
MANUFACTURED CAPITAL
How manufactured capital supports our strategic ambition
Manufactured capital supports PPC’s strategic ambition by improving operational efficiency, strengthening cost competitiveness and enhancing supply reliability across its markets.
Investments in plant performance, logistics optimisation, renewable energy, operational technologies and strategic projects position the Group to improve margins, support infrastructure demand and create sustainable long-term value through disciplined capital allocation and operational excellence.
What manufactured capital means to PPC
Manufactured capital refers to the physical assets, infrastructure, technologies and operational systems that enable PPC to produce and distribute cement and related construction materials across Southern Africa. This includes integrated cement plants, milling facilities, blending operations, logistics infrastructure and strategic projects that support operational performance, customer service and long-term competitiveness.
Business overview
The simplified operating structure introduced during the turnaround programme continued to improve accountability, operational focus and decision-making across the Group. Greater integration between operational, commercial and strategic functions strengthened alignment between production, logistics, customer demand and capital allocation decisions.
PPC operates through three core segmentsSegment Overview
South Africa and Botswana Cement
Integrated cement manufacturing, milling, blending and distribution operations serving infrastructure, commercial and retail markets across Southern Africa.
South Africa Materials
Aggregates, readymix and ash operations supporting vertically integrated construction solutions.
PPC Zimbabwe
Cement manufacturing and distribution operations with integrated clinker and milling facilities serving retail, commercial and infrastructure sectors.
South Africa and Botswana Cement
PPC’s South Africa and Botswana Cement operations include integrated plants, milling facilities and blending operations serving infrastructure, commercial and retail markets across the region. The business continued focusing on operational recovery, commercial discipline and improving cost competitiveness in a highly competitive market environment.
FY26 Highlights
PPC improved clinker production stability and operational reliability across key cement operations through focused plant performance improvement initiatives and stronger operational discipline. | Logistics optimisation and procurement efficiencies contributed to improved cost management, operational coordination and route-to-market execution across the segment. | Commercial initiatives strengthened pricing discipline, contribution margin management and customer engagement in response to ongoing market pressure and import competition. |
Renewable energy and operational efficiency initiatives continued supporting lower energy costs and improved operational resilience across operations. | The RK3 integrated plant project progressed during the year and remains central to PPC’s longterm competitiveness and decarbonisation strategy. |
Trading conditions
The South Africa and Botswana cement market remained constrained by subdued construction demand, infrastructure delays, elevated logistics costs and increasing import competition. In South Africa, excess rainfall during the fourth quarter further disrupted construction activity in certain markets. Retail demand showed some resilience in selected markets, while infrastructure and commercial activity remained inconsistent.
Botswana operations continued facing logistical and infrastructure challenges, including transport disruptions and delivery delays. Despite these pressures, PPC maintained focus on operational stability, customer responsiveness and disciplined commercial execution.
Pricing and demand
Pricing pressure remained elevated across the cement market due to aggressive competition, excess capacity and imports. PPC continued implementing disciplined pricing and contribution margin management strategies supported by customer segmentation, route-to-market optimisation and improved commercial coordination.
The business maintained focus on protecting value rather than purely pursuing volume growth, with increased emphasis placed on customer quality, operational reliability and sustainable margins.
Financial impact
The segment delivered improved operational and financial performance during FY26 supported by stronger execution discipline, operational efficiencies and improved cost management initiatives.
Management continued prioritising operational recovery, cash generation, pricing discipline and margin improvement as part of the broader turnaround strategy.
Performance against KPIs
FY26
FY25
KPI
EBITDA R837 million R1 196 million
Free cash flow R765 million R967 million1
1 Before investment in RK3
South Africa Materials
PPC’s Materials business comprises aggregates, readymix and ash operations that support vertically integrated construction solutions across key markets. The segment continued improving operational focus, commercial discipline and integration with PPC’s core cement business during FY26.
FY26 Highlights
Aggregates operations benefited from improved demand in selected infrastructure and speciality product markets during the year. | Operational restructuring and tighter cost management initiatives improved accountability and operational efficiency across the segment. | Commercial and operational integration with PPC’s core cement business strengthened coordination, customer responsiveness and supply reliability. |
The segment continued refining its operating model to simplify customer engagement and improve operational alignment across business units. | Management maintained focus on pricing discipline, customer profitability and operational efficiency in response to subdued construction activity. |
Trading conditions
The Materials segment continued operating in a constrained market environment characterised by subdued infrastructure activity, pricing pressure and uneven construction demand. Performance during the fourth quarter was also affected by excess rainfall, which disrupted construction activity and project timelines in certain markets. Readymix operations remained particularly exposed to low activity levels in urban construction markets. Aggregates operations performed more positively in selected regions, supported by infrastructure and speciality product demand, while ash operations continued facing supply and operational challenges linked to broader market conditions.
Pricing and demand
Pricing pressure remained elevated across the segment due to weak market demand and aggressive competition. Management maintained disciplined pricing and cost management initiatives while prioritising customer retention and operational efficiency. The segment continued focusing on operational agility, supply reliability and customer service to strengthen competitiveness in difficult trading conditions.
Financial impact
Operational restructuring initiatives and tighter cost management were not enough to offset the lower revenue during FY26. Management continued focusing on improving profitability, operational efficiency and working capital management across the segment.
Performance against KPIs
KPI | FY25 | FY26 |
EBITDA Free cash flow | R24 million R 11 million R29 million (R44 million) | |
PPC Zimbabwe
PPC Zimbabwe is Zimbabwe’s leading cement manufacturer, with integrated clinker and milling facilities in Colleen Bawn and Bulawayo and a combined production capacity of approximately 1,4 million tonnes per annum. The business supplies a wide range of cement products to retail, commercial, infrastructure and public sector markets and continues to play an important role in supporting national infrastructure development and construction activity.
FY26 Highlights
PPC Zimbabwe declared a record gross dividend of R490 million | The Colleen Bawn plant continued improving clinker production stability and operational efficiency through enhanced maintenance planning, process optimisation and stronger operational discipline. | PPC Zimbabwe maintained strong production performance and customer supply reliability despite ongoing market and infrastructure constraints. |
Disciplined cost management, operational efficiencies and commercial execution supported strong cash generation and profitability during the year. | Renewable energy and operational efficiency initiatives continued supporting cost optimisation and long-term operational resilience across the business. | PPC Zimbabwe strengthened its market position through reliable supply, customer engagement and value-driven commercial execution in a highly competitive market environment. |
Trading conditions
FY26 continued presenting both operational and market-related challenges across Zimbabwe. Persistent foreign currency constraints, elevated inflationary pressures, logistics inefficiencies and intermittent infrastructure disruptions continued affecting the operating environment.
Despite these conditions, demand remained resilient across residential construction, infrastructure development and commercial projects. PPC Zimbabwe benefited from its leading market position, extensive operational footprint and strong customer relationships. These strengths enabled the business to maintain supply reliability, capture growth opportunities and deliver a strong performance despite ongoing import competition.
Pricing and demand
The Zimbabwean market remained highly competitive during FY26, with pricing pressure intensified by import competition, customer affordability constraints and ongoing macroeconomic volatility. PPC Zimbabwe maintained a disciplined pricing approach supported by customer engagement, value-based selling and contribution margin management.
Commercial initiatives during the year focused on improving customer experience, strengthening pricing consistency and reinforcing PPC Zimbabwe’s positioning as a reliable, value-driven supplier.
Financial impact
PPC Zimbabwe continued delivering a resilient financial performance during FY26 despite market and macroeconomic pressures. Operational efficiencies, disciplined cost management and improved commercial execution supported profitability and cash generation across the business.
The business maintained strong focus on protecting margins, improving operational efficiencies and strengthening foreign currency generation.
Performance against KPIs
KPI Performance (year-on-year movement)EBITDA | US$46,5 million | US$55,6 million |
Dividends paid | US$13 million | US$36 million |
Bank balance in foreign currency | US$6,6 million | US$8,1 million |
Free cash flow | US$23,2 million | US$42,6 million |
Foreign currency sales split | Forex 84% vs ZWG 16% | Forex 99% vs ZWG 1% |
Zimbabwe FY25FY26
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Disclaimer
PPC Ltd. published this content on July 24, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 24, 2026 at 14:37 UTC.
