Zim's currency change delays PPC's results


Currency reforms in Zimbabwe have forced cement maker, PPC Limited, to delay announcing its results for the year ended March 31, 2019, which were due on Wednesday.

Zimbabwe, where PPC has operations, this week introduced new currency measures that saw the use of foreign currency to make local transactions being outlawed.

The southern African country has been using a multi-currency system since 2009, but limited export earnings and ballooning imports made the use of foreign currency unsustainable.

The banning of foreign currencies, however, has however forced corporates and other economic players to rethink their strategies and also figure out how to account for their earnings and balance sheets.

"Shareholders are advised that the anticipated release of the Reviewed Financial Results for the year ended March 31, 2019 ("Annual Results") has been delayed to allow for the completion of the review by the company´s auditors," said PPC in a statement released on Wednesday.

"This delay is due to considerations relating to fair value adjustments of Zimbabwean financial assets that could range between R0 - R50m," reads the statement. 

What’s at stake?

PPC Zimbabwe reported a cash balance of US$63m at the end of September 2018, which was reduced to US$60m by a debt repayment at the end of February 2019.

"The exchange rate will, however, apply only to a portion of the US$60m cash balance, amounting to US$30m - US$35m," said PPC in March.

"The remaining balance, including US$16m in dividends and US$5m rights offer proceeds, qualifies as legacy debt due to PPC RSA which is awaiting repatriation."

PPC is the largest cement producer in Zimbabwe and operates three plants with a combined capacity of 1.4 tonnes per year.  

In March this year, PPC viewed "the introduction of a formalised floating foreign exchange market in Zimbabwe as a positive development toward curbing the high inflation and excessive premiums created by the parallel exchange rates."

"The exchange market should result in a more efficient allocation of foreign currency, removing the distortions that were impacting the market, and facilitate the repatriation of cash in the medium to long term."

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders