Cement maker PPC has slashed its R5.8 billion debt to R2.6 billion, following a debt-restructuring deal with lenders and disposals.
The group has been grappling with its operations in the Democratic Republic of Congo, Zimbabwe and Rwanda. Its agreement with lenders to restructure R2.5 billion of its debt for the PPC Barnet business in the DRC was the biggest contributor to the decrease.
The agreement means that PPC Barnet will not be able to seek recourse from PPC.
Last year PPC sold its lime business for R515 million and its quarry operations in Botswana for R60 million, it also has operations in Rwanda and Zimbabwe. The group’s agreement with lenders and the disposals means that PPC could avoid a rights issue of between R750 million and R1.2 billion.
The 128-year-old company’s revenue from continuing operations grew by 3% to R8.9 billion, from R8.6 billion in the year ending 31 March 2020. Its earnings grow from R1.3 billion to R1.5 billion.
Earnings per share increased to 65 cents, from a 43 cents loss in March 2020, while headline earnings per share reduced to 3 cents, from 54 cents in March last year. Just like the previous year, PPC did not declare a dividend for 2021.
The group's share price rose more than 6% on Monday morning following the release of its results.