HARARE – Cement manufacturing company Portland Pozzolana Cement (PPC) has realised a substantial increase in its revenue from July to September 2020 from 20% to 25% after having experienced muted sales in April and May 2020 due to COVID-19 restrictions.
The trend continued in October with strong cement sales volume experienced for the month up to 15-20% compared to the same period last year.
These sales are primarily retailed as increases in income due to reduced flexible spending on other items due to reduced interest rates and the various social relief grants.
In a statement by PPC, the company starts experiencing the positive impact of increased infrastructure spending, which it hopes will carry the strong demand once retail sales volume normalizes.
In aggregate, total cement volumes sold also showed double-digit growth from June to September 2020 as compared to the same period last year.
The month of October 2020 has reflected more moderate growth in cement volumes for PPC at approximately 15-20% as compared to October 2019.
However, despite the continued positive sales moment, PPC remains cautious on the outlook for the rest of the financial year given the ongoing health crisis and its resultant impact on economic activity.
Meanwhile, PPC’s initiatives remain focused on cash preservation, improving cost competitiveness by lowering operational costs, positioning the business for recovery, and improving internal controls and accountability.
Amanda Ellen Jojo – Business Mail