Cement maker PPC told investors late on Thursday that its headline earnings per share in year to March were expected to drop by between 85% and 95% from a year ago.
The company, which was considering a tie-up with competitor Afrisam, attributed the substantial drop in earnings to higher financing costs, the company said on the JSE’s news service.
A weaker trading environment in its businesses in South Africa and Botswana and, coupled with a stronger rand, also negatively affected Zimbabwe’s contribution in rand terms.
PPC and AfriSam are searching for growth opportunities on the continent to offset a tough South African market, which is under pressure from low demand, oversupply and rising competition.
© Business Day