Investment idea: PPC

Channel:

PSG Financial Services

Subscribers:

3,870

Published on February 29, 2024 2:21:22 PM ● Video Link: https://www.youtube.com/watch?v=HA_JFSBQddQ

Duration: 2:07

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The latest Company Update Report looks at PPC limited and how they have been faring in recent months. Below are the key takeaways:
- Management’s shake-up with the new group CEO, Matias Cardarelli, has strengthened the Executive Committee (Exco) with several new roles to improve the profitability and sustainable return on capital in South Africa.
- International businesses were resilient but South Africa and Botswana are experiencing challenges in a competitive market.
- The company has successfully disposed of its 51% stake in CIMERWA (Rwanda) for $42.5 million as of 25 January 2024.
- There has been an increase in revenue due to bi-annual increases of 8.8%, but cost pressures persist.
- Cash generation is strong and is supportive of the balance sheet.
Our research supports a hold recommendation.