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    Hyperinflation accounting impacted EPS, headline earnings from Zimbabwe: PPC

    By ETimes

    PPC said it expects its 12 months earnings per share for its financial year ended March 31, 2022 to fall by 50-67% but advised shareholders that it is satisfied with a reasonable degree of certainty that the results for the period to be reported upon will differ by at least 20% from that for the previous corresponding period.

    Similarly, the group’s headline loss per share for the time period is anticipated to range between 12 cents and 15 cents, up between 20 and 0% from the 15 cents per share loss for the prior time period.

    The group has classified its PPC Lime, Botswana Aggregates and PPC Barnet DRC businesses as discontinued operations in compliance with IFRS 5 – Non-current assets held for sale.

    “EPS from continuing operations for both the period and the prior period is impacted by material movements in non-cash items, being fair value and foreign exchange movements, impairments and impairment reversals,” said the company in a statement.

    “In addition, both EPS and headline earnings from Zimbabwe are impacted by hyperinflation accounting in terms of IAS 29.”

    Many listed firms have failed to publish in time as the hyperinflation environment is a headache for accountants and auditors.

    In contrast to the 65 cent profit per share recorded during the prior period, ongoing operations are forecast to produce EPS for the period of between 3 cents and 7 cents per share.

    Compared to the prior period’s headline earnings per share of 3 cents, the period’s headline loss from continuing operations is anticipated to range between 1 cent and 5 cents per share.

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    EBITDA is anticipated to be between 0% and 4% lower than comparable EBITDA from the prior period, excluding PPC Zimbabwe’s EBITDA.

    Between 4% and 8% more cash was earned from ongoing operations than in the previous period, according to the company.

    “The financial information on which this trading statement is based is the responsibility of the directors of the Company and has not been reviewed or reported on by the Group’s independent external auditor,” it said.

    Accordingly, the group’s audited annual financial statements for the year ended 31 March 2022 are expected to be released on or about 27 June 2022 – Harare

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