JSE-listed construction materials company PPC has extended the contract of its CEO Matias Cardarelli to March 31, 2030.

Cardarelli has served as CEO since December 2023 and, in the past two and half years, the company has achieved significant progress in its strategy, PPC says.

Since his appointment, PPC has been fundamentally repositioned. The group has delivered consecutive step changes in earnings, margins, cash generation and returns on invested capital.

Additionally, the company’s market capitalisation has more than doubled. This has been achieved without any improvement in the South African operating environment and is the outcome of strategic clarity, operational performance improvement and cost and capital discipline.

With the turnaround only half complete, the value delivered to date has come largely from a significant change in the way the business is run, a culture reset, and cost and commercial discipline.

The larger part of the opportunity lies ahead, namely completing and commissioning the new integrated cement plant in the Western Cape (RK3), with the next step change in performance related to this anticipated in the 2028 financial year; the continued operational improvement of the South African plants; and the optimisation and growth initiatives available in Zimbabwe.

Realising this value depends on sustained and consistent execution, PPC says.

“The board is firmly of the view that continuity of leadership through this phase is in the best interests of shareholders and that the right person to complete this turnaround is the person who started it,” says PPC chairperson Jabu Moleketi.

“Under Matias’ leadership, PPC has achieved tremendous progress, specifically with the group’s strategic turnaround, as demonstrated in the financial results of the past two years. His leadership has transformed the business, built a strong leadership team, started to create a real high-performance culture and established a solid platform for growth.

“Matias’ hands-on leadership is extremely important as the company continues to unlock the value that we believe PPC has and position the company sustainably for the future,” he adds.

The past 32 months have demonstrated what PPC can deliver with an experienced team, a well-defined strategy and a healthy and transparent organisational culture, Cardarelli says.

“What excites me most, however, is what is ahead of us: the next phase of our operational and commercial turnaround, which represents opportunities for a further step change in PPC’s performance.”

The operational and commercial turnaround includes the startup of the new integrated cement plant in the Western Cape, the ramp-up of investments in renewable energies and the prospects for a new integrated cement plant in Zimbabwe, among other initiatives.

“I am committed to seeing the Awaken the Giant strategy through to completion, alongside a team I believe in,” says Cardarelli.