Bestway Cement has announced after tax profits of PKR7.45bn (US$71m) in the nine month period to 31 March 2016, a 34 per cent increase YoY. Total sales rose to PKR24.42bn (US$233m) – an increase of 11 per cent YoY.
Profits rose on the back of lower administrative and distribution costs, which fell by 2.4 per cent and 17.3 per cent respectively to PKR289m (US$2.8m) and PKR439m (US$4.2m). Finance costs increased sharply to PKR1.3bn (US$12.4m).
Bestway’s sister concern, Pakcem Ltd, also earned a profit after tax of PKR1.5bn (US$14.3m) for 9MFY2016, up 843 per cent YoY. Pakcem’s net sales stood at PKR8.48bn (US$81m) up 6.5 per cent YoY. Like Bestway, falling distribution and administrative costs helped the firm increase its profitability.
The Bestway Group acquired an 88 per cent shareholding in Lafarge Pakistan (now re-branded as Pakcem) for a total consideration of US$264m. Pakcem’s cement plant has a capacity of 2.4Mta and the acquisition has resulted in Bestway Cement becoming Pakistan’s largest cement producer, with a production capacity of 8Mta.
