Lucky Cement records net profits of PKR5.8bn for 2H18

Lucky Cement Ltd reported net profit after tax of PKR5.80bn (US$41.47m) after taking out PKR0.34bn attributable to non-controlling interests for the half year ended 31 December 2018.

The company achieved a gross turnover of PKR67.85bn which is 13.5 per cent higher when compared to the same period last year's turnover of PKR59.77bn.

Overall sales volumes grew by 6.8 per cent to reach 4.01Mt during the current half-year under review. Local cement sales volume registered a decline of 6.8 per cent in the current half-year (north 10.8 per cent and south 2.1 per cent) to reach 2.99Mt in comparison to 3.21Mt in the same period last year.

Export sales volumes more than doubled in the current half-year and improved by 109 per cent to reach 1.02Mt when compared to 0.49Mt during the same period last year.

Gross sales revenue increased by 6.2 per cent to PKR34.89bn, compared to PKR32.85bn reported during the equivalent year-ago period. The increase in revenue was mainly due to higher export volumes for clinker and cement. Furthermore, Lucky Cement recorded net profit after tax of PKR5.5bn, which is 16 per cent lower when compared to same period last year.

Lucky Cement also shared progress on its 2.6Mta brownfield plant expansion at its Pezu plant and the 1.2Mta greenfield clinker project at Samawah, Iraq. In addition, the company also reported progress on its investment projects of a 660MW supercritical coal-based power project at Port Qasim and automobile manufacturing plant under licence from Kia Motors Corp.

Outlook
Muhammad Yunus Tabba, Lucky Cement's chairman and director and Muhammad Ali Tabba, chief executive and director said in a notification to Pakistan Stock Exchange (PSX) that the outlook for the cement industry remains promising and Lucky Cement remains hopeful for improvement in domestic sales going forward on account of government's key initiatives to build both small and meso-capacity/multipurpose water reservoirs/dams and multi-million housing schemes to construct affordable houses for the public.

Meanwhile, export sales are anticipated to remain strong in view of favourable market dynamics and increasing demand for clinker in other countries in the region.