Pioneer Cement and DG Khan Cement report profit falls in 1HFY19

Two more leading cement companies of Pakistan announced their financial results for 1HFY19 (July-December 2018) to the Pakistan Stock Exchange (PSX). DG Khan Cement Co Ltd (DGKC) and Pioneer Cement Ltd (PCL) reported falls in profit despite increased cement sales due to the negative impact of the devaluation of the Pakistani rupee, amid higher coal prices and other factors during this period. 

DG Khan Cement
While announcing its financial results for the half-year ended 31 December 2018, DGKC declared a net profit earning of PKR1.74bn (US$12.4m), down by 53 per cent YoY, as compared to PKR 3.73bn earned in the same period last year.

According to DGKC, the company's net sales in the 1HFY18-19 increased by 25 per cent to PKR19.76bn from PKR15.76bn during this period. DGKC incurred higher administrative expenses of PKR311m against PKR295m in the 1HFY17-18. Distribution cost was also on higher side to PKR648m against PKR460m in the year-ago period.

Pioneer Cement
PCL declared a net profit of PKR526m during 1HFY19, down by 28.52 per cent YoY, as compared to PKR737m earned in the same period last year. PCL's net sales during 1HFY18-19, increased by PKR161.63m to PKR5.05bn.The company incurred a higher distribution cost of PKR86m and administrative expenses of PKR56m when compared with year-ago distribution and administrative costs of PKR69m and PKR43m, respectively.