Kohat and Fecto Cement report fall in profit

Kohat Cement and Fecto Cement have announced their financial results for the year ended 30 June 2019. Both companies' profits declined, mainly due to  increase in cost of sale and other factors.

Kohat Cement Co Ltd (KOHC) declared a net profit of PKR2.4bn (US$15.27m), down by 17.2 per cent YoY, as compared to PKR2.9bn reported in the same period last year. However, sales increased by 16.5 per cent to PKR15.64bn YoY, as compared to PKR13.43bn in the same period last year. 

KOHC incurred higher distribution expenses of PKR118.27m against PKR96.878m in the same period last year. The administrative expenses also increased to PKR254.16m from PKR203.14m in the same period last year.

Meanwhile, Fecto Cement Ltd (FECTC) has earned net profit of PKR88m as compared to PKR441m earned in the same period last year. The profit hugely dropped by 80 per cent YoY basis. Accounts figure attributes fall in profit to increase in cost of sale from PKR3.8bn to PKR4.14bn during this period.

The administrative expenses slightly decreased to PKR290m from PKR295m during the same period last year. FECTC incurred a higher distribution cost to PKR203m against PKR195m in the same period last year. The company sales also slightly dropped by 3.3 per cent PKR 4.74bn compared to PKR4.9m during the same period last year.