Maple Leaf Cement Factory Ltd posts PKR3.6m loss

Pakistan’s Maple Leaf Cement Factory Ltd (MLCF) has reported a loss of PRK3.559m (US$226.3m) for the year ended 30 June 2020.

Brokerage Arif Habib Ltd in a report said, “Topline of the company witnessed a dip of 21 percent YoY to PKR6bn in 4QFY20 as its dispatches tumbled 20 per cent YoY to 1.02Mt tagged with lower retention prices in the region.”

In FY20 revenue reached PKR29.11bn, up 12 per cent YoY as lower retention prices offset the impact of a 41 per cent YoY hike in sales to 5.163Mt, the brokerage added. Given the recognition of the augmented depreciation charge on its new plant, lower cement prices and rupee depreciation, 4QFY20 margins dropped to -2.1 per cent. In FY20 margins declined by 19 per cent to two per cent.

The company’s finance costs increased 143 per cent YoY to PKR538m in 4QFY20, due to higher borrowing for the expansion project with interest rate hikes by the central bank.