Bestway reports 31% drop in FY19-20 turnover

Pakistan-based Bestway Cement reported a gross turnover of PKR63.7bn (US$383.4m) in the financial year ended 30 June 2020, down 19 per cent YoY when compared with PKR79bn in FY18-19. Net turnover fell 31 per cent from PKR53.6bn to PKR37.1bn. Gross profit for the year decline from PKR16bn in FY18-19 to PKR1.1bn in FY19-20. Profit after tax dwindled to PKR0.5bn from PKR10.1bn in the previous financial year.

The declining results have been attributed by a significant drop in prices, a substantial increase in federal excise duty, lower sales volumes and higher input costs. In addition, financial charges increased to PKR2.2bn due to lower cash generation from operations and higher interest rates.

Cement production fell 10 per cent YoY to 7.264Mt as the company saw a drop in domestic and export sales. Clinker output declined three per cent to 6.419Mt.

While the COVID-19 pandemic presented challenges to the company, all its four plants remained fully operational throughout the pandemic.