Fauji Cement sees 17% fall in net sales

Pakistan’s Fauji Cement has released its full annual report for the FY19-20 period, ending 30 June 2020, showing a 17.1 per cent YoY fall in net sales to PKR17.23bn (US$103.7m) from PKR20.79bn. EBITDA also declined to PKR1.79bn from PKR6.04bn in the FY18-19.

The company’s operating profit dipped to PKR11.67m from PKR4.46bn in the previous fiscal year. It also saw a net loss of PKR59.38m against an PKR2.82bn profit in the FY18-19.

"During the FY19-20, the cement industry faced a number of challenges resulting from an over-supply situation on the back of massive expansions resulting in significant drop in prices and reduction of gross margins. The expected increase in demand could not materialise due to less PSDP allocation by the government, halting of investment due to a ban on high-rise buildings and restrictions on non-filers to purchase the property. The CPEC related projects also did not get initiated as anticipated. The situation was further aggravated by spread of COVID-19, thereby halting the economic activities towards the end of the FY20," said Qamar Haris Manzoor, CEO.