Pakistani cement producers earn a profit in 1HFY22

The major players in Pakistan’s cement industry have reported a profit during 1HFY22 in Pakistan. The Spectrum Research has attributed to an increase in the topline, a decrease in finance cost and an increase in other costs during this period, particularly in the 2QFY22. However, most of the companies did not announce any dividends. 

Industry dispatches in 1HFY22
According to Lucky Cement, the cement industry-wide local sales volume registered a growth of 1.9 per cent to reach 24.07Mt during the 1HFY22 (ended 31 December 2021), versus 23.62Mt during the same period last year. However, the export sales volumes showed a large decline of 32.5 per cent to reach 3.39Mt during 1HY21-22 compared to 5.02Mt during the same period in the previous year. As a result, the total cement sales of the industry declined by 4.1 per cent to 27.46Mt in 1HFY22, compared to 28.64Mt in the same period last year. The decline in overall dispatches was due to a reduction in export volumes on the back of volatility in coal prices and freight costs internationally, which have adversely affected the viability of cement exports from Pakistan.

Lucky Cement
Lucky Cement achieved a profit before tax (PAT) of PKR7.59bn (US$42.34m) during 1HFY22 compared to PKR5.52bn reported during the same period last year. This was primarily due to increased sales revenue and dividend income during the first half under review. Its gross sales revenue increased by 20.2 per cent compared to the same period last year. Local sales revenue increased 27.6 per cent (PKR43.68bn vs PKR34.24bn), but the export sales revenue declined by 12.01 per cent (PKR6.93bn vs PKR7.87bn). 

Bestway Cement Ltd (BCL) 
BCL has earned a net profit of PKR6.56bn compared to PKR4.68bn made in the same period last year. Its net sales increased to PKR48.43bn from PKR40.69bn during this period. It incurred a higher distribution cost of PKR530m against PKR334m and administrative expenses PKR624m compared to PKR278m incurred in the same period last year.

Maple Leaf Cement Factory Ltd 
Maple Cement Factory Ltd has announced that its profit after tax (PAT) increased to PKR2.75bn in 1HFY22 from PKR1.62bn earned in the corresponding period of 2021. Its net sales increased to PKR22.1bn from PKR16.57bn during this period. It incurred a distribution cost of PKR759m and administrative expenses of PKR448m compared to PKR395m and PKR 395m in 1HFY21, respectively. 

DG Khan Company Ltd 
DG Khan Cement declared net earnings of PKR2.17bn compared to PKR800m earned in the same period last year. The net sales jumped to PKR27.43bn from PKR21.86bn during this period. The company incurred a higher distribution cost of PKR1.01bn against PKR992m in the same period last year. The administrative expenses also increased to PKR368m from PKR310m.  

Fauji Cement Co Ltd 
Fauji Cement has announced earnings of net profit of PKR2.83bn compared to PKR1.60bn earned in the same period last year. The company's net sales during the half-year FY21-22 increased to PKR15.24bn from PKR11.61bn during this period. It incurred a higher distribution cost of PKR109m against PKR93m in the same period last year. The administrative expenses also increased by PKR367m compared to PKR253m incurred in the same period the previous year.

Flying Cement Co Ltd
Flying Cement Co has reported PAT of PKR464m from PKR89m during this period. Its net sales increased to PKR2.61bn from PKR1bn. It incurred a distribution cost and administrative expenses of PKR38.27m against PKR32.64m in the same period last year.  

Kohat Cement Co Ltd 
Kohat Cement has announced PAT of PKR2.98bn from PKR1.47bn of 1HFY21. The net sales increased to PKR15.01bn from PKR11.1bn and the cost of sales to PKR10.27bn from PKR8.51bn during this period. It incurred a distribution cost and administrative expenses of PKR226m against PKR196m in the same period last year.

Power Cement Ltd
Power Cement’s PAT increased to PKR280m during this period from PKR249m earned in the corresponding period of 1HFY21. Its net sales increased to PKR9.2bn from PKR6.83bn. Similarly, the cost of sales to PKR7.45bn from PKR5.16 bn during this period. It incurred a lesser distribution cost of PKR604m against PKR622m in the same period last year. The administrative expenses increased by PKR142m compared to PKR119m incurred in 1HFY21.