A score of cement companies mixed financial results in 9MFY22-23

Several of Pakistan’s cement firms have presented their financial result for the 3QFY22-23 and 9MFY22-23 in April/May 2023. During the accounting period of nine months, they reported mixed results due to a rise in the cost of sales, distribution and finance charges, etc. High inflation and political unrest also dented sales and profits.

In the 9MFY22-23 Flying Cement Co Ltd reported a decrease in profit after tax (PAT) to PKR226m (US$0.79m) from PKR766m earned in the corresponding period last year. Its net sales in 9MFY22-23 decreased to PKR3.18bn from PKR3.97bn and cost of sales to PKR2.67bn from PKR3.08bn during this period. It incurred a distribution cost and administrative expenses of PKR9.85m and PKR60.74m in the 9MFY22-23 against PKR5.6m and PKR62m in the equivalent period of the prevoius year. The financial costs jumped to PKR112m in the 9MFY22-23 from PKR82m in nine months of the previous year.

In 9MFY22-23 Bestway Cement Ltd saw a 12.4 per cent increase in profit after tax (PAT) to PKR11.64bn from PKR10.36bn earned in the corresponding period last year. Its net sales advanced by 25.7 per cent to PKR64.49bn from PKR51.32bn during this period. It incurred a distribution cost of PKR739m against PKR748m in the year-ago period and administrative expenses of PKR1.17bn compared to PKR1.13bn in 9MFY21-22. Financial costs reached an all-time high of PKR3.5bn. 

Thatta Cement Co Ltd has announced its financial results for the 9MFY22-23. It reported a 103 per cent increase in PAT in 9MFY22-23 to PKR83m from PKR41m earned in the corresponding period last year. The company's net sales increased to PKR3.94bn from PKR3bn during this period. It incurred a distribution cost of PKR65m in the 9MFY22-23 against PKR40m in the 9MFY21-22 and administrative expenses of PKR114m compared to PKR90m in 9MFY21-22.

Gharibwal Cement Ltd announced for the 9MFY22-23 period a one per cent decrease in its PAT to PKR1.67bn from PKR1.69bn earned in the same period last year. The company’s sales advanced by 22.6 per cent to PKR14.04bn from PKR11.45bn in the same period the previous year. The company incurred higher administrative expenses of PKR500.41m against PKR363.44m in the same period last year and also noticed higher distribution expenses to PKR63.93m from PKR51.77m in the same period the previous year. 

Kohat Cement Co Ltd reported an increase in profit by 15.8 per cent in 9MFY22-23. Its PAT rose to PKR5.36bn from PKR4.62bn of 9MFY21-22. The company's net sales increased to PKR29.82bn in the 9MFY22-23 from PKR23.58bn in the year-ago peroid and the cost of sales to PKR21.85bn from PKR16.33bn during this period. It incurred a higher distribution cost of PKR115m against PKR85m. The administrative expenses increased by PKR290m from PKR257m during this period.

Pioneer Cement Ltd has reported that its earnings stood at PKR2.7bn in the 9MFY22-23 compared to PKR1.6bn in the same period last year, up by 66 per cent YoY. A research house commented that this yearly increase is attributable to increased cement prices over the period that outweighs the decline in sales volumes and increased finance charges. The sales recorded at PKR27.79bn, up by 23 per cent YoY. The finance cost rose to PKR2.63bn, up 36 per cent during this period. 

Cherat Cement Co Ltd announced its 9MFY22-23 result, where the company reported earnings of PKR1.3bn compared to PKR3.4bn a year ago, an increase of 25 per cent YoY mainly due to the rise in cement prices over the period. The sales jumped 27 per cent YoY to PKR28.75bn. The financial cost were up by 56 per cent to PKR1.416bn YoY.