Maple Leaf Cement Factory saw a fall in profit in 1HFY23-24

Maple Leaf Cement Factory Ltd (MLCF) reported its 2QFY23-24 (October-December 2023) and 1HFY2023-24 results to the Pakistan Stock Exchange (PSX), posting net earnings of PKR2.24bn (US$) in 2QFY23-24, down 23 per cent YoY and up 38 per cent QoQ. This takes 1HFY23-24 (July-December 2023) earnings to PKR3.86bn compared to PKR4.30bn, down 10 per cent YoY due to a decline in sales volumes.

According to Topline Pakistan Research, the 2QFY23-24 result exceeded industry expectations due to higher-than-expected gross margins and a lower effective tax rate. MLCF’s revenue totalled PKR18.07bn in 2QFY23-24, up five per cent YoY and eight per cent QoQ due to better retention prices. The 1HFY23-24 revenue rose to PKR34.74bn from PKR30bn during this period.

The research house estimated that MLCF local dispatches in 2QFY23-24 totalled 1.1Mt, down 10 per cent YoY and up five per cent QoQ. Distribution expense increased significantly by 18 per cent YoY and 36 per cent QoQ to PKR49bn and PKR42m in 2QFY23-24. This increase in cost is mainly attributed to the implementation of axle load. Finance totalled PKR916m, up 75 per cent YoY and down three per cent QoQ in 2QFY23-24. YoY increase is due to high-interest rates, while QoQ decline is due to debt repayment.