Bestway Cement posts 6% rise in FY23-24 sales

Chairman of Bestway Cement Ltd, Sir Mohammed Anwar Pervez, stated that despite all the challenges, Bestway increased its market share in Pakistan and achieved a growth of six per cent in sales volumes, outperforming the industry growth of 1.6 per cent. The main factor behind the development was attributed to the company's two new production lines at Hattar and Mianwali, which became operational during the FY22-23.

According to the annual report for 2024, Bestway Cement has achieved significant financial growth, recording a 21 per cent increase in gross turnover from PKR120.2bn (US$430.6m) to PKR145.6bn in the year that ended 30 June 2024. The gross profit for the year surged to PKR32.2bn, and the net profit after tax stood at PKR13.8bn. This growth was primarily driven by a six per cent increase in sales volumes (6.868Mt of cement), the successful operation of the two new production lines at Hattar and Mianwali in Punjab, and an increase in selling prices to offset rising input costs.

Industry overview
Domestic cement dispatches in FY23-24 decreased by five per cent to 38.2Mt from 40Mt in the previous financial year. However, export volumes grew by 54 per cent from 4.6Mt to 7.1Mt over the same period. Overall, dispatches by the industry increased by 1.6 per cent from 44.6Mt in the previous financial year to 45.3Mt for the year ended 30 June 2024. The shrinkage in the domestic sales volumes is primarily attributed to the economic and political uncertainty, high interest rates and inflation that remained prevalent throughout the year. The export increase was enabled by conducive prices in the international market and the rupee devaluation.

Contribution to the National Exchequer
Bestway Cement is among the largest taxpayers in the country. During the year under review, the company’s contribution to the exchequer amounted to more than PKR43bn in income tax, sales tax, and excise duty.

Water conservation
Bestway Cement is now the undisputed leader in water conservation after installing air-cooled condenser systems, the first and only one in the cement industry, instead of the conventional water-cooled system. This innovative step has reduced about 80 per cent of industrial water requirements. Rainwater harvesting has been a key area of focus, and the company has made huge strides in not only improving the existing rainwater harvesting ponds significantly but also setting up new ones. It was announced that 100 per cent of industrial water requirements at the Chakwal, Kallar Kahar, and Mianwali plants are fulfilled through rainwater harvesting.