Dewan Cement Ltd reported a net loss of US$1.72m for FY23-24

Dewan Cement Ltd (DCL), a major cement producer in Pakistan, has reported a net loss of PKR509.7m (US$1.72m) for the financial year ended 30 June 2024 (FY23-24), slightly improving from a loss of PKR586.3m in the previous fiscal year.

The company’s net turnover increased by 10.5 per cent to PKR22.319bn, up from PKR20.199bn in the FY22-23 period. Despite the rise in turnover, the cost of sales also grew, reaching PKR21.925bn, resulting in a gross profit of PKR993.9m, more than double the PKR446.9m recorded the previous year.

Distribution costs rose by 9.3 per cent to PKR149.3m, while administrative expenses stood at PKR873.5m, up slightly from PKR828.8m in the previous year. Other operating expenses dropped significantly to PKR7.9m, compared to PKR42.1m the year before.

Dewan Cement posted an operating loss of PKR636.7m, a 13.6 per cent increase from the previous year's loss of PKR560.6m. EBITDA also decreased, driven by higher fixed costs.

The company is continuing its focus on improving operational efficiency despite challenges in cost inflation. However, no dividend or other entitlements were declared for the fiscal year.