Maple Leaf Cement Factory Limited (MLCF) has announced its 1HFY25 financial results, showing a strong 31% YoY growth in earnings. The company’s consolidated profit reached PKR 5,078mn (EPS: PKR 4.85), compared to PKR 3,869mn (EPS: PKR 3.69) in 1HFY24.
For 2QFY25, earnings surged to PKR 3,735mn (EPS: PKR 3.57), reflecting a 67% YoY and 178% QoQ increase, making it one of the company’s best-performing quarters.
Key Highlights:
- Revenue Performance: Sales for 1HFY25 remained steady at PKR 34.7bn, but 2QFY25 saw a 5% YoY increase to PKR 19.0bn, supported by higher retention prices despite a 3% YoY drop in dispatches. QoQ sales grew by 21%, driven by a corresponding rise in dispatches.
- Gross Margins: Improved to 36.1% in 1HFY25 (vs. 33.4% in 1HFY24). In 2QFY25, margins rose to 39.8%, the highest since 2QFY17, mainly due to lower Afghan coal prices and higher retention prices.
- Cost Efficiency:
- Selling and distribution expenses fell by 14% YoY in 1HFY25 to PKR 2,390mn.
- 2QFY25 saw a significant 37% YoY and 23% QoQ reduction in selling expenses.
- Other Income: Increased 8.3 times YoY to PKR 1,213mn in 1HFY25, mainly due to higher short-term investments (PKR 42.7bn as of Dec’24). In 2QFY25, other income surged 16.4x YoY.
- Finance Costs: Grew 12% YoY in 1HFY25 (PKR 2,091mn), driven by higher borrowings (PKR 37.1bn). In 2QFY25, finance costs jumped by 55% YoY and 110% QoQ.
- Taxation: The effective tax rate in 2QFY25 stood at 27.1%, up from 23.3% in 2QFY24.
Conclusion:
Maple Leaf Cement has posted record-high gross margins in 32 quarters, reflecting strong pricing power, cost efficiency, and investment income growth. With strategic cost reductions and revenue growth, MLCF remains well-positioned in the cement industry.
