The profitability of a large number of Pakistan cement producers and exporters continued to show losses in FY3Q10 and 1QFY10-11 (July-September), due to lower sales, increased production costs, high interest rate and a decline in margins. An increase in cement prices of PKR 35/per bag during the period under review could also not compensate for the declines, according to analysts. Hence no incentives were announced to shareholders.
Lafarge Pakistan reported a huge loss of PKR1bn (US$11.6m) for the nine months ended September 30, 2010 compared to a loss of PKR782m in the corresponding period last year. Sales decline to PKR5.03bn from PRK6.41bn of corresponding quarters (Jan-Sept) last year. Gross profit stood at PKR385.141m compared to PKR902.020m in the total three quarters of FY09.
Maple Leaf Cement Factory posted a loss after tax PKR618m in 1QFY10-11 compared to a PKR175m loss reported in corresponding (July-Sept) period last year. Its net sales stood at PKR2.910bn from PKR3.682bn in first three months of last financial year. It incurred administrative expenses of PKR52m and financing cost of PKR534m compared to PKR43m and PKR573 m respectively in 1QFY 2009-10.
Pioneer Cement posted a loss after taxation of PKR 86m in 1Q FY 2010-11 compare to PKR 67m losses in the corresponding months last year. Its net turnover stood at PKR1.028bn compared to PKR1.034bn in first three months of last financial year. It paid excise duty of PKR175m and sales tax of PKR180m compared to PKR 205m and PKR176m respectively in first quarter of 2009-10.
Kohat Cement posted a loss after tax of PKR82m in 1Q FY 2010-11 compared to PKR78m in the corresponding period last year. Its net sales stood at PKR934m from PKR707m of the first-quarter ended September 30, 2009. Its cost of goods sold increased from PKR610m to PKR813m in 1Q10-11. It incurred a financial cost of PKR164m from PKR168m of 2009-10.