Lafarge Pakistan Cement swings to profit

Lafarge Pakistan Cement swings to profit

Lafarge Pakistan Cement reported profit after tax of PKR498.916m (US$5.3m) in the first half of calandar year 2012 compared to losses of PKR17.539m in same period last year, boosted by a rise in domestic sales and cost optimisation.

Net sales for the period stood at PKR4.784bn against PKR3.684bn in 2011. Its administrative and financial cost increased to PKR278.6m and PKR604.662m from PKR221.613m and PKR481.564m, respectively 1H11. Distribution costs also increased to PKR115.625m from PKR103.332m in 1H12 in same period last year.
 
According to Maj Gen Rehmat Khan, CEO of Lafarge Pakistan, during the half year the company managed to sell 605,000t of cement in the local market compared to 589,000t last year. Exports, on the other hand, declined to 231,000t from 264,000t in the same period last year.

The company continued its focus on cost optimisation with 24 per cent alternative fuel usage which saved PKR201m during the half year. Not only did power tariffs increase during the period but the company also a faced severe power crisis during the second quarter. Despite these challenges operating profit rose by 130 per cent from PKR476m to PKR1098m.