Maple Leaf Cement Factory records net profits of PKR1.89bn in 9MFY18-19

Maple Leaf Cement Factory Ltd (MLCFL) has announced its financial results for the nine-month period ended 31 March 2019 by declaring a net profit for the period of PKR1.89bn (US$13.34m), down 43.9 per cent YoY as compared to PKR3.37bn in the same period last year.

Net sales of MLCFL during the 9MFY18-19 decreased to PKR18.28bn from PKR19.22bn during this period. MLCFL incurred a distribution cost of PKR607m, up when compared with PKR551m in the same period last year. The administrative expenses also advanced to PKR518m from PKR516m in the 9MFY17-18.

Two local research houses commented that profitability was impacted due to a shutdown of the company's 4000tpd line, due to maintenance during the third quarter. MLCF's new 2.3Mt grey cement line is expected to commence commercial operations within this week. Amid margin compression, owing to a lack of pricing discipline within the industry, analysts predict a further impact on profitability in the last quarter result of MLCF due to higher depreciation and finance costs following the start-up of the new line.