Pakistan-based Kohat Cement Co Ltd has reported a 4.2 per cent YoY fall in net sales for its 3QFY24-25 period ended 31 March 2025, generating PKR8.152bn (US$29m).
For the 9MFY24-25 net sales fell 3.9 per cent YoY to PKR28.81bn. During the same period, domestic cement dispatches declined by 12.4 per cent YoY from 2.01Mt to 1.77Mt, which the company largely attributes to a fall in domestic demand. In the 3QFY24-25 there was a 4.8 per cent drop in dispatches to 0.551Mt.
Kohat Cement said revenue for the 9MFY24-25 stood at PKR28.8bn, a decrease of 3.9 per YoY, but noting that the drop in dispatches had been partly offset by an increase in sales prices. Moreover it noted that cost optimisation strategies, such as capitalising on renewable energy resources and greater reliance on local coal, had helped mitigate the effect of lower dispatches.
Falling demand in Pakistan
The wider Pakistan cement industry contracted by 1.5 per cent YoY in the 9MFY24-25, with dispatches dropping to 33.9Mt from 34.5Mt. A significant factor in this fall in demand is Pakistan’s Public Sector Development Program, which has been subject to stricter controls by the IMF that are affecting government infrastructure spending. The effects of the country's economic slowdown are also compounded by rising construction costs.
Meanwhile Pakistan cement industry exports improved significantly in the 9MFY24-25, increasing to 6.5Mt when compared to 5.1Mt in the same YoY period. However, given the economic climate Kohat Cement says that it does not anticipate growth during the current financial year and is exploring mitigation strategies to maximise business potential.
As previously reported, in April the company recently completed a share buy-back scheme.
New plants
Kohat Cement notes that infrastructure development for its greenfield plant in Khushab, Punjab, is underway although there appears to have been no further progress since November on the importing of equipment, with the company still waiting for a more favourable construction market.
News from the company’s coal-fired power plant at its Kohat site is more positive, with installation and commissioning expected to be finished by the end of the next financial year.
