AKD Research has released key takeaways from Bestway Cement Ltd’s (BWCL) analyst briefing held on September 15 to review its FY25 performance and outlook.
BWCL reported earnings of PKR23.9bn (US$84.4m) in FY25, a 73 per cent increase from PKR13.8bn the previous year. The surge was mainly supported by higher net retention prices, which rose 5five per cent YoY, and a sharp 32 per cent reduction in finance costs due to deleveraging and lower interest rates. Other income also jumped 2.3 times, driven by higher profit contributions from an associated company.
Despite the earnings growth, total offtakes declined by 1.7 per cent YoY while domestic sales slipped 1.8 per cent—still outperforming the broader industry’s three per cent decline. This allowed BWCL to slightly lift its local market share to 18.1 per cent, up from 17.9 per cent in FY24. Capacity utilisation, however, eased to 44.7 per cent from 45.4 per cent a year earlier.
BWCL’s current retention price stands at PKR15,200/t, lower than last year due to weak demand and rising competition. Management expects prices to recover to FY24 levels as domestic demand improves, forecasting five per cent growth in FY26.
On the energy front, BWCL now operates 112MW of solar capacity, nearly fully utilised. The company is evaluating battery storage solutions to optimise renewable energy use. Its coal mix continues to rely 60–70 per cent on local coal, with the remainder imported from Afghanistan.
By Abdul Rab Siddiqi, Pakistan
