The profitability of Pakistan’s listed cement firms rose 38 per cent YoY in FY25, reaching PKR167bn (US$589m) compared with PKR121.4bn in FY24, according to a report by AHL Research.
Sector sales climbed seven per cent YoY to PKR896bn, supported by higher retention prices and a two per cent YoY increase in cement dispatches to 37.4Mt. In 4QFY25, dispatches grew four per cent YoY and two per cent QoQ to 9.3Mt, though overall sales fell 16 per cent QoQ.
Gross margins improved to 30.7 per cent during the year, driven by stronger prices, lower coal costs, and a better power mix. Other income surged 33 per cent YoY to PKR36.4bn on higher interest and dividend earnings, while finance costs dropped 34 per cent YoY to PKR46bn amid falling interest rates and reduced borrowing.
Average cement prices rose to PKR1434 per bag in the north and PKR1,395 per bag in the south, up 16 per cent and 17 per cent YoY respectively, reflecting higher retention and Federal Excise Duty. In 4QFY25, retention prices increased by four per cent QoQ in the north and three per cent in the south.
Meanwhile, average coal prices eased 4.6 per cent YoY to US$102/t in FY25, further boosting sector margins. In 4QFY25, coal averaged US$92/t, down 15 per cent YoY and four per cent QoQ.
By Abdul Rab Siddiqi, Pakistan
