Pakistan-based Pioneer Cement Ltd reported earnings of PKR1119m (US$3.94m) for the fourth quarter of FY24-25. This represents a decrease compared to a profit of PKR1396m in the the 4QFY23-24 and an increase from PKR974m in the 3QFY24-25. Earnings decreased by 20 per cent YoY, while they increased by 15 per cent QoQ, according to a report from BMA Research.
For the full FY24-25, earnings per share totalled PKR21.47, down from PKR22.79 in the previous year, representing a six per cent YoY decline.
The results for the 4QFY24-25 fell short of industry expectations, primarily due to a lower-than-anticipated gross margin and a higher effective tax rate. Alongside the earnings announcement, the company declared a cash dividend of PKR5.00/share, resulting in a total annual payout of PKR10.00/share.
Pioneer Cement's revenue increased by six per cent YoY and nine per cent QoQ, reaching PKR8.6bn. This rise in sales is likely attributed to higher cement prices. In the 4QFY24-25, the company’s local dispatches totalled 0.53Mt, reflecting a one per cent YoY decline but a one per cent QoQ increase.
The company’s gross margins were reported at 26.9 per cent for the 4QFY24-25, down from 35.4 per cent in the 4QFY23-24 and slightly up from 25.5 per cent in the 3QFY24-25. The decline in gross margins is attributed to lower cement dispatches and increased royalty expenses.
For the 4QFY24-25, Pioneer Cement reported distribution costs of PKR30m, representing a 12 per cent YoY increase and a 26 per cent QoQ decrease. Other income rose by 66 per cent YoY and by six per cent QoQ to reach PKR119m, likely due to an increase in cash and short-term investments.
The finance cost for the quarter was PKR282m, reflecting a 49 per cent YoY decrease and a 1 per cent QoQ decrease. This reduction in finance cost appears to be driven by lower KIBOR rates along with debt repayment, as the company’s total debt decreased from PKR10.5bn in June 2024 to PKR8.8bn in June 2025.
The effective tax rate for the 4Q FY24-25 was reported at 42.8 per cent, compared to 35.2 per cent in the 4QFY23-24and 38.4 per cent in the 3QFY24-25.
by Abdul Rab Siddiqi, Pakistan
