Maple Leaf Cement Factory Ltd (MLCF) has announced a strong start to FY26, recording consolidated earnings of PKR2.7bn (US$9.5m) in the first quarter, up 103 per cent (YoY), according to a report by AHL Research. The impressive growth was driven by higher net revenue, improved profit margins, and reduced distribution and finance costs.
During 1QFY26, revenue increased five per cent YoY to PKR 16.5bn, compared to PKR 15.7bn in 1QFY25. The rise was supported by a 22 per cent increase in domestic dispatches, which reached 0.95Mt. However, revenue declined five per cent QoQ due to lower local retention prices.
Gross margins improved to 33.9 per cent in 1QFY26 from 31.6 per cent a year earlier, supported by an improved fuel and power mix and stronger domestic dispatches. This was, however, lower than the 40.5 per cent margin recorded in 4QFY25, reflecting the impact of higher production from older lines despite new, more efficient capacity coming online.
Selling and distribution expenses fell 43 per cent YoY to PKR774m and declined 20 per cent QoQ, following the company’s transition away from a direct distribution model. Finance costs also dropped sharply, down 50 per cent YoY, due to lower interest rates and the absence of short-term borrowings, which stood at PKR4.7bn in 1QFY25.
Other income surged ninefold to PKR498m in 1QFY26, supported by higher cash reserves and short-term investments, which increased to PKR14.6bn from PKR6.8bn in the same period last year.
By Abdul Rab Siddiqi, Pakistan
