Maple Leaf Cement Company Ltd (MLCF) held its Annual General Meeting (AGM) on 17 September where management outlined FY26 performance and strategic initiatives, according to AHL Research Ltd.
Unconsolidated revenue rose to PKR71bn (US$256m) from PKR69bn last year, with cement dispatches up 10.1 per cent YoY to 3.959 Mt. Despite volume growth, capacity utilisation remained around 50 per cent. Gross margins stayed stable at 34 per cent unconsolidated and 37 per cent consolidated, even as cost of sales increased 24 per cent YoY. Net profit stood at PKR8.4bn unconsolidated, while consolidated profit attributable to equity holders reached PKR11.8bn. Closing debt totalled PKR 83.5 billion, reflecting borrowings tied to the Pioneer Cement acquisition.
The group now owns 88 per cent of Pioneer Cement, with merger proceedings underway and consolidation expected by March. Maple Leaf ranks No. 3 in domestic cement sales, bolstered by the combined group’s market strength.
Management highlighted resilience against rising fuel and freight costs, noting shipping and insurance expenses climbed 20 per cent amid geopolitical tensions. Contribution margins were defended through efficiency measures, with imported coal reliance limited to 10 per cent. The fuel mix comprised ~60 per cent coal and ~40 per cent alternative fuels, largely sourced locally. Average fuel cost per ton rose only PKR 600 (~2% YoY) compared to inflation of 8.5 per cent.
The company is expanding renewable energy, with 51MW solar capacity across operations and plans for an additional 80–100MW at Maple Leaf’s site, integrated with battery storage. One coal-based power plant is slated for closure as part of the broader shift toward alternate fuels and energy efficiency.
On the pending royalty case, management disclosed a PKR6bn provision and cautioned against assuming a reversal. Cement dispatch growth is projected at 9.2 per cent, though internal budgeting assumes a conservative 7.5 per cent.
by Abdul R. Siddiqi, Pakistan
