Cherat Cement FY26 profit falls 16%, declares Rs4 dividend

August 21, 2026 (MLN): Cherat Cement Company Limited (PSX: CHCC) recorded a 16% decline in its net profit for the year ended June 30, 2026, with net profit for the year falling to Rs7.25bn from Rs8.68bn in the corresponding period last year.

Showing this softer bottom-line, the company's earnings per share (EPS) contracted to Rs37.34 from Rs44.68 in FY25.

The Board of Directors has declared a final cash dividend of Rs4.00 per share (40%) for the year ended June 30, 2026.

The top-line came under mild pressure, with net turnover declining 4% year-on-year to Rs36.48bn from Rs37.81bn in the prior year.

Cost of sales, however, moved in the opposite direction, rising 3% to Rs24.44bn causing gross profit to contract by 14% to Rs12.04bn from Rs13.97bn and showing meaningful margin compression as costs rose against a backdrop of declining revenue.

On the expenditure side, distribution costs rose 7% to Rs911.05m and administrative expenses increased 16% to Rs689.01m.

Other expenses declined 10% to Rs568.80m, providing partial relief. Other income grew 11% to Rs1.77bn from Rs1.59bn, offering a further offset.

Taken together, these movements pulled operating profit down 14% to Rs11.64bn from Rs13.48bn.

Below the operating line, finance costs fell sharply by 42% to Rs341.61m from Rs591.78m a meaningful positive development that partially cushioned the operating profit decline.

Profit before income tax and levy eased 12% to Rs11.30bn from Rs12.89bn. The levy final tax declined 33% to just Rs1.62m, keeping profit before income tax broadly in line at Rs11.30bn, down 12%.

On the taxation front, current tax declined modestly by 4% to Rs4.12bn. Prior year tax credit narrowed sharply by 96% to Rs32.62m from Rs749.34m. Deferred tax swung to a credit of Rs43.82m against a charge of Rs672.03m last year.

The net effect of these movements resulted in a total income tax subtotal that was higher than in the prior year, absorbing more of the pre-tax profit and delivering the 16% decline in net profit for the year.

August 21, 2026 (MLN): 

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