Cherat Cement earnings drop 20% in H1

February 18, 2026 (MLN): Cherat Cement Company Limited (PSX: CHCC) reported a net profit of Rs4.11bn for the half year ended December 31, 2025, showing a 20.16% decline compared to Rs5.15bn in the same period last year.

Earnings per share (EPS) fell to Rs21.16 from Rs26.50, down 20.15% YoY. The Board of Directors declared an interim cash dividend of Rs1.5 per share (15%) for the period.

The company’s turnover decreased 2.94% YoY to Rs19.71bn from Rs20.30bn, indicating slightly weaker top-line performance amid challenging cement sector dynamics.

Cost of sales declined marginally by 0.47% to Rs12.55bn from Rs12.61bn. Consequently, gross profit fell 6.98% YoY to Rs7.16bn compared to Rs7.70bn in H1 last year.

The gross profit margin compressed to 36.3% from 37.9% previously, reflecting pressure on pricing and cost absorption.

Distribution costs increased 8.36% to Rs442.9m, while administrative expenses rose 12.76% to Rs330.7m. Other expenses also edged up 5.29% to Rs379.0m, indicating elevated operational spending during the period.

Other income declined 6.69% to Rs812.8m from Rs871.0m, further weighing on profitability.

As a result, operating profit decreased 9.14% YoY to Rs6.82bn compared to Rs7.50bn in the corresponding period last year.

Finance costs dropped sharply by 48.49% to Rs196.9m from Rs382.3m, providing notable support to the bottom line amid a softer interest rate environment.

Profit before income tax stood at Rs6.62bn, down 7.02% from Rs7.12bn last year.

Total income tax expense rose 27.32% to Rs2.51bn compared to Rs1.97bn in the same period last year, mainly due to lower prior-year tax adjustments and higher overall effective tax burden.

Consequently, profit after tax settled at Rs4.11bn, marking a 20% YoY decline.

Copyright Mettis Link News