Fauji Cement approves expansion of PP Bags plant

MG News | August 11, 2025 at 09:16 AM GMT+05:00

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August 11, 2025 (MLN): The Board of Directors of Fauji Cement Company Limited (PSX: FCCL) has approved the expansion of its Polypropylene (PP) Bags Manufacturing Plant at Hattar to meet 100% of the company’s internal packaging requirements.

The move is part of FCCL’s broader strategy to enhance operational efficiency and reduce reliance on external suppliers.

The announcement came during the Board’s meeting held at the company’s Head Office in Chaklala, Rawalpindi, where directors also reviewed the company’s financial performance for the year ended June 30, 2025.

Financial Performance: FY25 vs FY24

FCCL posted strong results for the fiscal year ended June 30, 2025, driven by higher dispatches, improved pricing, and cost optimization:

Key Metrics	FY25	FY24	YoY Change
Cement Dispatches	5.4 million tons	5.1 million tons	↑ 6%
Net Revenue	Rs88.96 billion	Rs80.03 billion	↑ 11%
Gross Profit Margin	35%	32%	↑ 3 pts
Profit After Tax	Rs13.3 billion	Rs8.2 billion	↑ 62%

The company credited its performance to cost-saving initiatives, including increased use of local coal and alternative fuels, in-house production of PP bags, enhanced power generation, and a significant reduction in interest rates, which helped lower financial charges.

The Board recommended a final cash dividend of Rs 1.25 per share (12.5%) for FY25.

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