Flying Cement H1 profit skyrockets

February 25, 2026 (MLN): Flying Cement Company Limited (PSX: FLYNG) reported a net profit of Rs332.7m for the half year ended December 31, 2025, a remarkable 312% surge from the Rs80.8m profit recorded in the same period last year.

The company's earnings per share jumped to Rs0.48 from Rs0.12 in the corresponding period of the previous year.

The cement manufacturer's net sales rose 78% year-on-year to Rs7.01bn from Rs3.93bn, while gross sales reached Rs10.85bn compared to Rs5.89bn in the prior period.

Cost of sales increased 72% to Rs5.91bn from Rs3.43bn, resulting in a gross profit of Rs1.10bn, up 120% from Rs501m in the prior period.

The gross profit margin improved to 15.7% from 12.8% in H1 FY2025, indicating that revenue growth outpaced cost escalation, allowing the company to expand its margins meaningfully despite an inflationary cost environment in the cement sector.

The net profit margin stood at 4.75% compared to 2.06% in the same period last year, reflecting the company's significantly improved profitability on a higher revenue base.

Administrative expenses declined 46% to Rs90.9m from Rs167.8m, showing improved cost discipline and efficiency gains.

Distribution costs edged up 16% to Rs10.7m from Rs9.3m, remaining well-controlled relative to the scale of sales expansion.

Operating profit surged 208% to Rs998.8m from Rs323.8m in CY2025, emphasizing the impact of higher volumes, improved margins, and leaner administrative expenditure.

Finance costs, however, surged 4.1 times to Rs315m from Rs61.7m, showing significantly higher borrowing costs and debt servicing obligations during the period, which weighed on the bottom line.

Profit before taxation stood at Rs683.8m, representing a 122% increase from Rs307.6m in the corresponding period last year.

The company recorded a taxation expense of Rs351.1m, up 55% from Rs226.8m, as higher profitability attracted a greater tax charge, partially moderating the strong pre-tax earnings growth.

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