MLCF profit remains flat in 9MFY26

April 22, 2026 (MLN): Maple Leaf Cement Factory Limited (PSX: MLCF) reported a marginal 1% dip in its consolidated net profit for the nine months ended March 31, 2026, recording Rs7.80bn compared to Rs7.87bn in the corresponding period last year.

Earning per share for the period was Rs7.44, down from Rs7.51 in SPLY.

The company’s bottom line faced pressure primarily from a substantially higher tax burden, which erased the gains made at the operational level.

 On the top line, MLCF demonstrated robust performance, with net revenue from contracts with customers growing by 11% year-on-year to reach Rs56.96bn, up from Rs51.38bn.

However, inflationary pressures were evident as the cost of sales outpaced revenue growth, rising 14% to Rs37.68bn from Rs32.94bn.

 Despite this slight margin compression, the sheer volume of sales allowed the gross profit to secure a 5% increase, settling at Rs19.29bn.

On the operational front, the company saw a mixed bag of expenses. Selling and distribution expenses were successfully slashed by 27% to Rs2.32bn, and net impairment losses on financial assets dropped by 58% to Rs174.35m.

Conversely, administrative expenses surged 50% to Rs2.70bn. Further bolstering the operational performance was a massive jump in other income, which reached Rs916m.

Driven by lower selling costs and higher secondary income, the operating profit expanded by a healthy 12% to Rs14.20bn from Rs12.63bn.

Below the operating line, MLCF faced some headwinds. While gross finance costs actually dropped by 7% to Rs2.37bn, a steep 61% decline in finance income (dropping to Rs381.19m) resulted in the net finance cost rising by 26% to Rs1.99bn.

Despite the higher net finance burden, profit before income tax still managed a solid 9% improvement, reaching Rs11.84bn compared to Rs10.91bn in 9MFY25.

The critical blow to the final bottom line came from taxation. The company was hit by a massive  surge in final taxes/levies (Rs246.09m) alongside a 33% increase in its standard income tax expense, which consumed Rs4.05bn.

This heavy fiscal drag completely absorbed the pre-tax growth, causing the final profit for the period to edge down by 1% to Rs7.80bn.

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