Maple Leaf Cement FY26 profit rises 9% to Rs12.6bn

July 31, 2026 (MLN): Maple Leaf Cement Factory Limited (PSX: MLCF) recorded a 9% increase in its net profit for the year ended June 30, 2026, with profit for the year climbing to Rs12.56bn from Rs11.50bn in the corresponding period last year.

Showing this steady bottom-line growth, the company's earnings per share (EPS) expanded to Rs11.34 from Rs10.98 in FY25.

The top-line performance was robust, with net revenue from contracts with customers growing 24% year-on-year to Rs85.15bn from Rs68.65bn in the prior year.

Cost of sales rose in near-equal proportion at 24% to Rs53.54bn, allowing gross profit to expand by 24% to Rs31.61bn from Rs25.44bn showing disciplined cost management that preserved margins despite higher volumes.

On the expenditure side, selling and distribution expenses were cut sharply by 28% to Rs2.98bn, providing meaningful relief.

Administrative expenses, however, surged 72% to Rs4.03bn, partially offsetting the saving on distribution costs. Other expenses declined marginally by 2% to Rs1.39bn.

A notable swing came from net impairment on financial assets, which turned to a gain of Rs122.55m from a loss of Rs514.43m in the prior year a positive reversal that added to the operating line. Other income declined 37% to Rs1.26bn from Rs2.02bn.

Taken together, these movements delivered a 29% increase in operating profit to Rs24.59bn from Rs19.05bn.

Below the operating line, the picture was more challenging. Finance cost surged 53% to Rs4.59bn, while finance income declined 43% to Rs624.93m, causing net finance cost to more than double to Rs3.97bn from Rs1.92bn a significant drag on the bottom-line.

The share of net loss from an associate accounted for using the equity method narrowed by 32% to Rs516.95m from Rs761.07m, providing a modest offset.

These combined factors brought profit before final taxes and income tax up 23% to Rs20.10bn from Rs16.37bn.

Final taxes levy, however, surged to Rs138.96m from Rs38.97m, though the absolute quantum remained manageable, with profit before income tax rising 22% to Rs19.96bn from Rs16.33bn.

The factor that moderated the bottom-line expansion was a substantially higher income tax charge.

Income tax jumped 53% to Rs7.40bn from Rs4.83bn a proportionally far larger increase than the pre-tax profit growth absorbing a significant portion of the operational gains and limiting the overall profit increase to 9%.

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