Maple Leaf Cement profit grows 15% in 1HFY26

February 25, 2026 (MLN): Maple Leaf Cement Factory Limited (PSX:MLCF) reported a net profit of Rs5.85bn for the half year ended December 31, 2025, a 15% increase from the Rs5.08bn profit recorded in the same period last year.

The company's earnings per share rose to Rs5.58 from Rs4.85 in the corresponding period of the previous year.

The cement manufacturer's revenue from contracts with customers increased modestly by 2% YoY to Rs35.42bn from Rs34.75bn.

Cost of sales rose 5% to Rs23.26bn from Rs22.21bn, resulting in a gross profit of Rs12.16bn, down 3% from Rs12.54bn in the prior period.

The gross profit margin declined to 34.3% from 36.1% in H1 FY2025, indicating margin compression as cost of sales grew faster than revenue.

The net profit margin improved to 16.5% from 14.6% in the same period last year, reflecting the company's improved overall profitability despite the gross margin pressure.

Selling and distribution expenses declined 33% to Rs1.6bn from Rs2.39bn.

Administrative expenses increased 11% to Rs1.4bn from Rs1.26bn.

Other expenses increased 31% to Rs602.5m from Rs461.5m, while other income surged 2.7 times to Rs789.9m from Rs291.3m, providing substantial support to profitability.

Operating profit grew 10% to Rs9.27bn from Rs8.39bn in H1 FY2025, reflecting the benefit of lower distribution costs and higher other income offsetting the gross profit decline.

Finance costs declined sharply by 63% to Rs778.1m from Rs2.09bn.

Profit before income tax increased 23% to Rs8.90bn from Rs7.22bn in the corresponding period last year.

The company recorded an income tax expense of Rs3.05bn, up 42% from Rs2.14bn, with the significantly higher tax burden constraining net profit growth to 15%.

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