Attock Cement’s profitability declines by 6.57% YoY in 1HFY20

January 21, 2020 (MLN): Attock Cement Pakistan Limited (ACPL) has announced its financial results for the half-year ended on December 31, 2019. As per the results, the company has witnessed the decline in its net earnings by 6.57% to Rs 762 million against Rs 816 million of the same period last year.

The decline in profitability is majorly due to heightened distribution expenses, up by 41% YoY ancillary to export sales as compared to the previous year. Moreover, the finance cost of the company impacted its profitability which surged by 15% YoY due to a significant rise in interest rates during the period under review.

The company’s top-line earnings remained flat in 1HFY20, down by 0.22% YoY (down0.1%YoY)  to stand at Rs 10.6 billion as the north based players have gained market share in the south resulting into lower dispatches of south players while the cost of sales dropped by 3.20% YoY, which led the gross profits to surge by 10.89% YoY.

Moreover, gross level margins incremented to 23% in 1HFY20 on account of lower coal prices and recovery in retention prices. The company witnessed a decline in tax expenses by 82% YoY.

ACPL’s basic and diluted earnings per share have been reported at Rs 5.55 per share while those recorded last year were Rs 5.94 per share.

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