Maple Leaf Cement suffers substantial drop in profit at the hands of lower dispatches

By MG News | April 25, 2019 at 10:20 AM GMT+05:00

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April 25, 2019 (MLN): Maple Leaf Cement Factory (MLCF) Limited has announced a net profit or Rs.1.89 billion (EPS: RS.3.19) for the nine month period that ended on March 31, 2019. This marks a negative growth of 43.8% when compared to the results during the same period last year (Rs.3.37 billion, EPS: Rs.6.01).

Going by the official profit and loss statement provided by the company, the decline in earnings root from a 4.9% drop in net sales (Rs.18.3 billion) due to decreased demand of cement dispatches.

Coupled with higher cost of sales, the Gross Profit (Rs.4.76 billion) suffered a contraction of 26% or Rs.1.7 billion.

While overall expenses were reduced over time, the non-core income (Rs.30.5 million) dropped as well, pulling along with it, the profit from operations (Rs.3.5 billion) by 30.8%.

Moreover, the company’s finance cost expanded by Rs.416 million or 70.3% due to higher debt financing for plant expansion. This led to an overall decline in MLCF's net profit for the period.

Financial Results for the nine months ended March 31, 2019 ('000 Rupees)
	Mar-19	Mar-18	% Change
Sales - net	18,276,181	19,224,270	-4.93%
Cost of Sales	(13,521,172)	(12,788,545)	5.73%
Gross profit	4,755,009	6,435,725	-26.12%
Distribution cost	(607,036)	(551,684)	10.03%
Administrative expenses	(518,993)	(516,418)	0.50%
Other charges	(203,360)	(427,709)	-52.45%
	(1,329,389)	(1,495,811)	-11.13%
Other income	30,464	54,828	-44.44%
Profit from operations	3,456,084	4,994,742	-30.81%
Finance cost	(1,009,692)	(593,007)	70.27%
Profit before taxation	2,446,392	4,401,735	-44.42%
Taxation	(553,761)	(1,031,724)	-46.33%
Profit after taxation	1,892,631	3,370,011	-43.84%
Basic and diluted earnings per share (Rupees)	3.19	6.01	-46.92%

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