Maple Leaf Cement's production cost pulls down annual profits by 4%

By MG News | September 18, 2018 at 10:27 AM GMT+05:00

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September 18, 2018 (MLN): According to their consolidated profit and loss account, Maple Leaf Cement Factory Limited witnessed an overall drop of 4% in annual profits, saved by reduced tax provisions, as the pre-tax profits are reported to be suffering a 22% decline on a year-on-year basis.

The company’s Board of Directors meeting took place yesterday, where the financial earning for the year ended June 30^th 2018 were assessed and laid side by side with the earnings made during the year ended June 30^th 2017.

According to the report issued to PSX earlier today, the company’s net sales grew by 7.5% while an 18% increase in cost of goods sold weighed down the gross profits by 9%.

Although, operating expenses dropped by 1.7%, a 386% increase in finance costs, which went up from Rs.174.2 million to Rs.847.3 million, YoY, resulted in pre-tax profits to decline by 22%.

Fortunately for the company, tax provisions during the year dropped by 63.5%, letting the overall profits drop by a comparatively smaller margin, as they came down from Rs.4.8 billion to Rs.4.6 billion, YoY.

The company’s basic and diluted earnings per share during the year dropped from Rs.8.81 per share to Rs.7.92 per share.

Financial Results for the Year ended June 30th 2018 ('000 Rupees)
	Jun-18	Jun-17	% Change
Sales - net	25,684,164	23,885,410	7.53%
Cost of goods sold	(17,158,820)	(14,509,777)	18.26%
Gross profit	8,525,344	9,375,633	-9.07%
Distribution cost	(1,229,515)	(1,275,182)	-3.58%
Administrative expenses	(739,264)	(636,170)	16.21%
Other charges	(436,443)	(536,369)	-18.63%
	(2,405,222)	(2,447,721)	-1.74%
Other income	63,036	115,922	-45.62%
Profit from operations	6,183,158	7,043,834	-12.22%
Finance cost	(847,318)	(174,247)	386.27%
Profit before taxation	5,335,840	6,869,587	-22.33%
Taxation	(763,035)	(2,093,275)	-63.55%
Profit after taxation	4,572,805	4,776,312	-4.26%
Basic and diluted earnings per share (Rupees)	7.92	8.81	-10.10%

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