Maple Leaf Cement’s Q2 profit drops by 23.5%
MG News | February 21, 2024 at 09:58 AM GMT+05:00
February 21, 2024 (MLN): Maple Leaf Cement Factory Limited (PSX: MLCF) revealed its earnings for the second quarter of fiscal year 2024, wherein the profit after tax clocked in at Rs2.24 billion [EPS: Rs2.09].
This marks a decrease from the profit of Rs2.93bn and EPS of Rs2.72 in the same period last year (SPLY), a fall of 23.44% YoY.
Going by the results, the company's top line increased by 4.93% YoY to Rs18.07bn as compared to Rs17.22bn in SPLY.
The cost of sales also rose by 4.76% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 5.24% YoY to Rs6.38bn in 2QFY24.
The gross margins improved slightly to 35.32% as compared to 35.21% in SPLY.
During the review period, other income inflated by 36.07% YoY to stand at Rs70.61m in 2QFY24 as compared to Rs51.89m in SPLY.
On the expense side, the company observed an increase in administrative expenses by 83.20% YoY and other expenses by 15.43% YoY to clock in at Rs576.47m and Rs302.07m respectively during the review period.
Moreover, the net impairment losses on financial assets rose three-fold to Rs90m during the quarter.
The company’s finance costs went up by 75.15% YoY and stood at Rs915.57m as compared to Rs522.72m in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs681.54m against the Rs1.16bn paid in the corresponding period of last year, depicting a fall of 41.35% YoY.
| Consolidated (un-audited) Financial Results for quarter ended 31 December, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales | 18,073,009 | 17,224,025 | 4.93% |
| Cost of sales | (11,690,486) | (11,159,463) | 4.76% |
| Gross Profit | 6,382,523 | 6,064,562 | 5.24% |
| Administrative expenses | (576,471) | (314,668) | 83.20% |
| Distribution cost | (1,644,449) | (895,538) | 83.63% |
| Net impairment losses on financial assets | (90,000) | (30,000) | 200.00% |
| Other Income | 70,608 | 51,890 | 36.07% |
| Other expenses | (302,073) | (261,705) | 15.43% |
| Finance cost | (915,573) | (522,722) | 75.15% |
| Profit before taxation | 2,924,565 | 4,091,819 | -28.53% |
| Taxation | (681,543) | (1,162,036) | -41.35% |
| Net profit for the period | 2,243,022 | 2,929,783 | -23.44% |
| Basic earnings/ (loss) per share | 2.09 | 2.72 | - |
Amount in thousand except for EPS
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