MLCF misses quarterly earning estimates as revenue falls

October 24, 2024 (MLN): Maple Leaf Cement Factory Limited (PSX: MLCF) missed analysts' estimates for first-quarter revenue on Thursday, hurt by lower revenue and higher expense costs.

The company recorded a consolidated net profit of Rs1.34 billion in quarter ending September 2024. That translates to an earnings per share of Rs1.28, lower than the analysts' estimates of Rs1.56 per share.

That was also lower compared to the EPS of Rs1.52 in the same period of last year.

Going by the results, the company's top line contracted by 5.7% to Rs15.72bn as compared to Rs16.68bn in SPLY.

The cost of sales also fell by 6.0% but was higher than proportionate to sales decline, which worsened the gross profit by 5.1% to Rs4.96bn in Q1 FY25.

The gross margins, however, inched slightly higher to 31.6% as compared to 31.3% in SPLY.

During the period under review, other income slid by 26.8% to stand at Rs55.28m in Q1 FY25 as compared to Rs75.49m in SPLY.

On the expense side, the company's distribution cost rose 17.0% from a year ago to Rs1.35bn, while administrative expenses rose 43.9% to Rs586.17m.

The company’s finance cost marked a decline of 28.7% and stood at Rs674.51m as compared to Rs945.96m in SPLY.

On the tax front, the company paid a lower tax worth Rs756.91m against the Rs836.44m paid in the corresponding period of last year, depicting a fall of 9.5%.

Amount in thousand except for EPS

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