MLCF Q1 2024 profit drops 25% YoY

April 25, 2024 (MLN): Maple Leaf Cement Factory Limited (PSX: MLCF) recorded a decrease of 24.8% YoY in its profitability in the first three months of 2024, clocking in its profit after tax at Rs1.13 billion [EPS: Rs1.05], compared to a profit of Rs1.5bn [EPS: Rs1.40] in the same period last year (SPLY).

Going by the results, the company's top line contracted by 6.2% YoY to Rs15.98bn as compared to Rs17.04bn in SPLY.

The cost of sales also fell by 9.8% YoY but was lesser than proportionate to sales decline, which worsoned the gross profit by 4.8% YoY to Rs4.44bn in 1Q2024.

The gross margins, however, improved to 27.78% as compared to 24.87% in SPLY.

During the review quarter, other income grew by 5x YoY to stand at Rs161.89m in 1Q2024 as compared to Rs32.28m in SPLY.

On the expense side, the company observed a rise in administrative expenses by 22.5% YoY while recuing other expenses by 91.2% YoY to clock in at Rs441.11m and Rs30.36m respectively during the review period.

The company’s finance cost went up by 88.1% YoY and stood at Rs936.43m as compared to Rs497.8m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs745.2m against the Rs765.93m paid in the corresponding period of last year, depicting a fall of 2.7% YoY.

Amount in thousand except for EPS

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