Pioneer Cement declares Rs5 dividend as profit spikes to Rs2.63bn in 1HFY24

February 28, 2024 (MLN): Pioneer Cement Limited (PSX: PIOC) recorded an increase of 49.08% YoY in its earnings for 1HFY24, reporting a profit after tax at Rs2.63 billion [EPS: Rs11.56], compared to a profit of Rs1.76bn [EPS: Rs7.75] in the same period last year (SPLY).

Considering this boost in profitability, the Board of Directors of the company has recommended an Interim cash dividend of Rs5 per share i.e.50%.

Going by the results, the company's gross sales increased by 4.05% YoY to Rs26.1bn as compared to Rs25.08bn in 1HFY23.

However, with PIOC's total sales tax, duty, commission, and discounts rising by 13.01% YoY, the growth in net revenue reduced to 0.96% YoY to clock in at Rs18.82bn in 1HFY24.

The cost of sales was recorded at Rs12.68bn, down 8.93% YoY due to which the gross profit of the company improved by 30.11% YoY to Rs6.14bn in 1HFY24.

On the expense side, the company observed a rise in Distribution cost by 79.21% YoY and other expenses by 5.39% YoY to clock in at Rs110.39m and Rs254.36m respectively during the review period.

Likewise, the administrative expenses of PIOC surged 2.03x YoY and were recorded at Rs161.94m in 1HFY24.

The income statement further shows that other income skyrocketed by 6.92x YoY to stand at Rs117.1m in 1HFY24 as compared to Rs16.92m in SPLY.

The company’s finance cost decreased by 10.86% YoY and stood at Rs1.58bn as compared to Rs1.77bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs1.72bn against the Rs817.31m paid in the corresponding period of last year, depicting an increase of 110.71% YoY.

Amount in thousand except for EPS

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