Pioneer Cement’s profit beats estimate buoyed by strong margins

September 18, 2024 (MLN): Pioneer Cement Limited (PSX: PIOC) posted a profit after tax of Rs1.35 billion [EPS: Rs5.94] in the quarter ending June 2024 and announced a final cash dividend of Rs10 per share.

That compares with industry expectations of Rs5.40 per share and a loss per share of Rs0.44 incurred in the same period last year (SPLY).

The strong performance was led by an increase in gross margins and a significantly lower tax rate.

Going by the results, the company's revenue fell 2.7% to Rs8.14bn as compared to Rs8.37bn in SPLY.

However, the cost of sales decreased by 14.3%, improving the gross profit by 29.3% to Rs2.88bn in Q4 FY24.

The gross margins rose to 35.4% as compared to 26.6% in SPLY.

Other income rose to Rs261.72m in Q4 FY24 as compared to just Rs8.3m in SPLY.

On the expense side, the company's administrative expenses rose 87.2% from a year ago to Rs94.02m, while selling and distribution expenses fell 44.3% to Rs26.81m.

The company’s finance cost inched lower by 2.3% and stood at Rs550.01m as compared to Rs562.66m in SPLY.

On the tax front, the company paid a significantly lower tax worth Rs759.58m against the Rs1.84bn paid in the corresponding period of last year, depicting a decrease of 58.6%.

This translates to an effective tax rate of 36.0% as compared to 105.8% in SPLY.

Amount in thousand except for EPS

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