Pakistani cement companies have been declaring losses or fall in profit during the last six months of the ongoing fiscal year of 2019-20 on account of falling revenue, high cost of sales and financing charges.
Flying Cement Co reported a loss after taxation of PKR293.4m (US$1.9m) during the half-year ended 31 December 2019 compared to a profit of PKR77.7m earned in the corresponding period last year. The key factor in the loss is the high cost of sales and reduced revenue during this period.
Company sales decreased by 48.1 per cent to PKR928m from PKR1.79bn in the same period last year. The company incurred higher administrative expenses of PKR34.4m against PKR27.9m and lower selling distribution costs of PKR3.3m when compared with PKR5.13m in the same period last year.
Meanwhile, Dandot Cement Co posted a higher loss after taxation of PKR383m during 1HY19, compared to a loss of PKR177m in the corresponding period last year. The major factors responsible for the loss were lower sales and high finance cost.
The company sales decreased by 79 per cent to PKR153m from PKR741m in the same period last year. The company incurred a higher distribution cost and lesser administrative expenses to PKR3.581m against PKR2.781m and PKR20m against PKR28m, respectively, in the same period last year.