Pakistan-based Maple Leaf Cement Factory Ltd (MLCF) has announced its consolidated financial results for the half year ended 31 December 2019. It incurred a net loss of PKR1.76bn (US$11.41m) as compared to profit of PKR1.33bn earned in the same period last year. This shows YoY losses at 32.5 per cent. The major factors responsible for this fall were the increase in cost of sales and the huge finance cost.
A local brokerage house while reviewing Maple Leaf financial results has pointed out that the sector’s margins have remained under pressure due to the ongoing price war amid excess cement capacity and that is being reflected negatively on financial results of the cement companies in Pakistan.
The company sales increased by 30.2 per cent to PKR16.18bn from PKR12.43bn in the same period last year. The finance cost was increased to PKR1.66bn from PKR720m during this accounting period.
The company incurred a higher distribution cost and administrative expenses to PKR454m against PKR389m and PKR392m against PKR357m respectively in the same half yearly period last year.