Lucky Cement’s Profits Drop 14% for FY 2018-19

Lucky Cement Limited, which is a leading player in Pakistan’s cement space, has announced its financial results for the year ending on June 30th, 2019.

On a standalone basis, the company posted a profit of Rs. 10.49 billion, down by 14% as compared with Rs. 12.19 billion in the previous year.

Along with the result, the company also announced a final cash dividend of Rs. 6.5 per share.

Overall sales of the company grew by 1% to Rs. 48.02 billion as compared with Rs. 47.54 billion. The cost of sales of the company increased by 11.27% to Rs. 34.03 billion compared with Rs. 30.05 billion for the previous fiscal year.

The increase was mainly on account of adverse Rupee exchange rate parity and market-driven increases in coal, packing material, and other fuel prices. The company saw an increase in lower margined exports.

This took the gross profit to Rs. 13.98 billion, down by 17.52% as compared with Rs. 16.95 billion in the same period last year.

The distribution cost increased by 36.68% to Rs. 2.72 billion. Other income of the company saw an increase as well as it was stated at Rs. 3.24 billion.

Earnings per share of the company decreased to Rs. 32.44 from Rs. 37.72 last year.

Export and Local Performance

The export performance of the company has been exceptional this year, which supported the overall industry by 1.9% at 46.76 million tons for the fiscal year ended June 30, 2019, in comparison to 45.90 million tons last year.

Export sales volumes increased by 37.4% to reach 6.5 million tons as compared to 4.75 million tons. However, the local sales volume declined by 2.2% to 40.24 million tons as compared with 41.15 million tons last year.

In comparison with the cement industry, the company’s overall sales volume declined by 1.8% to reach 7.67 million tons during the current financial year.

Consolidated Results

On a consolidated basis, Lucky Cement Limited reported a net profit after tax of Rs. 12.35 billion down by 23.62% as compared with a profit of Rs. 16.17 billion

The company achieved a gross turnover of Rs. 136.60 billion which is 9.6% higher as compared to last year’s turnover of Rs. 124.68 billion.

At the time of filing this report, LUCK’s shares at the bourse were trading at Rs. 375.75, down by Rs. 4.88 or -1.28% with a turnover of 71,500 shares on Monday.