Karachi, February 26, 2020 (PPI-OT): Maple Leaf Cement Factory Limited – Substantial erosion in gross margins continue losses; drag 2QFY20 LPS to PKR 0.71, down 2xYoY
Maple Leaf Cement Factory Limited (MLCF) announced its financial results for 2QFY20 with consolidated net loss of PKR 785mn (Fully Diluted LPS: PKR 0.71), down by 2xYoY, as compared to PKR 748mn (EPS: PKR 0.68) reported in the same period last year. This accumulates 1HFY20 consolidated net loss to PKR 1.77bn (LPS: PKR 1.61) as against PKR 1.34bn (EPS: PKR 1.22) reported in the comparative period.
Net sales of the Company during 2QFY20 grew by +35%YoY as against the comparative period owing majorly to enhanced dispatches made during the period.
Gross profit margins of the Company during the quarter have reduced massively to 6% as against 29% recorded in the comparative period. The significant decline is owed primarily to substantial decline in retention prices of local cement dispatches that have dropped by 27%YoY as against the comparative period. However, gross margins have improved as against the sequential quarter (1QFY20) possibly due to advantage taken of certain markets where temporary rise in demand kept prices floated.
Finance charges of the Company have jumped up more than 2\two folds driven largely from elevated finance costs due from recent expansion and higher short term borrowing requirements amid a peaked interest rate scenario.