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LCK/CS/2018-19/ January 31, 2019
The General Manager Pakistan Stock Exchange Limited Karachi | The Deputy Chief Securities & Exchange Commission of Pakistan Islamabad | The London Stock Exchange 10 Paternoster Square, London |
Dear Sir(s)
FINANCIAL RESULTS FOR THE HALF YEAR ENDED DECEMBER 31, 2018
This is to inform you that the Board of Directors of our Company in their meeting held on Thursday, January 31, 2019 at 11:30 a.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following:
(I) Cash Dividend Nil
(ii) Bonus Issue Nil
(iii) Right Issue Nil
(iv) Interim Dividend Nil
The financial results of the Company consisting of Statements of Financial Position, Statements of Profit and Loss and Other Comprehensive Income and Directors' Report are annexed.
The Half Yearly report of the Company for the period ended December 31, 2018 will also be transmitted through PUCARS separately, within the specified time.
Yours truly
for LUCKY CEMENT LIMITED
IRFAN CHAWALA
Director Finance / CFO
Unconsolidated Condensed Interim Statement of Financial Position |
| ||||||||||||
As at December 31, 2018 |
| ||||||||||||
|
|
|
|
| (Un-audited) |
| (Audited) |
|
| ||||
|
|
|
|
| December 31, |
| June 30, |
|
| ||||
|
|
|
|
| 2018 |
| 2018 |
|
| ||||
|
|
|
|
|
| (PKR in '000') |
|
| |||||
ASSETS |
|
|
|
|
|
|
|
|
|
| |||
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||||
| Fixed assets |
|
|
|
|
|
|
|
|
| |||
| Property, plant and equipment |
|
| 44,961,909 |
|
|
| 40,913,168 |
|
| |||
| Intangible assets |
|
| 39,622 |
|
|
| 55,023 |
|
| |||
|
|
|
|
|
| 45,001,531 |
|
|
| 40,968,191 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Long-term investments |
|
| 31,417,700 |
|
|
| 24,981,078 |
|
| |||
| Long-term loans and advances |
|
| 103,596 |
|
|
| 90,996 |
|
| |||
| Long-term deposits |
|
| 3,175 |
|
|
| 3,175 |
|
| |||
|
|
|
|
|
| 76,526,002 |
|
|
| 66,043,440 |
|
| |
CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||||
| Stores and spares |
|
| 8,050,866 |
|
|
| 7,783,111 |
|
| |||
| Stock-in-trade |
|
| 2,915,297 |
|
|
| 2,796,658 |
|
| |||
| Trade debts |
|
| 2,410,197 |
|
|
| 2,424,470 |
|
| |||
| Loans and advances |
|
| 423,023 |
|
|
| 420,671 |
|
| |||
| Trade deposits and short term prepayments |
|
| 78,062 |
|
|
| 67,577 |
|
| |||
| Accrued return |
|
| 197,352 |
|
|
| 142,881 |
|
| |||
| Other receivables |
|
| 1,512,116 |
|
|
| 1,311,180 |
|
| |||
| Tax refunds due from the Government |
|
| 538,812 |
|
|
| 538,812 |
|
| |||
| Short term investment |
|
| 525,329 |
|
|
| 34,956 |
|
| |||
| Cash and bank balances |
|
| 22,169,822 |
|
|
| 27,435,361 |
|
| |||
|
|
|
|
|
| 38,820,876 |
|
|
| 42,955,677 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
TOTAL ASSETS |
|
| 115,346,878 |
|
|
| 108,999,117 |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| |
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
|
| ||||
Share capital |
|
|
| 3,233,750 |
|
|
| 3,233,750 |
|
| |||
Reserves |
|
|
|
| 86,037,563 |
|
|
| 83,133,072 |
|
| ||
|
|
|
|
|
| 89,271,313 |
|
|
| 86,366,822 |
|
| |
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| |||
| Long-term deposits |
|
| 90,994 |
|
|
| 94,394 |
|
| |||
| Deferred liabilities |
|
| 7,032,294 |
|
|
| 7,300,639 |
|
| |||
|
|
|
|
|
| 7,123,288 |
|
|
| 7,395,033 |
|
| |
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||||
| Trade and other payables |
|
| 15,415,516 |
|
|
| 13,121,005 |
|
| |||
| Short term running finance |
|
| 1,000,000 |
|
|
| - |
|
| |||
| Unclaimed dividend |
|
| 59,716 |
|
|
| 47,945 |
|
| |||
| Unpaid dividend |
|
| 91,119 |
|
|
| 82,960 |
|
| |||
| Taxation - net |
|
| 2,385,926 |
|
|
| 1,985,352 |
|
| |||
|
|
|
|
|
| 18,952,277 |
|
|
| 15,237,262 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| 26,075,565 |
|
|
| 22,632,295 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
TOTAL EQUITY AND LIABILITIES |
|
| 115,346,878 |
|
|
| 108,999,117 |
|
| ||||
Unconsolidated Condensed Interim Statement of Profit or Loss and Other Comprehensive Income | |||||||||||||||||||
For the half year ended December 31, 2018 (Un-audited) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
| Half Year Ended |
| Quarter Ended |
| ||||||||||
|
|
|
|
|
| December 31, 2018 |
| December 31, 2017 |
| December 31, 2018 |
| December 31, 2017 |
| ||||||
|
|
|
|
|
| (PKR in '000') |
| (PKR in '000') |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Gross sales |
|
| 34,885,341 |
| 32,852,077 |
| 18,874,278 |
| 17,156,894 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Less: Sales tax and federal excise duty |
|
| 9,484,395 |
| 9,149,825 |
| 5,093,783 |
| 4,857,234 |
| |||||||||
| Rebates and commission |
|
| 445,871 |
| 448,424 |
| 230,488 |
| 249,613 |
| ||||||||
|
|
|
|
|
| 9,930,266 |
| 9,598,249 |
| 5,324,271 |
| 5,106,847 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net sales |
|
|
| 24,955,075 |
| 23,253,828 |
| 13,550,007 |
| 12,050,047 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cost of sales |
|
| (17,531,060) |
| (14,368,087) |
| (9,550,411) |
| (7,277,550) |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Gross profit |
|
|
| 7,424,015 |
| 8,885,741 |
| 3,999,596 |
| 4,772,497 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Distribution cost |
|
| (1,374,509) |
| (813,183) |
| (716,990) |
| (443,832) |
| |||||||||
Administrative expenses |
|
| (559,645) |
| (556,503) |
| (285,869) |
| (275,235) |
| |||||||||
Other expenses |
|
| (570,602) |
| (616,749) |
| (325,146) |
| (322,494) |
| |||||||||
Other income |
|
| 1,606,571 |
| 1,195,338 |
| 962,242 |
| 662,942 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Profit before taxation |
|
| 6,525,830 |
| 8,094,644 |
| 3,633,833 |
| 4,393,878 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Taxation |
|
|
|
|
|
|
|
|
|
|
| ||||||||
| -current |
|
| (1,433,590) |
| (1,486,683) |
| (883,235) |
| (553,578) |
| ||||||||
| -deferred |
|
| 408,549 |
| (60,828) |
| 257,360 |
| (310,450) |
| ||||||||
|
|
|
|
|
| (1,025,041) |
| (1,547,511) |
| (625,875) |
| (864,028) |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Profit after taxation |
|
| 5,500,789 |
| 6,547,133 |
| 3,007,958 |
| 3,529,850 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
| |||||||||
Other comprehensive loss which will not be reclassified to |
|
|
|
| |||||||||||||||
statement of profit or loss in subsequent periods |
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Unrealized loss on remeasurement of equity investment at fair value through other |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
| ||||||||||||
| comprehensive income |
|
| (10,938) |
| (5,805) |
| (4,602) |
| (690) |
| ||||||||
| Deferred tax thereon |
|
| 1,640 |
| 871 |
| 690 |
| 104 |
| ||||||||
|
|
|
|
|
| (9,298) |
| (4,934) |
| (3,912) |
| (586) |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total comprehensive income for the period | 5,491,491 |
| 6,542,199 |
| 3,004,046 |
| 3,529,264 |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
| (PKR) |
| (PKR) |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Earnings per share - basic and diluted | 17.01 |
| 20.25 |
| 9.30 |
| 10.92 |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Condensed Interim Consolidated Statement of Financial Position | |||||||||||
As at December 31, 2018 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Un-audited) |
|
|
| (Audited) |
|
|
|
|
|
|
| December 31, |
| June 30, |
| ||
|
|
|
|
|
| 2018 |
|
|
| 2018 |
|
|
|
|
|
|
| (PKR in '000') |
| ||||
ASSETS |
|
|
|
|
|
|
|
|
| ||
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
| |||
| Fixed assets |
|
|
|
|
|
|
|
|
| |
| Property, plant and equipment |
|
| 92,449,115 |
|
|
| 73,865,002 |
| ||
| Intangible assets |
|
| 7,775,543 |
|
|
| 7,943,988 |
| ||
|
|
|
|
|
| 100,224,658 |
|
|
| 81,808,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
|
| 15,373,556 |
|
|
| 13,642,987 |
| ||
| Long-term loans and advances |
|
| 565,605 |
|
|
| 534,786 |
| ||
| Long-term deposits and prepayments |
|
| 47,192 |
|
|
| 53,325 |
| ||
|
|
|
|
|
| 116,211,011 |
|
|
| 96,040,088 |
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||
| Stores, spares and consumables |
|
| 9,194,878 |
|
|
| 8,854,536 |
| ||
| Stock-in-trade |
|
|
| 12,849,417 |
|
|
| 12,088,621 |
| |
| Trade debts |
|
|
| 4,814,834 |
|
|
| 5,142,591 |
| |
| Loans and advances |
|
| 1,760,554 |
|
|
| 1,117,485 |
| ||
| Trade deposits and short-term prepayments |
|
| 3,149,789 |
|
|
| 1,108,185 |
| ||
| Other receivables |
|
| 3,727,796 |
|
|
| 3,431,926 |
| ||
| Tax refunds due from the Government |
|
| 538,812 |
|
|
| 538,812 |
| ||
| Taxation receivable |
|
| 2,145,076 |
|
|
| 2,221,851 |
| ||
| Accrued return |
|
|
| 206,077 |
|
|
| 161,742 |
| |
| Short term investments |
|
| 525,329 |
|
|
| 34,956 |
| ||
| Cash and bank balances |
|
| 25,707,497 |
|
|
| 34,382,272 |
| ||
|
|
|
|
|
| 64,620,059 |
|
|
| 69,082,977 |
|
TOTAL ASSETS |
|
|
| 180,831,070 |
|
|
| 165,123,065 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
| |||
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
| 3,233,750 |
|
|
| 3,233,750 |
| ||
Reserves |
|
|
| 98,836,312 |
|
|
| 93,913,157 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to the owners of the Holding Company |
|
| 102,070,062 |
|
|
| 97,146,907 |
| ||
| Non-controlling interests |
|
| 14,864,553 |
|
|
| 12,428,264 |
| ||
| Total equity |
|
|
| 116,934,615 |
|
|
| 109,575,171 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term finances |
|
| 11,494,906 |
|
|
| 8,789,887 |
| ||
| Long-term deposits |
|
| 90,994 |
|
|
| 94,394 |
| ||
| Deferred liabilities |
|
| 10,113,142 |
|
|
| 10,640,736 |
| ||
| Other long term liabilities |
|
| 4,130,772 |
|
|
| 3,431,948 |
| ||
|
|
|
|
|
| 25,829,814 |
|
|
| 22,956,965 |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |||
| Trade and other payables |
|
| 24,595,554 |
|
|
| 20,242,935 |
| ||
| Unclaimed dividend |
|
| 59,716 |
|
|
| 47,945 |
| ||
| Unpaid dividend |
|
|
| 91,119 |
|
|
| 82,960 |
| |
| Provision for taxation |
|
| 2,385,926 |
|
|
| 1,992,278 |
| ||
| Accrued return |
|
|
| 326,697 |
|
|
| 272,146 |
| |
| Short-term borrowings and running finance |
|
| 7,977,487 |
|
|
| 7,332,327 |
| ||
| Current portion of liabilities against assets subject to finance lease |
| 134 |
|
|
| 822 |
| |||
| Current portion of long-term finances |
|
| 2,630,008 |
|
|
| 2,619,516 |
| ||
|
|
|
|
|
| 38,066,641 |
|
|
| 32,590,929 |
|
|
|
|
|
|
| 63,896,455 |
|
|
| 55,547,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
| 180,831,070 |
|
|
| 165,123,065 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income | ||||||||||||
For the half year ended December 31, 2018 (Un-audited) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Half Year Ended |
| Quarter Ended |
| ||||
|
|
|
|
| December 31, | December 31, | December 31, | December 31, | ||||
|
|
|
|
| 2018 |
| 2017 |
| 2018 |
| 2017 |
|
|
|
|
|
| (PKR in '000') |
| (PKR in '000') |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
| 67,854,061 |
| 59,766,088 |
| 36,538,607 |
| 31,082,652 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Sales tax and excise duty |
| 11,301,849 |
| 10,554,415 |
| 6,058,883 |
| 5,592,056 |
| |||
| Rebates and commission |
| 2,832,361 |
| 2,457,306 |
| 1,604,495 |
| 1,319,084 |
| ||
|
|
|
|
| 14,134,210 |
| 13,011,721 |
| 7,663,378 |
| 6,911,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 53,719,851 |
| 46,754,367 |
| 28,875,229 |
| 24,171,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
| (42,020,952) |
| (33,587,614) |
| (22,764,288) |
| (17,093,671) |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
| 11,698,899 |
| 13,166,753 |
| 6,110,941 |
| 7,077,841 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution cost |
|
| (2,837,830) |
| (2,152,288) |
| (1,454,128) |
| (1,140,194) |
| ||
Administrative expenses |
| (1,531,627) |
| (1,442,077) |
| (775,797) |
| (821,054) |
| |||
Finance cost |
|
| (774,333) |
| (314,595) |
| (417,120) |
| (149,498) |
| ||
Other expenses |
|
| (901,980) |
| (1,111,190) |
| (560,207) |
| (712,471) |
| ||
Other income |
|
| 1,923,716 |
| 2,196,681 |
| 770,974 |
| 972,943 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation |
| 7,576,845 |
| 10,343,284 |
| 3,674,663 |
| 5,227,567 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
|
|
|
| ||
| - current |
|
| (2,123,114) |
| (1,916,509) |
| (1,059,506) |
| (654,580) |
| |
| - deferred |
|
| 683,531 |
| 150,104 |
| 360,315 |
| (163,839) |
| |
|
|
|
|
| (1,439,583) |
| (1,766,405) |
| (699,191) |
| (818,419) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation |
| 6,137,262 |
| 8,576,879 |
| 2,975,472 |
| 4,409,149 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
| ||
Owners of the Holding Company |
| 5,795,505 |
| 7,914,236 |
| 2,839,705 |
| 4,067,067 |
| |||
Non-controlling interests |
| 341,757 |
| 662,643 |
| 135,767 |
| 342,082 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6,137,262 |
| 8,576,879 |
| 2,975,472 |
| 4,409,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income for the period |
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income which may be reclassified to statement of |
|
|
|
|
| |||||||
profit or loss in subsequent periods |
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign exchange differences on translation of foreign operations | 1,200,556 |
| 363,078 |
| 1,011,443 |
| 327,092 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss which will not be reclassified to statement of |
|
|
|
|
| |||||||
profit or loss in subsequent periods |
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized loss on remeasurement of equity investment at fair value through other comprehensive income | (10,938) |
| (5,805) |
| (4,602) |
| (690) |
| |||
| Deferred tax thereon |
| 1,640 |
| 871 |
| 690 |
| 104 |
| ||
|
|
|
|
| (9,298) |
| (4,934) |
| (3,912) |
| (586) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
| 7,328,520 |
| 8,935,023 |
| 3,983,003 |
| 4,735,654 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
| ||
Owners of the Holding Company |
| 6,986,763 |
| 8,272,380 |
| 3,847,236 |
| 4,393,572 |
| |||
Non-controlling interests |
| 341,757 |
| 662,643 |
| 135,767 |
| 342,082 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,328,520 |
| 8,935,023 |
| 3,983,003 |
| 4,735,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (PKR) |
| (PKR) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted |
| 17.92 |
| 24.47 |
| 8.78 |
| 12.58 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' Report (Condensed)
The Directors have the pleasure in presenting to you the financial results of your Company which include both, stand-alone (duly reviewed by the auditors) and consolidated unaudited financial statements for the half year ended December 31, 2018.
Overview
Cement industry in Pakistan grew by 3.9% to 23.12 million tons during the half year ended December 31, 2018 in comparison to 22.24 million tons during the same period last year. While local sales volume registered a decline of 1.4% to 19.56 million tons during the half year in comparison to 19.84 million tons during the same period last year; export sales volume registered an increase of 47.9% to 3.56 million tons during the half year under review as compared to 2.41 million tons reported in the same period last year.
In comparison to the Cement Industry, your Company's overall sales grew by 6.8% to reach 4.01 million tons during the current half year under review; where, local cement sales volume registered a decline of 6.8% (North 10.8% and South 2.1%) in the current half year to reach 2.99 million tons in comparison to 3.21 million tons in the same period last year. On the other hand, export sales volumes of your Company more than doubled in the current half year and improved by 109.0% to reach 1.02 million tons as compared to 0.49 million tons during the same period last year.
On a consolidated basis, your Company achieved a gross turnover of PKR 67.85 billion which is 13.5% higher as compared to the same period last year's turnover of PKR 59.77 billion.
Moreover, consolidated Net Profit of the Company was PKR 6.14 billion of which PKR 0.34 billion is attributable to non-controlling interests which translates into an EPS of PKR 17.92 during the current half year ended December 31, 2018 as compared to PKR 24.47 during the same period last year.
Business Performance
a. Production & Sales Volume Performance - Standalone
The standalone production and sales statistics of your Company for the current half year ended December 31, 2018 compared to the same period last year are as follows:
Particulars | Half Year 2018-19 (Tons in ‘000’) | Half Year 2017-18
| Growth / (Decline) %
|
| |||
|
|
| |
Clinker Production | 3,742 | 3400 | 10.1% |
Cement Production | 3,458 | 3,677 | (6.0%) |
Cement Sales | 3,501 | 3,698 | (5.3%) |
Clinker Sales | 513 | 59 | 769.5% |
The production and sales volume data is graphically presented as under:
A comparison of the dispatches of the industry and your Company's standalone business for the current half year of the financial year 2018-19 with the same period last year is presented below:
Particulars
| Half Year 2018-19
|
| Half Year 2017-18
|
|
Growth / (Decline) % | ||
| (Tons in ‘000’) |
|
| ||||
|
|
|
|
|
|
|
|
Cement Industry |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local Sales | 19,558 |
| 19,836 |
| (278) |
| (1.4%) |
|
|
|
|
|
|
|
|
Export Sales |
|
|
|
|
|
|
|
- Bagged | 2,205 |
| 2,326 |
| (121) |
| 5.2% |
- Loose | 39 |
| 81 |
| (42) |
| (51.9%) |
- Clinker | 1,316 |
| - |
| 1,316 |
| 100.0% |
Total Exports | 3,560 |
| 2,407 |
| 1,153 |
| 47.9% |
Grand Total | 23,118 |
| 22,243 |
| 875 |
| 3.9% |
|
|
|
|
|
|
|
|
Lucky Cement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local Sales |
|
|
|
|
|
|
|
- Cement | 2,992 |
| 3,209 |
| (217) |
| (6.8%) |
- Clinker | - |
| 59 |
| (59) |
| (100.0%) |
Total Local Sales | 2,992 |
| 3,268 |
| (276) |
| (8.4%) |
|
|
|
|
|
|
|
|
Export Sales |
|
|
|
|
|
|
|
- Bagged | 470 |
| 408 |
| 62 |
| 15.2% |
- Loose | 39 |
| 81 |
| (42) |
| (51.9%) |
- Clinker | 513 |
| - |
| 513 |
| 100.0% |
Total Exports | 1,022 |
| 489 |
| 533 |
| 109.0% |
Grand Total | 4,014 |
| 3,757 |
| 257 |
| 6.8% |
|
|
|
|
|
|
|
|
Market Share | Half Year 2018-19
|
| Half Year 2017-18
|
| Growth / (Decline) % |
|
|
Local Sales | 15.3% |
| 16.5% |
| (7.3%) |
|
|
Export Sales |
|
|
|
|
|
|
|
- Bagged | 21.3% |
| 17.5% |
| 21.7% |
|
|
- Loose | 100.0% |
| 100.0% |
| 0.0% |
|
|
- Clinker | 39.0% |
| - |
| 100.0% |
|
|
Total Export | 28.7% |
| 20.3% |
| 41.4% |
|
|
Grand Total | 17.4% |
| 16.9% |
| 3.0% |
|
|
b. Financial Performance - Standalone
The standalone financial performance of your Company for the half year ended December 31, 2018 as compared to the same period last year is presented below:
| |||||||||||||||||||||||||||||||||||||||||
Revenue During the half year of 2018-19 under review, your Company achieved an overall gross sales revenue growth of 6.2% as compared to the same period last year. This was mainly attributable to higher export volumes for clinker and cement. |
Cost of Sales During the half year under review, per ton cost of sales of your Company increased by 14.2% as compared to the same period last year. This increase was mainly on account of increase in coal, packing material and other fuel prices. | ||||||||||||||||||||||||||||||||||||||||
Distribution of Gross Revenue | Distribution of Cost of Sales |
Gross Profit Your Company achieved a gross profit margin of 29.7% for the half year under review as compared to 38.2% reported during the same period last year. |
|
Net Profit
Your Company achieved a profit before tax of PKR 6,525.8 million during the half year under review as compared to PKR 8,094.6 million reported during the same period last year. Similarly, after tax profit of PKR 5,500.8 million was achieved during the half year under review as compared to PKR 6,547.1 million reported during the same period last year.
|
|
Earnings per share
The earnings per share of your Company for the half year ended December 31, 2018 was PKR 17.01 in comparison to PKR 20.25 reported during the same period last year. |
|
Projects - New and Ongoing
Brownfield cement plant expansion in KPK Province of Pakistan - 2.6 million tons per annum
The civil works are progressing as per schedule and plant & machinery shipments have started arriving at the project site. The erection and fabrication work is also progressing satisfactorily and as per schedule to achieve commercial operations in the second quarter of financial year 2019-20.
Investments
Investment in 1 x 660 MW, supercritical, coal based power project
The construction activity for setting up 660 MW super critical, lignite coal based power plant is progressing well and as per project implementation schedule. Target to achieve commercial operations remains 1st March 2021.
Investment in automotive manufacturing plant - Kia Lucky Motors Pakistan Limited [KLM]
On 1st June 2018, KLM started its Complete Built Up (CBU) operations. It has opened up, company owned / third party operated dealerships in some of the metro cities of Pakistan. Target to start commercial production is for the first quarter of financial year 2019-20.
Greenfield clinker production facility in Samawah, Iraq - 1.2 million tons per annum
The project has achieved financial close and the letter of credit to import plant and machinery was opened in the month of December 2018. Levelling work at project site started in the month of January 2019 and civil works are expected to commence in March 2019. Target to achieve commercial production is for the last quarter of financial year 2019-20.
Corporate Social Responsibility
Your Company remains committed to value creation in the society and the communities in which it operates, with primary focus of its CSR initiatives in Education, Women empowerment, Community development, Health and Environment conservation.
Education / Scholarships
Continuing on the agenda to support deserving students, during the first half of the financial year under review, your Company extended a number of scholarships to various students of LUMS, IBA and other leading universities in Pakistan and abroad.
Women Empowerment
Prioritizing its emphasis on women empowerment, your company continued to extend its full support for two leading Government girls' schools in Karachi in collaboration with Zindagi Trust. With the primary objective of social intervention in the development of women's education in the Country, your Company has transformed these schools into model educational institutions for girls of Pakistan.
Community development
Working on the key agenda of Community development; your Company sponsored certain events of World Memon Organization, which is known for its charitable initiatives and donations for community development. Furthermore, your Company also made contributions for certain annual events organized by Special Olympics Pakistan.
Health Initiatives
Provision of quality healthcare has remained your Company's priority, especially through financial support to Aziz Tabba Foundation: a prominent philanthropic institution that is running Tabba Heart and Tabba Kidney institutes, which provide vital support in bridging the gap of specialized and modern medical care in the Country. In this regard, your company also provided financial support to the First International Pediatric Urology Congress, held by the Tabba Kidney Institute.
Environment Conservation
Your Company always takes serious responsibility towards the environment. In an effort to highlight the importance of environment conservation during the first half of the financial year under review, a tree plantation drive was launched and free tree saplings were distributed amongst the employees to contribute towards making Pakistan greener and environment friendly.
Outlook
The future outlook for the Cement industry remains promising and your Company remains hopeful for improvement in domestic sales going forward on account of Government's key initiatives to build both small and mega-capacity / multipurpose water reservoirs / dams and '5 million housing scheme' to construct affordable houses for public at large; whereas, export sales are anticipated to remain strong in view of favorable market dynamics and increasing demand for Clinker in the regional countries.
Your Company believes that its strong financial position and free cash flow generating ability can continue to support investments in projects and avenues which can bring in further operational efficiencies and enhance shareholders' value.
Acknowledgement
Directors of your Company take pleasure in expressing their sincere gratitude and appreciation for excellent commitment and contribution of all the employees and continued trust and confidence placed in the Company by all the stakeholders.
On behalf of the Board
MUHAMMAD YUNUS TABBA MUHAMMAD ALI TABBA
Chairman / Director Chief Executive / Director
Karachi: January 31, 2019
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