KARACHI: Maple Leaf Cement Factory Ltd. (MLCF) has announced its financial results for the second quarter of the fiscal year 2026, revealing a decline in profitability attributed to lower retention prices and increased coal costs. The company's consolidated profit for the quarter stood at PkR3.1 billion, representing a 17% decrease from the PkR3.7 billion reported in the same period last year.

According to AKD Securities Limited, the company's revenue remained flat year-on-year at PkR18.9 billion. This was due to a 7% decrease in retention prices, which offset a 6% growth in cement offtakes. The gross margins saw a contraction, dropping to 34.7% from 39.8% in the corresponding period last year, influenced by the combined impact of reduced retention prices and higher average coal costs.

Distribution expenses for the quarter declined by 21% to PkR822 million, a change primarily driven by a 74% reduction in exports following the closure of the Afghan border. The company's earnings were in line with expectations, despite the challenges posed by external market conditions.