Lahore: Maple Leaf Cement (MLCF) announced its financial results for the fourth quarter of fiscal year 2026 today, revealing a significant increase in earnings that surpassed industry expectations. The company reported consolidated earnings of Rs4.2 billion for the quarter, translating to an earnings per share (EPS) of Rs4.07. This marks a 17% year-over-year increase and a 141% jump from the previous quarter. For the full fiscal year 2026, MLCF posted earnings of Rs11.8 billion, with an EPS of Rs11.34, reflecting a modest 3% rise from the previous year.
According to JS Global, the earnings exceeded forecasts primarily due to improved gross margins. The company recorded gross margins of 43.7% in the fourth quarter, up from 33% in the third quarter and 40% in the same period last year. This improvement was attributed to a change in the royalty calculation methodology, along with increased utilization of biomass fuels. The company's net revenue for the fourth quarter reached Rs28.1 billion, marking a 63% year-over-year increase and a 31% rise from the previous quarter. For the full fiscal year, revenue stood at Rs85.1 billion, up 24% from the previous year. The rise in revenue was largely driven by higher domestic dispatches and increased cement prices.
Administrative expenses saw a significant increase of 144% year-over-year in the fourth quarter, mainly due to one-off transaction-related costs and the consolidation of the Pioneer Cement business. Finance costs also surged, increasing by 401% year-over-year, primarily due to higher debt levels from a Rs76 billion loan for the PIOC acquisition. The effective tax rate for the fourth quarter was 40.0%, contributing to a cumulative effective tax rate of 37.4% for the fiscal year.
In addition to the earnings report, the Board of Directors approved investments of up to Rs2 billion each as loans or advances to KTML and MLCL to support their working capital needs. Despite the rising costs, JS Global maintains a Buy stance on MLCF, which is currently trading at a fiscal year 2027 estimated price-to-earnings ratio of 7.0x.