Lahore: Maple Leaf Cement Factory Ltd. (MLCF) unveiled its financial results for the fiscal year 2024, marking a significant year with the highest annual earnings recorded and a noticeable improvement in profit margins. The company’s consolidated earnings reached PkR6.9 billion, an increase from the previous year’s PkR5.8 billion, with earnings per share (EPS) growing to PkR6.6 from PkR5.4.

According to AKD Securities Limited, Maple Leaf Cement’s performance in the fourth quarter was particularly strong, with earnings of PkR1.5 billion, contrasted with a loss of PkR413 million in the same period last year. This turnaround is attributed primarily to the absence of a super tax which impacted the prior year’s figures. The company’s sales rose by 5% year-over-year to PkR15.7 billion during the quarter, driven by a 12% increase in retention prices, although the volume of sales dropped by 9%.

The company also benefited from a significant expansion in gross margins, which increased to 38.4% from 24.8% in the prior year, thanks primarily to higher retention prices and lower coal and pet coke costs. Despite a sharp increase in distribution costs, up more than fourfold due to a 40% rise in exports and the effects of axle load regulations, the company managed to reduce its finance costs by 4% year-over-year due to a decrease in borrowings.

Furthermore, the board has approved substantial investments, providing loans and advances of up to PkR1.0 billion each to its holding company KTML and associate MLCL. AKD Securities maintains a ‘Buy’ stance on MLCF, projecting a potential capital appreciation of 63% with a target price of PkR56 per share by June 2025.