Lahore: Pioneer Cement Limited (PIOC) has declared its financial results for FY24, revealing earnings of PKR 5.2 billion, with an earnings per share (EPS) of PKR 22.8. This marks a substantial increase from the PKR 2.6 billion and EPS of PKR 11.5 reported in the previous year. The company also announced a final cash dividend of PKR 10 per share.

According to AKD Securities Limited, the company’s performance for the fourth quarter of FY24 included earnings of PKR 1.3 billion, a significant turnaround from a loss of PKR 100 million in the same quarter of the previous year, which was mainly due to higher taxation. The final cash dividend issued was double the expected PKR 5 per share.

Pioneer Cement’s sales in the fourth quarter totaled PKR 8.1 billion, slightly down by 3% year-over-year, primarily due to a 13% annual decrease in offtakes to 0.53 million tons. However, this decline was partially mitigated by a 12% increase in retention prices year-over-year. Gross margins improved notably to 35.4% compared to 26.6% in the same period last year, driven largely by the increased cement prices.

Operating expenses for the company rose to PKR 438 million, largely due to higher administrative expenses and contributions to the Workers’ Welfare Fund (WWF) and Workers’ Profit Participation Fund (WPPF). The effective tax rate for the quarter was reported at 36%, with the full-year rate at 38%.

For the future, AKD Securities set a June 2025 target price for PIOC at PKR 185 per share, indicating a potential capital upside of 7% and a dividend yield of 12% for FY25.