Karachi January 31 2022: On a consolidated basis, Lucky Cement Limited (LUCK) achieved a gross turnover of PKR 154.50 billion in first half of current financial year 2022 (July – December) which is 24.9 percent higher as compared to the same period last year’s turnover of PKR 123.72 billion.
Company’s profitability jumped by 37.8 percent to PKR 17.15 billion in first half of fiscal year 2022
Moreover, the consolidated Net Profit of the Company was PKR 17.15 billion of which PKR 4.01 billion is attributable to non-controlling interests. The consolidated net profit attributable to owners of the Holding Company translates into an EPS of PKR 40.66 during the current half year ended December 31, 2021 as compared to PKR 32.05 during the same period last year.
The increase in Net Profit was mainly attributable to the stellar performance of Company’s Chemicals business. Apart from the one-off unrealized accounting gain recognized on acquisition of controlling shares in NutriCo Pakistan amounting to PKR 1.847 billion, the Chemical business achieved considerable improvement in net profitability on account of impressive growth in its Polyester, Pharma and Animal Health business segments. In the automobile business, Lucky Motor Corporation introduced Kia Stonic in its lineup as well as started commercial production of Samsung branded mobile phones during the half year under review, which supported the growth in sales revenue. Whereas, profitability of Company’s overseas operations increased mainly due to improvement in sales volume and operations of Company’s Joint Venture Greenfield cement plant in Samawah, Iraq, which achieved its COD in March 2021.
Cement Industry and Company’s Performance — Unconsolidated
The industry-wide local sales volume registered a growth of 1.9 percent to reach 24.07 million tons during the first half under review versus 23.62 million tons during the same period last year. Export sales volumes showed a large decline of 32.5 percent to reach 3.39 million tons during 1HY 2021-22 compared to 5.02 million tons during the same period last year. As a result the total cement sales of the industry declined by 4.1 percent to 27.46 million tons during the first half ended December 31, 2021 in comparison to 28.64 million tons during the same period last year.
The decline in overall dispatches is mainly attributed to decline in export volumes on the back of volatily in coal prices and freight costs internationally, which have adversely impacted the viability of cement exports from Pakistan.
Lucky Cement local sales volumes remained almost in line with the corresponding period last year i.e. 3.63 million tons in 1HY 2021-22 versus 3.66 million tons in 1HY 2020-21. This trend for the Company versus marginal growth of the industry was mainly attributable to certain cement plants being nonoperational in the comparable period last year. Moreover, the export sales volumes of the Company decreased by 19.7 percent to 1.07 million tons as compared to 1.34 million tons during the same period last year, resulting in overall sales volumes declining by 5.9 percent to reach 4.70 million tons during 1HY 2021-22. This was due to reasons explained above which impacted the whole cement industry.
During the first half of 2021-22 under review, Company’s overall gross sales revenue increased by 20.2 percent as compared to the same period last year. Where local sales revenue showed an increase of 27.6 percent (PKR 43.68 billion vs PKR 34.24 billion), the export sales revenue declined by 12.01 percent (PKR 6.93 billion vs PKR 7.87 billion) respectively.
During the first half of 2021-22 under review, per ton cost of sales of Lucky Cement increased by 39.8 percent as compared to the same period last year. This was mainly due to an increase in coal prices along with other input costs.
The gross profit margin of the company for the half under review was 24.7 percent as compared to 28.5 percent reported during the same period last year. This was due to increase in input costs, which was partially offset, by increase in prices.
During the first half of 2021-22 under review, the dividend income received by Company from its subsidiaries and associate was PKR 1.31 billion.
Company achieved a profit before tax of PKR 7.59 billion during the first half under review as compared to PKR 5.52 billion reported during the same period last year. This was primarily on account of the increase in sales revenue and dividend income during the first half under review.
Accordingly, after-tax profit of PKR 5.77 billion was achieved during the first half under review as compared to PKR 4.54 billion reported during the same period last year.
The earnings per share of your Company for the first half ended December 31, 2021 was PKR 17.86 in comparison to PKR 14.04 reported during the same period last year.
