Trade Chronicle May & June 2015

TRADE CHRONICLE
Cement Companies
Financal Reports
LUCKY CEMENT: The company
announced 9MFY15 consolidated
earnings at Rs10.3bn (eps Rs31.8),
up 20pc YoY. The results beat
market consensus estimates. On a
standalone basis, Lucky reported
9MFY15 eps of Rs28.8, up 14pc
YoY.
Supported by 4pc volumetric
growth in cement sales and 1pc
growth in net retention price, the
topline of the company grew 5pc to
Rs33.1bn versus Rs31.4bn in
9MFY14. On a quarterly basis, net
earnings improved by 14pc YoY to
Rs9.3bn. On a consolidated basis,
Lucky’s net earnings grew by 20pc
YoY in 9MFY15. The growth
emanated from its subsidiary ICI
Pakistan and joint venture
operations of cement grinding mill
in Iraq.
Local volumes grew 7pc to 3.1m
tonnes in 9MFY15 compared to 3m
tonnes in the same period last year.
However, export sales during the
same period declined by 0.5pc to
1.85m tonnes from 1.86m tonnes a
year ago.
DG KHAN CEMENT: DGKC
announced 9MFY15 consolidated
earnings of Rs5.6bn (eps Rs12.8),
up 42.5pc YoY. The results were
above market consensus estimates.
On a standalone basis, DGKC
recorded revenue of Rs18.9bn (eps
Rs12.3) in 9MFY15, as against
Rs19.6bn (eps Rs9) last year, down
3pc YoY.
Total cement dispatches declined by
5pc due to lower exports. However,
local dispatches were higher on the
back of robust growth in private
Bestway acquires
Lafarge cement plant
Bestway Cement Limited, a
subsidiary of Bestway Group,
has taken over Lafarge Cement
plant located near Kallar Kahar,
Chakwal in Punjab.
To mark the acquisition, a
ceremony was held at the plant
recently, which was attended by
Sir Anwar Pervez, the owner of
Bestway Group and Amr Ali
Reda, the CEO of Lafarge
Pakistan, among others.
The announced assumption of
management control of Lafarge
Pakistan Cement Limited by
Bestway is followed by the
latter’s successful bid for 75.86
per cent of Lafarge Pakistan’s
sector demand and commencement
of mega construction projects
across the country.
In 9MFY15, financial charges
witnessed a decline of 56pc,
resulting in a 24pc YoY increase in
profit before tax to Rs6.5bn. On a
quarterly basis, net earnings in
3QFY15 increased by 55pc YoY to
Rs2bn, primarily due to Rs17 per
bag decline in cost of goods,
resulting in 600bps increase in gross
margins to 36pc.
MAPLE LEAF CEMENT:
MLCF announced 9MFY15
earnings at Rs2.3bn (eps Rs4.4)
down 3pc YoY, in line with market
shares for an enterprise value of
$329 million in July 2014.
Bestway Cement also acquired
another 12.07pc shares of the
company through the public
offer process taking its
shareholding in Lafarge Pakistan
to 87.93pc.
The acquisition of Lafarge
Pakistan’s 2.5 million tonnes per
annum cement plant by the
Bestway Cement will make it a
major cement manufacturer in
Pakistan with a total capacity of
more than 8 million tonnes per
annum, representing 18pc of the
total cement manufacturing
capacity in the country. Zameer
Choudrey, Bestway Group’s
Chief Executive, expressed his
commitment to invest $30 million
in the acquired company.
consensus estimates. However,
pre-tax profit increased by 29pc.
Key takeaways highlighted by
analyst Nabeel Khursheed at
Topline included: in 9MFY15,
MLCF recorded revenue of Rs15bn
as against Rs13.7bn last year which
was up 9pc, led by 9pc increase in
volumetric sales to 2.1m tonnes
compared to 1.9m tonnes in
9MFY15.
However, average net retention
prices remained flat at Rs363 per
bag. Financial charges on the other
hand witnessed a decline of 22pc
in 9MFY15. To highlight, MLCF has
considerably reduced its debt by
Rs6.1bn in the last two years.
Trade Chronicle - May - June 2015 - Page # 32