Maple Leaf losses more than double to Rs4.3b

The entire sector is feeling the heat as other cement giants also report falling profits during the period.

KARACHI: Maple Leaf Cement’s losses more than doubled to Rs4.3 billion in fiscal year 2010 against the previous year’s Rs1.67 billion.

The entire sector has felt the heat of a drop in cement prices during the fiscal year, said IGI Securities analyst Sana Abdullah. The prices in the domestic market were under pressure and declined by 26 per cent during the year.

Net sales of the company dropped 10 per cent to Rs13.6 billion, according to a communique sent to the Karachi Stock Exchange on Tuesday.

Sales have been disrupted in recent months owing to the damage to road networks, however, with reconstruction activities picking up following the floods local sales are expected to surge by around five per cent, said Abdullah on September 24 about the industry’s future.

The decline in sales, however, did not help cut distribution expense as it rose 34.76 per cent to Rs3.15 billion against preceding year’s Rs2.34 billion.

Other operating expense of the company also rose more than three times to Rs158.6 million against Rs42 million recorded in the previous year.

The whole sector has felt the heat as giants Lucky Cement and DG Khan Cement reported a profit fall of 31 and 55 per cent, respectively, during the same period.

Published in The Express Tribune, September 29^th, 2010.