IGI Securities Limited – Flash Note (September 02, 2022)

Karachi, September 02, 2022 (PPI-OT): Cement – Maple Leaf Cement Factory Limited

Earnings: Maple Leaf Cement Factory Limited (MLCF) announced its’ full year Fy22 financial result, whereby the company reported earnings of PKR 3,626mn or PKR 3.3/share, down by 42%y/y. For the 4qFy22 alone the company reported earnings of PKR 35mn or PKR 0.03/share down by 95% q/q). Quarterly earnings decline depicts implementation of new taxes in budget FY23.

Dividends/Payouts: The Company did not announce dividend.

Operating performance: During the 4qFy22, company’s sales clocked in at PKR 14,408mn up by a +37%y/y on the back of higher retention prices. Moreover, company’s gross margins stood at 25% during the period compared to 21% in the same period last year. This takes full year gross margins to 25%. Improved gross margins symbolize efficient cost and coal inventory management by the company. During the period under review, company reported EBIT of PKR 8,925mn up by 2%y/y and 1xq/q. Margins wise, Company’s net margins clocked in at 7% during the year compared to previous year net margins of 18%. Effective tax for the company came in at 98% for the quarter mainly due to the higher tax measures imposed during the FY23 budget, including Super Tax and Poverty Alleviation Tax.