Lucky Cement Reports Strong Financial Performance Amid Export Growth

Karachi: Lucky Cement Ltd. (LUCK) revealed a robust financial performance during its FY25 analyst briefing, highlighting significant growth in earnings and export sales. The company reported a notable 18% increase in standalone earnings, reaching PkR33.1 billion, up from PkR28.1 billion in the same period last year, driven by higher dividend income and increased sales volume. Consolidated earnings also rose by 17% year-on-year, amounting to PkR84.5 billion.

Despite a 6% decline in local cement offtakes to 5.9 million tons, Lucky Cement’s export offtakes surged by 53% to 3.4 million tons, fueled by improved global demand, particularly from Africa. This surge elevated the company’s export market share to 36.6%, compared to 30.7% in the previous year.

Foreign operations in Iraq and DR Congo maintained high utilization levels, with plants operating at 95% and 85%, respectively. Average local retention prices were reported at PkR15.5k per ton, with export prices for cement and clinker at US$41 and US$31 per ton, respectively.

Lucky Cement’s management highlighted the successful commissioning of a 28.8MW captive wind power project at the South plant, now meeting 55% of its power requirement through renewables. Additionally, the company is conducting due diligence for the acquisition of the national flag carrier, PIA.

Management anticipates a 5% growth in domestic offtakes for FY26, although recent flooding is not expected to significantly impact demand. The outlook for the auto and mobile phone segments is gradually improving, with a focus on operational optimization and affordable smartphones.

AKD Securities Limited maintains a ‘BUY’ stance on LUCK stock, with a target price of PkR558.6 per share by June 2026, citing improvements in core margins, increased dividends from the power segment, and expected recovery in cyclical segments as key factors.