Maple Leaf Cement Reports 7% Increase in Topline for FY24

Lahore: Maple Leaf Cement Factory Ltd. (MLCF) announced a 7% increase in its topline for FY24, reaching PkR66.4 billion, driven by improved retention prices. However, the company’s utilization fell to 45% due to weaker demand and increased capacity,

According to AKD Securities Limited. The company reported earnings of PkR6.9 billion, a 20% rise compared to the previous fiscal year. This increase was attributed to higher local retention prices, which averaged PkR14.9k per ton, an increase of 10.6% from the previous year. Current retention prices stand at PkR17.5k per ton, with a maximum retail price of PkR1,450 per bag.

Despite the positive financial performance, production costs surged due to a significant revision in royalty rates for limestone in Punjab, resulting in a 35% increase in raw material costs. The company’s fuel mix for FY24 was primarily reliant on imported coal and alternative fuels, with local coal comprising only 22% of the mix.

The power mix was dominated by coal-fired boilers, accounting for 62% of the generation, followed by waste heat recovery and solar sources. The company maintained a leading position in the white cement market with a 90% share and plans to increase its putty sales from 10.5k tons in FY24 to 13k tons in FY25.

AKD Securities Limited has issued a “Buy” recommendation for MLCF stock, projecting a potential upside of 42% with a target price of PkR56 per share by June 2025.

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