Lahore: Maple Leaf Cement Factory Ltd. (MLCF) has reported a significant increase in its financial performance for the fourth quarter of fiscal year 2025, with consolidated earnings reaching PkR3.6 billion, or PkR3.47 per share. This marks a 2.4 times increase compared to PkR1.5 billion, or PkR1.45 per share, in the same period last year. The impressive earnings surpassed analysts’ expectations, driven largely by an unexpected rise in other income.

The company’s revenue for the quarter amounted to PkR17.3 billion, showing a 10% year-on-year increase from PkR15.7 billion. This growth was supported by a 6% rise in company offtakes and exceeded forecasts, potentially due to increased sales of their product ‘hdPutty’.

Gross margins improved by 2.1 percentage points year-on-year to 40.5%, largely due to higher cement prices and elevated sales of Putty. Meanwhile, distribution and selling expenses declined by 28% to PkR973 million, down from PkR1.4 billion in the same period last year, likely due to a reduction in branding and promotional costs.

A notable factor in the earnings boost was a substantial increase in other income, which soared 85 times to PkR1.8 billion, compared to PkR21 million the previous year. This surge is believed to be from gains on short-term investments, though further details are awaited.

The finance cost saw a decrease of 46% to PkR457 million from PkR848 million last year, attributed to a decline in borrowing rates and a 2% reduction in total outstanding debt. The effective tax rate for the quarter was recorded at 33%, down from 50% in the same period last year, due to a 10% tax credit allowance related to a specific case.

For the full fiscal year 2025, Maple Leaf Cement’s earnings rose by 66% year-on-year to PkR11.5 billion, or PkR10.98 per share, up from PkR6.9 billion, or PkR6.58 per share, the previous year. The company is currently reviewing its stock performance amidst these developments.