Lucky Cement surpasses expectations with highest-ever earnings

The company reported its highest-ever quarterly standalone earnings, clocking in at a staggering PkR9.5 billion (EPS: PkR32.3), bringing its full-year standalone earnings to an all-time high of PkR28.1 billion (EPS: PkR95.9).

But that’s not all—Lucky Cement also managed to exceed market expectations, largely owing to a windfall in other income, which was primarily driven by higher-than-anticipated dividend income.

The company announced a final dividend of PkR15 per share, ensuring financial stability.

Key Highlights

• Revenue growth: For the quarter, revenue reached PkR27.9 billion, marking a 10% year-on-year increase from PkR25.5 billion in the same period last year (SPLY). This was fueled by a 10% rise in average cement prices and a whopping 2.4x annual increase in exports.
• Improved margins: The gross margins also saw a healthy bump, improving to 32.4% compared to 27.7% in SPLY. This uptick can be chalked up to the higher cement prices and a significant 16% annual reduction in weighted average coal prices.
• Other Income boost: Other income skyrocketed to PkR7.5 billion, well above the expected PkR2.3 billion. This surge was likely due to increased dividend income, though we’re still waiting for more details on the exact source.
• Consolidated Earnings: On a consolidated basis, the full-year earnings hit PkR65.6 billion (EPS: PkR223.7), up 34% year-on-year from PkR48.8 billion (EPS: PkR166.4) in FY23. The key drivers here were a doubling of core income, alongside strong performances from their LEPCL unit and foreign cement operations in Iraq and DR Congo.

Setting New Records and Raising the Stakes

Lucky Cement has not just broken records; it has set a new standard for what’s possible in the industry.

The 28% increase in gross profit, climbing to PkR9.05 billion from PkR7.07 billion in the same quarter last year, underscores the company’s ability to adapt and thrive even in challenging market conditions.

The full-year gross profit rose by an impressive 49%, reaching PkR38.8 billion compared to PkR26.1 billion in FY23.

However, the company did experience a 46% increase in operating expenses (Opex) for the quarter, which jumped to PkR2.7 billion from PkR1.8 billion in SPLY.

Despite this, the net profit after tax (NPAT) more than tripled year-on-year, reaching PkR9.5 billion for the quarter, up from PkR2.6 billion in SPLY.

The company continues to maintain a ‘Buy’ stance with a June 2025 target price of PkR1,172 per share.