Maple Leaf Cement (MLCF) Posts Strong Profits, But No Dividend Surprise
Maple Leaf Cement (MLCF) has wrapped up its financial year (FY25) with a big jump in profits, but held back on a final dividend announcement, surprising some investors.
Here’s a breakdown of what’s going on:
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Profits tripled this year!
MLCF made a profit of Rs17 billion this year. That’s over 3 times higher than last year’s Rs5.3 billion. On a per-share basis, this means earnings of Rs16.3, up from Rs5.0.
And the last quarter alone (April–June 2025) was impressive, profit rose to Rs4.9 billion, compared to just Rs975 million in the same quarter the previous year.
What helped MLCF’s profits grow?
- Higher Cement Prices
The company earned more money per ton of cement, which boosted revenue to Rs17.6 billion in the last quarter, 12% higher than last year. - Better Cost Control
Even though fuel and material costs remain a challenge, gross margins improved to 38%, meaning MLCF kept more money from every sale. - More Cement Sold
Local sales rose 7% YoY in the quarter, and 2.1% for the full year, helping push revenue up. - Lower Fuel and Freight Costs
Distribution expenses fell 29% YoY in the quarter, helped by cheaper diesel prices. - Big Gains from Investments
MLCF booked a profit of Rs 1.6 billion in the quarter by converting its investment in Agritech Ltd into ordinary shares. - Lower Borrowing Costs
Thanks to loan repayments and a falling interest rate, finance costs turned into a net gain of Rs523 million, a big improvement from a Rs1.1 billion cost last year. - Lower Taxes
Because of profits from a tax-exempt subsidiary (Maple Leaf Power), the company paid less tax, bringing the effective tax rate down to 21%, from 41% last year.
But where’s the dividend?
Despite these strong results, MLCF didn’t announce a final dividend. Investors hoping for a payout may be disappointed, although the company may be saving cash for future projects or expansions.
What’s next for MLCF?
Analysts expect profits to continue rising due to:
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- More coal and alternative fuels in the energy mix
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- Recovery in construction activity across Pakistan
- Growing demand for cement as interest rates come down
With a target price of Rs140 per share, some analysts still see upside potential for MLCF stock.
Quick snapshot – 4QFY25
| Metric | Value |
|---|---|
| Revenue | Rs17.6 bn (+12% YoY) |
| Gross Profit | Rs6.7 bn (GM: 38%) |
| Other Income | Rs1.6 bn |
| Net Profit | Rs4.9 bn |
| EPS | Rs4.7 |
| Dividend | None |
Maple Leaf Cement just had a great year, profits are up, costs are down, and the future looks promising. But no final dividend this time might leave some investors waiting a bit longer for their reward.
Source: Foundation Securities
⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
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