PIOC Earnings Down 19% in 3QFY25
Staff Report
Karachi: Pioneer Cement Limited (PIOC) has posted net earnings of Rs974mn (EPS Rs4.3) against Rs1.2bn (EPS Rs5.3) during the same period last year, down by 19%YoY.
The company announced 3QFY25 result on Wednesday.
The result came in-line with our estimate. During 3QFY25, PIOC’s topline clocked in at Rs7.9bn (down 8%YoY) as cement dispatches fell by 7%YoY.
PIOC’s gross margin clocked in at 26% as compared to 32% during the same period last year. We believe that sharp decline is mainly attributed to lower capacity utilization and higher royalty expense during the quarter.
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Interestingly, despite lower inflation and dispatches, operating expenses increased by 40%YoY.
Moreover, finance cost reduced by 58% to Rs286mn mainly due to lower financing rates and borrowing.
On sequential basis, earnings declined sharply by 44%QoQ mainly due to lower volumetric sales (down 4%QoQ), reduction in retention price (down 6%QoQ) and incorporation of royalty expense as we believe that the company did not incorporated royalty expense in last quarter.
Cumulatively during 9MFY25, the company’s net earnings declined by 2%YoY mainly due to lower volumetric sales (down 16%YoY) and higher operating expenses (up 49%YoY)