Pioneer Cement Reports Rs1.3bn Profit in 4QFY24

Islamabad: Pioneer Cement Limited (PIOC) announced its 4QFY24 results, with the company posting net earnings of Rs1.3 billion (EPS of Rs5.9) compared to a loss of Rs94 million (LPS of Rs0.4) during the same period last year.

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This turnaround in earnings is attributed to higher gross margins and the absence of retrospective taxation, which impacted last year’s results. The outcome is in line with our estimates. Along with the results, the company announced a final cash dividend of Rs10 per share, bringing the full-year dividend to Rs15 per share.

During 4QFY24, PIOC’s topline stood at Rs8.1 billion, reflecting a 3% YoY decline, mainly due to a sharp 13% YoY drop in dispatches. The company’s gross margin improved to 35%, compared to 27% during the same period last year, an 8 percentage point increase driven primarily by a 12% YoY rise in retention prices.

Operating costs increased significantly to Rs247 million, largely due to the implementation of the axle load regime and higher inflationary pressures during the period. The effective tax rate for FY24 was 38%, down from 54% during the same period last year.

Cumulatively, PIOC posted an EPS of Rs22.8 for FY24, compared to Rs11.5 during the same period last year, a 2x YoY increase. This rise in earnings is mainly due to higher gross margins, lower finance costs (down 12% YoY), and lower effective taxation, as last year’s earnings were significantly affected by retrospective taxation.