Lucky Cement records consolidated earnings of PKR 11.33 billion for the fiscal year ended June 30, 2019

Karachi, July 29th, 2019: On a consolidated basis, Lucky Cement Limited reported net profit after tax of PKR 11.33 billion after taking out PKR 1.02 billion attributable to non-controlling interests for the fiscal year ended June 30, 2019, which translates into earnings per share (EPS) of PKR 35.03 / share as compared to PKR 45.83 / share reported last year. The Board of Directors of the Company proposed a final cash dividend of PKR 6.50 per share subject to approval of shareholders in the upcoming Annual General Meeting scheduled to be held on September 27, 2019. Further, on a consolidated basis, the Company achieved gross turnover of PKR 136.59 billion which is 9.6% higher as compared to last year’s turnover of PKR 124.68 billion. On a standlaone basis Company’s overall sales volumes declined by 1.8% to reach 7.67 million tons during the current financial year. The local cement sales volume registered a decline of 11.7% to come to 5.85 million tons in comparison to 6.63 million tons last year and the export sales volumes of the Company improved by 60.9% to reach 1.82 million tons as compared to 1.13 million tons during last year. Further, with regards to Company’s standalone financial performance, the gross sales revenue increased by 0.3% to PKR 67.55 billion compared to PKR 67.38 billion reported during last year. The increase in revenue was mainly due to higher export volumes for clinker. Furthermore, Lucky Cement recorded net profit after tax of PKR 10.49 billion, which is 14.0% lower as compared to last year. Similarly, the standalone EPS of the Company is PKR 32.44 / share as compared to last year’s reported EPS of PKR 37.72 / share. Lucky Cement shared progress on its brownfield expansion for cement production of 2.6 million tons per annum at its Pezu Plant and the offshore greenfield investment project for producing 1.2 million tons of clinker at Samawah, Iraq. The company also shared the commencement of CKD operations of Kia Lucky Motors with the booking of “SPORTAGE” from June 30, 2019 followed by “PICANTO” in August 2019. In addition, the Company also reported progress on its investment project of 1 X 660 MW supercritical coal-based power project at Port Qasim. Lucky Cement remains committed towards improvement in the society and the communities in which it operates. In this regard, the Company extended numerous scholarships to deserving students for various leading universities in Pakistan and abroad. Keeping in view the importance and impact of women empowerment in Pakistan, the Company in collaboration with Zindagi Trust continued its support for two leading Government girls’ schools in Karachi. Providing quality healthcare has always been company’s priority and in this regard the company continued its support to Aziz Tabba Foundation and also donated to Shaukat Khanum Memorial Cancer Hospital, Pakistan Welfare Association of the Blind and World Memon Organization. Lucky Cement always takes serious responsibility towards the environment and in an effort to further highlight the importance of environment conservation, the company continued with its tree plantation drive in and around its manufacturing sites. Under the ambit of community development, Lucky Cement recently installed five solar energy based tube wells at various targeted locations near its Cement plant in the north, where earlier, only limited facilities for drinking water were available. With the current economic challenges and the post IMF (fund facility arrangements’ signing) macro-economic situation, Lucky Cement believes that in short to medium-term, the Outlook of the Cement industry will continue to remain challenging for the domestic sales. Export sales are anticipated to remain stable, however, prices will come under pressure due to regional competition.In the long-term, Lucky Cement believes that Cement Industry’s outlook is promising on account of Government’s key initiatives to build both small and mega-capacity / multipurpose water reservoirs / dams and construction of low-cost afordable houses for public at large.