A result review of Maple Leaf Cement Factory for 4QFY21

Maple Leaf Cement Factory Limited reported its 4QFY21 annual result today, with PAT of PKR 733Mn (EPS: PKR 0.67), compared to LAT of PKR 1.1Bn (LPS: PKR 1.0) and PKR 4.4Bn (EPS: PKR 4.0) in 4QFY20/3QFY21, respectively. FY21 bottom-line rose to PKR 6.3Bn (EPS: PKR 5.7), compared to a loss of PKR 4.8Bn in SPLY. The improvement in annual performance was based on higher cement retention prices (↑20% YoY), and the results were largely in line with our estimations.

Key highlights of the result are summarized below:

MLCF reported net sales of PKR 9.5Bn (↑58%/1% YoY/QoQ) in 4QFY21 due to higher retail prices in the north region (↑19/2% YoY/QoQ). Similarly, the total FY21 sales increased to PKR 35.6Bn (↑22% YoY) on the back higher retail prices (↑8% YoY).

The gross margins dipped to 21.8% in 4QFY21, a decline of 1.7ppt QoQ due to lower dispatches (↓7% YoY) and higher coal prices. On annual basis, FY21 gross margins soared to 21.1%, compared to negative 2.5% in SPLY, courtesy of upbeat retention prices (↑20% YoY).

The distribution cost increased by 113%/26% YoY/QoQ to PKR 399Mn to support year end sales in 4QFY21. On the other hand, the administration expenses clocked-in at PKR 281Mn in 4QFY21, an increase of ↑28%/8% YoY/QoQ. The distribution costs and administration expenses for FY21 shot up by 37%/24% YoY to PKR 1.1Bn and PKR 0.8Bn, respectively.

Finance cost clocked-in at PKR 306Mn (↓47%/12% YoY/QoQ) due to lower debt levels and interest rate in 4QFY21. On the other hand, the FY21 finance cost declined to PKR 1.5Bn, down 50% YoY.

Other expenses showcased a large increase of 484%/33% YoY/QoQ at PKR 134Mn. The annual other expenses increased to PKR 365Mn (↑306% YoY).

Courtesy- BMA Capital Management Ltd.

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