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Pioneer Cement posts an increase in sales and profit for 1H14

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World Cement,

Financial performance

Pioneer Cement Limited has announced its financial results for the half year ended 31 December 2013:

  • The company generated net sales revenue of Rs.3.67 billion against Rs.3.59 billion in 1H13, registering an increase of 2.2% y/y, despite an 8.8% fall in volumes.
  • Gross profit stood at Rs.1.16 billion, a 1.5% y/y improvement from Rs.1.1 billion in 1H13.
  • Operating profit rose to Rs.1.09 billion in 1H14 from Rs.974 million in 1H13, an 11.9% y/y increase.
  • Post tax profit totalled Rs.690.8 million, increasing 6.7% y/y from Rs.647.5 million.
  • Earnings per share improved by 6.7% y/y from Rs.2.85 in 1H13 to Rs.3.04 in 1H14.

Operational performance

During 1H14 Pioneer Cement produced 532 223 t of clinker compared to 507 388 t in 1H13, a 4.9% y/y increase. This translates into capacity utilisation of 53.4% compared to 50.9% achieved in 1H13. Cement production for the period totalled 551 965 t, 8.3% y/y lower than the 602 221 t produced in 1H13. The lower cement production was in line with reduced exports.

Cement sector performance

During 1H14, the Pakistani cement industry recorded a marginal increase of 1.13% y/y in volumetric sales, reaching 16.1 million t compared to 15.9 million t in 1H13. This represents a 2.2% y/y increase in domestic dispatches and a 1.9% y/y decline in export volumes. The cement sector is still striving to find the right equilibrium between the installed capacities and market demand, with the anticipation that the government will increase expenditure on infrastructures, dams and other construction projects.

Professional Excellence Awards

Pioneer Cement was named as the winner of the Cost Reduction and Efficiency Improvement (CREI) award at the Fourth Professional Excellence Awards, held during the Annual ICAP (Institute of Chartered Accountants of Pakistan) CFO Conference. The awards recognise the achievements of chartered accountants who have added value to their organisations/business, by making worthy and innovative contributions to business processes, finance, accounting and internal control or leading change management.

Adapted from press release by Rosalie Starling

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