2014 – 15 financial highlights
Bestway Cement recorded its highest ever turnover with revenue rising by 4.18% to Rs.38.7 billion from Rs.37.2 billion the previous year for Bestway and 11.5% to Rs.7.1 billion from Rs.6.4 billion for Pakcem. Profit before tax for the financial year reached Rs.12.6 billion with a 10% increase for Bestway Cement and Rs.1.64 billion with 11% increase for Pakcem. The sales volume improved by 1.20% to 4.424 million t for Bestway Cement and an 8% increase to 0.836 million t for Pakcem. Net turnover increased by 5.4% from Rs.28.9 billion to Rs.30.5 billion for Bestway, and by 9.4% to Rs.5.58 billion by June 2015 for Pakcem.
Pakcem’s figures are based on a 6-month comparison period ended 30 June 2015.
Outlook for 2015 – 16
The economic outlook is positive although geopolitical and macroeconomic risks remain. Global coal prices are expected to remain fairly stable. Interest rates and inflation are likely to remain low. Challenges will remain in terms of the growth in export sales volumes of cement and power deficiency.
Mr. Zameer Choudrey, Chief Executive of Bestway Group, said: “this was a transformative year for us, with multiple major initiatives that will shape Bestway for years to come. We closed the year by becoming the largest cement manufacturer in Pakistan. Construction trends are favourable in Pakistan and I am confident that we are particularly well positioned to succeed and accelerate growth through innovation.”
Domestic demand for the industry grew by 8% from 26.15 million t to 28.21 million t. Exports, however, fell by 12% from 8.1 million t to 7.2 million t due to sluggish demand and competitive prices. The year 2014-15 saw fierce competition for cement producers. Bestway Cement not only persevered in increasing its market share in the north zone from 17% to 21.35%, but also became the largest cement producer in the country and continued to be one of the largest exporters of cement to Afghanistan and India.
Earnings per share for Bestway Cement stood at Rs.14.96 from Rs.14.76, while Pakcem stood at Rs.0.41 against Rs.0.34 from the corresponding period. The Boards of Directors of both companies declared a full and final dividend of Rs.2.5 (25%) for Bestway Cement and Rs.0.25 (2.5%) for Pakcem.With a total cement capacity of over 8 million tpy, Bestway continues to be the leader and a pioneer in the cement industry focused on reducing environmental impact and contributing to the country’s power generation.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/asia-pacific-rim/15092015/results-for-bestway-cement-and-pakcem-announced-551/