Karachi: Lucky Cement has presented its directors' report for the fiscal year ended June 30, 2024, showcasing a robust performance despite economic hurdles. The report, which will be discussed in detail at the company’s 31st Annual General Meeting on September 26, 2024, highlights a 6.7% increase in consolidated net turnover and a significant rise in net profit.
According to information available from the Pakistan Stock Exchange (PSX), Lucky Cement faced a challenging economic environment characterized by high interest rates and inflation, which slowed down large-scale manufacturing and reduced import levels. Despite these obstacles, the company achieved a consolidated net turnover of PKR 411.0 billion, up from PKR 385.1 billion the previous year.
The audited financial statements reveal that Lucky Cement’s consolidated net profit surged to PKR 72.3 billion, up from PKR 59.5 billion in the previous fiscal year. This profit growth was largely driven by increased sales volumes and enhanced operational efficiencies across both local and international cement operations. The earnings per share also rose significantly to PKR 220.51, marking a 44.2% increase from the previous year.
On an unconsolidated basis, the company reported even more striking growth, with net profit doubling to PKR 28.1 billion from PKR 13.7 billion, and earnings per share increasing by 119.5%. This performance underscores the effectiveness of Lucky Cement’s strategies in cost optimization and innovation, aimed at overcoming the economic challenges.
Looking forward, Lucky Cement is cautiously optimistic about the financial year 2025. The company acknowledges ongoing economic challenges such as a low tax-to-GDP ratio and the need for structural reforms but is encouraged by the federal government’s initiatives in privatizing state-owned enterprises and tax reforms. Moreover, a new 36-month Extended Fund Facility with the IMF is expected to stabilize the economy further and promote growth.
The directors expressed their gratitude to all stakeholders for their support, which has been crucial in navigating the fiscal year successfully. They remain committed to leveraging their operational strengths and maintaining robust relationships with stakeholders to ensure continued growth and contribution to Pakistan’s economy.