Lahore: The Flying Cement Company Limited has released its 33rd Annual Report, highlighting a year marked by geopolitical and macroeconomic challenges that affected its financial performance. For the fiscal year ending June 30, 2026, the company navigated volatile global energy markets and geopolitical tensions, notably the Iran-US war, which led to high production costs.
The fiscal year 2026 was particularly challenging for Pakistan due to macroeconomic uncertainties. Despite these challenges, Flying Cement reported a notable increase in sales revenue. Gross sales reached Rs. 22,237 million, while net sales rose to Rs. 14,521 million, reflecting a significant increase from the previous year's figures. However, the company's profit margins faced pressure, with a decrease in gross profit ratio to 12.93% from 15.11% the previous year.
According to information available from the Pakistan Stock Exchange (PSX), Flying Cement's production and dispatches showed robust growth. Cement production increased to 972,377 metric tons from 732,421 metric tons in 2025. Similarly, cement dispatches grew to 971,576 metric tons from 741,458 metric tons, indicating an upward trend in demand.
Despite improved sales figures, the company's financial bottom line was impacted by rising costs. Operating profit rose by 26.58% to Rs. 1,518 million, but net profit after tax decreased to Rs. 486.42 million from Rs. 648.82 million in 2025. The net profit margin for 2026 stood at 3.35%, a notable decline from the previous year's 5.79%.
Earnings per share dropped to Rs. 0.70 from Rs. 0.93 in 2025, reflecting the impact of increased production costs. The board proposed no cash dividend for the year, reflecting a cautious approach in light of ongoing geopolitical uncertainties and financial pressures.
The company maintained its focus on strategic growth, emphasizing the importance of structural reforms and geopolitical stability for sustainable recovery in the industry. All related party transactions were conducted at arm's length and complied with PSX regulations and the Companies Act, 2017.