Karachi: Bestway Cement has presented its Directors' Report along with audited financial statements for the fiscal year ending June 30, 2024. The company announced a final cash dividend of Rs 8 per share, resulting in a total payout of 260% for the year, reflecting a robust performance despite prevalent economic hurdles.
According to information available from the Pakistan Stock Exchange (PSX), the economy of Pakistan faced numerous challenges during the fiscal year 2023-24, including political instability and high inflation, which led to monetary tightening and geopolitical tensions. However, despite these adversities, the GDP grew by 2.38%, showing a recovery from the previous year’s contraction of 0.21%. The support from an IMF standby arrangement and improvements in foreign exchange reserves provided some relief, enabling a moderate economic recovery.
The cement industry saw a decrease in domestic dispatches by 5% to 38.2 million tonnes, while exports grew by 54% to 7.1 million tonnes, thanks to favorable international prices and the depreciation of the Rupee. Bestway Cement's total dispatches rose by 6%, significantly above the industry average, attributed to two new production lines becoming operational in early 2023.
Financially, Bestway Cement recorded a gross turnover of Rs. 145.6 billion for the year, a 21% increase from the previous year’s Rs. 120.2 billion. This rise was mainly due to a 6% increase in sales volumes and higher selling prices necessitated by rising input costs. The company reported a gross profit of Rs. 32.2 billion, up from Rs. 27.3 billion the previous year, and a profit after tax of Rs. 13.8 billion, compared to Rs. 11.9 billion in the prior year.
The report also highlighted Bestway’s contributions to national development through taxes and duties amounting to over Rs. 43 billion. Additionally, the company emphasized its commitment to environmental sustainability, operating ISO 14001:2004 certified plants, and engaging in water conservation efforts and alternative energy initiatives to reduce its carbon footprint.
Despite the tough economic conditions, Bestway Cement continues to prioritize shareholder returns, operational excellence, and corporate social responsibility, maintaining its position as a leader in Pakistan's cement industry and a responsible corporate citizen.