Pioneer Cement Limited (PIOC) announced its 1HFY17 financial results today, wherein the company recorded bottom line of PKR1.50bn (EPS: PKR6.61), up by 52% YoY as compared to PKR988mn (EPS: PKR4.35) recorded in SPLY. The results broadly came inline with our expectation, it was announced.In addition to the financial results, the company also declared an interim cash dividend of PKR2.15/share.
During 1HFY17, topline of the company grew by 19% YoY to PKR5.19bn, mainly on the back of 41% YoY growth in sales volume due to 47% YoY increase in local sales (including clinker sale to FCCL), while exports during the same period declined by 86%YoY. Gross margin expanded by 100bps to 41% against 40% posted in the SPLY.
On a sequential basis, net sales increased by 7% to PKR2.68bn against PKR2.50bn posted in previous quarter owing to 5% QoQ growth in sales volume, while gross margin witnessed a decline of 400bps to 39% due to sharp sequential recovery in coal prices.
Hence, net earnings of the company grew by 14% QoQ to PKR799mn (EPS: PKR 3.52) in 2QFY17 versus PKR702mn (EPS: PKR 3.09) recorded in previous quarter.
