July 23, 2026 (MLN): Bestway Cement Limited (PSX: BWCL) reported a solid 7% increase in its consolidated net profit for the year ended June 30, 2026, recording Rs25.57bn compared to Rs23.86bn in the preceding year.
Alongside the result, the company announced a cash dividend of Rs10 per share.
Reflecting this bottom-line growth, the company's basic and diluted earnings per share (EPS) grew to Rs42.88 from Rs40.02 in FY25.
The profit expansion was achieved despite stagnant top-line growth and compressing core margins. BWCL’s net turnover remained virtually flat, inching up by just 0.5% year-on-year to Rs108.28bn from Rs107.76bn.
Meanwhile, the cost of sales grew at a much faster pace of 8%, reaching Rs75.82bn. Because production costs outpaced revenue generation, the company’s gross profit contracted by 13%, settling at Rs32.46bn compared to Rs37.28bn in the prior year.
On the operational front, overheads were mixed.
The company successfully reduced its selling and distribution expenses by 24% to Rs1.22bn and other operating expenses by 11% to Rs1.58bn. However, administrative expenses surged by a significant 58% to Rs3.27bn. Dragged down by the gross margin compression and higher administrative costs, the operating profit declined by 17% to Rs26.39bn.
Below the operating line, Bestway Cement’s profitability was rescued by its investments and reduced debt servicing.
The absolute catalyst for the company was a robust 35% surge in the "share of profit of equity-accounted investees," which brought in a massive Rs14.55bn compared to Rs10.75bn last year.
Additionally, the company found substantial relief as finance costs dropped by 30%, falling to Rs5.36bn. These positive factors easily absorbed a 63% drop in net finance and other income.
Propelled by the surging associate profits and lower financial charges, the profit before tax remained stable, dipping only 1% to Rs36.13bn.
The company then benefited from a 16% lower income tax expense of Rs10.56bn (down from Rs12.59bn). This lighter tax burden allowed Bestway Cement to securely close the fiscal year with a 7% expansion in final net profit, standing at Rs25.57bn.
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED JUNE 31, 2026 (Rs.000) |
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|
Description |
2026 |
2025 |
change % |
|
Gross turnover |
172,339,288 |
168,486,554 |
2.3% |
|
Less: rebates and discounts |
(7,078,031) |
(6,006,662) |
17.8% |
|
Less: sales tax and excise duty |
(56,979,085) |
(54,721,339) |
4.1% |
|
Net turnover |
108,282,172 |
107,758,553 |
0.5% |
|
Cost of sales |
(75,821,288) |
(70,480,291) |
7.6% |
|
Gross profit |
32,460,884 |
37,278,262 |
-12.9% |
|
Selling and distribution expenses |
(1,220,670) |
(1,602,427) |
-23.8% |
|
Administrative expenses |
(3,272,713) |
(2,072,545) |
57.9% |
|
Other operating expenses |
(1,575,227) |
(1,763,748) |
-10.7% |
|
Operating profit |
26,392,274 |
31,839,542 |
-17.1% |
|
Finance and other income - net |
551,039 |
1,490,056 |
-63.0% |
|
Finance cost |
(5,360,349) |
(7,625,366) |
-29.7% |
|
Share of profit of equity-accounted investees - net of tax |
14,548,419 |
10,745,913 |
35.4% |
|
Profit before tax |
36,131,383 |
36,450,145 |
-0.9% |
|
Income tax expense |
(10,562,906) |
(12,585,777) |
-16.1% |
|
Profit for the year |
25,568,477 |
23,864,368 |
7.1% |
|
Earnings per share - basic and diluted (Rupees) |
42.88 |
40.02 |
7.1% |