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    142026

    Uploaded by

    Umer Aftab
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    Copyright:

    © All Rights Reserved
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    of 11
    @uk: oS LCK/CS/2019-20/ January 29, 2020 The General Manager The Deputy Chief The London Stock Exchange Pakistan Stock Exchange Securities & Exchange _10 Paternoster Limited Commission of Pakistan Square, Karachi Islamabad London Dear Sir(s) FINANCIAL RESULTS FOR THE HALF YEAR ENDED DECEMBER 31, 2019 This is to inform you that the Board of Directors of our Company in their meeting held on Wednesday, January 29, 2020 at 4:30 p.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following: i) Cash Dividend Nil (ii) Bonus Issue Nil (ii) Right Issue Nil (iv) Interim Dividend Nil The financial results of the Company consisting of Statements of Financial Position, Statements of Profit and Loss and Other Comprehensive Income and Directors’ Report are annexed The Half Yearly report of the Company for the period ended December 31, 2019 will also be transmitted through PUCARS separately, within the specified time. Yours truly fo Director Finance / CFO Lucky Cement Limited @uik: — Unconsolidated Condensed Interim Statement of Financial Position ‘As at December 31, 2019, (Un-audited} (Audited December 31, June 30, 2019 2018 (PKR in 000) ASSETS NON-CURRENT ASSETS Fixed assets Property, plant and equipment 62,187,703 57,276,184 Intangible assets 13,245 18,152 62,170,948 57,204,336 Long-term investments 36,618,587 34,313,588 Long-term loans and advances 90,628 99,316 Long-term deposits 3,175 175. 98,883,338 8710415 CURRENT ASSETS Stores and spares 7,661,615 6,808,724 Stock-in-trade 2,365,661 4,253,020 Trade debts 3,079,131 2,058,719 Loans and advances 589,643 686,525 ‘Trade deposits and short term prepayments 93,985 74,223 ‘Accrued return 93,715 113,869 Other receivables 2,116,939 2,130,907 Tax refunds due from the Government 538,812 538,812 Short term investments 409,394 1,055,754 Cash and bank balances 42,852,797 15,657,246 29,791,692 33,378,739 TOTAL ASSETS 128,675,030 125,089,214 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES. Share Capital 3,233,750 3,233,750 Reserves. 90,918,523 91,084,667 194,182,273 94,318,417 NON-CURRENT LIABILITIES Long-term deposits 232,442 90,264 Deferred labilties 7,484,313, 7,102'483 7,416,755 7.192.747 CURRENT LIABILITIES Trade and other payables 20,348,244 19,195617 Short term borrowing 5,218,628, 2,900,000 Unclaimed dividend 87,574 53,953 Unpaid dividend 23,897 91.119 Taxation - net 4,457,659 4,337,361 27,106,002 _| 73,578,050 34,522,757 30,770,797 TOTAL EQUITY AND LIABILITIES 728.675.0930 125,089,214 Lucky Ce 6-8. Mohamad alsfobsig Society, A. Ari Hashim Tabb Street, Karachi-75350 YBG LAN 11 78s55-4 453802 Enfoalcky cementcom URL: weeelucy-cementcom UCKY EMENT age 3of 13 LUnconsolidated Condensed Interim Statoment of Profit oF Loss and Other Comprehensive income For the halt year ended Dacembor 31, 2049 (Unaudited) Halt Year Ended Quarter Ende Decambar'3,," December 31, December at, December 31 m8 Sore m mae (KR 000 ‘exr 200) Gross sa sonsses— a4gesaey—t7t68 679 se8r42r8 Les Sats tx and federal excite uty BaBe5 || —SarETAT] [—SoeaTET Rebates, mcardver and commeson wiser || So 230488, ee Not eates a a Cost ot see (7997442) (17591060) waea99H) (2550411) Gross pront aa TAS ae Ostrouten cost (1aseazo) (1.374800) gr9.03) 18.99 fdr expanses (so7aza) (358645) aaes0n) (265808) freance cost (araas) (28080) ner expenses (isa (o70602) ast) 28.148 ‘Omer come trosost tees: Yreaoo. Sea 2 Prof before taxation aa a a “cient [Beesea] [cass so0]/ Tessie] | — eas) “feted LL Sesises | |_" “oe. sus : 257 380 288) hoasoat) Tas) 626879) Prot ater taxation aT soos sears 307 88 ‘other comprehensive income: ‘er compranensive (oss) / come wach wl na be recassiie o rotor supeequet peas vale tough oter comprehensive income | za} | rose) 7389 4802] Detered tax teroon fae] |_“se0o car) 630 72) 208) S000 eH) Tetal comprehensive income forthe poiod mE Sa ees ery (KR Earnings per share baste and ited sso __irot,_303, __oa0 \ WAN: 111-786-555 F-4834302E:nfoglucky-cement com URL woeecky-cementcom eeyduanyemen oe yey erent Oo YBG Oust: _ Condensed interim Consolidated Statoment of Financial Position ‘As at December 31,2019, (Unaudited) uses) Secomber 31 Ste 30 018 2018 (KR in 000 Assets NON-CURRENT ASSETS ed assets Proper, plant and equipment 139478.798 Irtangibe assets 7.989.720, Pam of use assets TRE STE Long-term vestments se284200 Lona loan ard advances fst ase Loner deposits and prepoyments 1078 Teaza8- 156 (CURRENT ASSETS ‘Stores, spares and consumables 3306360 Ea Stoocinrade 799,408 299.229 rade debs 150,468 Loans and advances ‘967 998, Trade deposts and shorterm prepayments 41953161 2.002.112 Omer recevabes 61706,253 Baszee ‘Tarren ove trom tie Government Sseate sae? Taxation receivabie, 2208728 2687513 Aectued etm 109.736 | ‘\sooe8 ‘Shot ter investments 409,386 | 1.055.754 Cash and bank baances 19.075.095 | 18270913, 62.845.912 $4736.13" ToTALASSETS Besse | ——erosizar EQUITY AND LIABILITIES SHARE CAPITAL ANO RESERVES ‘hare capital 3,233,780 3.200780 Reserver 108,521,451 105,707.478 “Arbutale fo the oxners ofthe Holding Company 109.755.201 09.028 228 ‘Non-consrouing isrets 17,659,360 16.240228 ‘Tota eauty Tarava.sst 725 270.488 NON-CURRENT LIABILITIES Long-term ances wae Long-term deposits 20.266 Doteredtabites 11434398 Lease Lables Other ong tem taba astzae0 5.078.003 70.472.582 wear 508 ‘CURRENT LIABILITIES ‘Current porton of ona term frances *a7,502 500505 Trade and other payables Slcasr2 36 050.104 Prowtion fr taxation “aaaaae "900.742 focued tum 155.983 ‘19.500 ‘Short ierm Berowns and runing tance 1043653 2401282 Current orton of faites agains! assets subject ofnance lease 42082 named diigend s3982 paid ender sue reece BIE 01 750,831 (AL EQUITY AND LIABILITIES aC ee Oo YBG URL: whicky-cement coon OU: a Condensed Interim Consolidated Statement of Prot of Loss and Other Comprehensive Income Forth half your ended Decomber 31, 2019 (Un-audited) Halt Yoar Endea ‘uerterEncea December 3, December, December’, December 34 “ore 2018 018 me PKR in 0007 (PKR in 000) 7ossoe 67.9540; 45,128.40 96528607 Teast S06 | [ TS0T Eee] [aren aoa | [BORER Febstes,ncentwes and commission L_azerazss}|_2s2361] | s00.630| |_ 1 oess Weare Tata 710 —T4SeeGa4 | 7.663.378 wwe STINT SSE SET ERTS Cont of sles (42020,982) (29.256.427) 22.764 280 (ros prott as Sma eT Diereuton cost (2937930) caogezsy (1.454.128) Aameusvatve erpenses (531627) (.o1eo81) 075,797) France cost (7433 (ge0.s21) (417 120) One expenses (901.980) anasto) (660.207 ter neome ts2a716 4aoesoa 77007 Profit before taxation ams are era ‘uerent iz) [Tassos] [T105850} eterec 83.531 253386 ||_ 360.315 Getasors) — 149858 (627-809) —_(e99197) Prof after taxation semis TTR aera oT Onners ofthe Helaing Company 3212118 5705505 aae3e 2898705 Nomcontcing rest, Toe i757 assess 135.767 es ee sama ‘other comprehensive income forthe period ‘ther compronantive ls) income whieh maybe reclaeeed to statment of profit or toss in subsequent oeriods Foreign exchange diferences on anslatin f foreign operations (075425) 1200586 (114.005) 1011483 ‘tne comprhenave os} income which wil ot be reciasedtostatanent ot ‘rol Floss in subsequent periods Unmeaizea Yossigan on remeasurement of equty investment far a0) [wows [7388 5 value tough oer comrenensiveneome Deters tax ern * 640 1.0781 20 waz) 79.298) 6.088 am Total comprehensive income forthe period ie es a Cnners of te Hecing Company aeasor1 6906769832028 3.847238 Nonconeoing tress Toes i757 assa53 135,767 ies ee a (PKR) oo arngs per share - base and Sites 299 wa 6.00 a7 Lcky Cement Limited 6-4. Mohammad Al Hou Sciety A. At ashi Tb Stet Rash 75380, A] YBG WAN 111-786-585 F-34534302 F:infoslacky-cement.com RL: woe cky-cementcom CaMir basi Directors’ Report The Directors have the pleasure in presenting to you the financial results of your Company which include both, stand-alone (duly reviewed by the auditors) and consolidated unaudited financial statements for the half year ended December 31, 2019. Overview Cement industry in Pakistan grew by 6.5% to 24.75 million tons during the half year ended December 31, 2019 in comparison to 23.23 million tons during the same period last year. Local sales volume registered a growth of 3.5% to 20.37 million tons during the current half year in comparison to 19.67 million tons during the same period last year. Export sales volumes registered an increase of 22.9% to 4.38 million tons during the half year under review as compared to 3.56 million tons reported in the same period last year. in comparison to the Cement Industry, your Company's overall sales volumes declined by 8.4% to 3.68 million tons during the current half year ended December 31, 2019. The local sales volumes registered a decline of 13.3% and were 2.59 million tons in comparison to 2.99 million tons during the same period last year, however, the export sales volumes of the Company improved by 6.0% to 1.08 million tons as compared to 1.02 million tons during the same period last year. On a consolidated basis, your Company achieved a gross turnover of PKR 79.56 billion which is, 17.3% higher as compared to the same period last year’s turnover of PKR 67.85 billion. Moreover, consolidated Net Profit of the Company was PKR 3.92 billion of which PKR 0.71 billion is attributable to non-controlling interests which translates into an EPS of PKR 9.93 during the current half year ended December 31, 2019 as compared to PKR 17.92 during the same period last year Business Performance a. Production & Sales Volume Performance - Standalone The standalone production and sales statistics of your Company for the half year ended December 31, 2019, compared to the same period last year are as follows: Pores Growth/ oer) Clinker Production (21.2%) Cement Production (8.1%) Cement Sales 19.5%) Clinker Sales (1.2%) Cee revo ‘The production and sales volume data is graphically presented as under: ama aase 3501 Ti Wl. ‘= Clinker Production Cement Production Cement Sales Clinker Sales A comparison of the dispatches of the Industry and your Company's standalone business for the half year ended December 31, 2019 compared with the same period last year is presented below: ‘Cement industry* export Sales Bagzed aaa os) wear Loose 38 aa) (48.2%) Total Exports 3563 a6. 32.9% Grand Total 33238, sa 5% Lucky cement Local Sales Cement 700 7592 Tay Gann Total Local Sales oo 7392 Go) a3a36) Export Sales Clinker saa (sa) (99%) Total Exports mz 022 en 60% Grand Total G37) (eax) 35.2% (6.4%) ‘roeat Export Berm 20.7%. (23.9%) 13.9% (3.9%) SRT Tr cert 9 tee LUCK Quik: b. Financial Performance - Standalone Page 8 of 11, The standalone financial performance of your Company for the half year ended December 31, 2019, as compared to the same period last year is presented below: 2019-20 Gross Revenue 31,096, Net Revenue 21211 cp 3.224 op 732 EBITDA 2.471 per 2199 NP 2.937 eps 5.99/share Revenue During the half year of 2019-20 under review, your Company's overall gross sales revenue declined by 10.9% as compared to the same period last year. Where, although the export sales revenue showed an increase of 19.1% (PKR 6.43 billion vs PKR 5.40 billion) but the local sales revenue decline of 16.3% (PKR 24.67 billion vs PKR 29.49 billion) lead to the overall drop of 10.9% in the gross sales revenue. This was mainly due to lower sales volumes and cut-throat pricing on the back of lower demand and retentions due to higher transportation and logistics costs. Gross Profit In view of the lower sales volumes & retentions and higher input costs, mentioned above, Gross profit margins of the company for the half year under review were 15.2% as compared to 29.7% reported during the same period last year. i \ PAR in milion except £95 Half 34,885 (20.9%) 24,955 (as.0%) 7.a24 (56.6%) 5,490 (36.7%) 7.157 (65.5%) 6.526 (66.3%) 5,502 (64.89%) 17.01 /Share (64.2%) Cost of Sales Moreover, during the half year review, per ton cost of sales of your Company increased by 12.0% as compared to the same period last year. The increase was mainly attributable to exceptional increase in gas and other fuel prices, higher fixed costs absorption (due to lower volumes) and higher transportation costs under on input materials. Gross Profit ions 0220 NN 3732 2:20 EN 1.392 19 NN 2725 1 TT 236 249 4.000 Lucky Cement Limited A. Mohammad Ali Housing Society, A. Asie Hashim Tabba Street, Karsch75 WANN. 111-786-555 F34534302 Etnoacky-cement ‘a Net Profit Similarly, your Company achieved a profit, before tax of PKR 2,199.3 million during the half year under review as compared to PKR 6,525.8 million reported during the same period last year Accordingly, after tax profit of PKR 1,936.6 million was achieved during the half year Page 9 of 12, Net Profit 0220 ME 383 01.20 MN 956 1S NT 2356 2733 io TT 3.00% under review as compared to PKR 5,500.8 million reported during the same period last year. EPS Trend PKR Earnings per share The earnings per share of your Company gy for the half year ended December 31, 2019 was PKR 5.99 in comparison to PKR 17.01 679 reported during the same period last year. 296 303 @239 a3a9 as 120 a220 Projects - New and Ongoing Brownfield cement plant expansion in KPK Province of Pakistan ~ 2.8 million tons per annum. Construction and installation after slight design modifications with respect to the additional line of 2.8 million tons per annum has been successfully completed as per the given project completion timelines. The new line was made operational with the commencement of Clinker production on December 30, 2019. The total production capacity (including both North and South plants) of the Company has now increased from previous 9.35 million tons to 12.15 million tons per annum. Investments Investment in 1 x 660 MW, supercritical, coal based power project The construction activity for setting up 660 MW super critical, lignite coal-based power plant is in full swing with over 60% of project completion to-date. With the completion of major design / engineering works and the expected on-site arrival of all the critical equipment in the months of February and March, the commissioning team of SEPCO III is now fully mobilized at the Project site Aaiget to achieve commercial operations is 1 March 2021. LUCKY eter Page 10.0431 Id cement plant expansion in Samawah, Iraq - 1.2 mi n tons per annum Fabrication and erection work is in full swing and Project timelines are being met. Necessary manpower and contractors have also been mobilized at the Site. The contract for Cement Binding mill, Packing plant and additional Power generator is also finalized and Letter of Credit has been established Target to achieve commercial production is by the second quarter of financial year 2020-21. Corporate Social Responsibility With the primary focus on Education, Women empowerment, Health and Environment conservation, your Company remains committed towards progressive development of society and the communities in which it operates. Education / Scholarships Your company continues to support the deserving and less privileged segments of the society through provision of merit-based scholarships to various students of IBA, [oBM and other leading universities in Pakistan and abroad. Women Empowerment Your Company's focus on women empowerment through education remains an ongoing process with the collaboration of Zindagi Trust by supporting two leading Government girls’ schools in Karachi. These schools have been transformed into model girls’ educational institutions in Pakistan Health initiatives The quality healthcare provision has always been your company’s priority especially through the financial support of Aziz Tabba Foundation; a prominent philanthropic institution that is running Tabba Heart and Tabba Kidney institutes, which provide vital support in bridging the gap of specialized and modern medical care in the Country. Environment Conservation Your Company always takes serious responsibility towards the preservation of the environment and in an effort to highlight the importance of environment conservation; your Company continued with its pro-environment initiatives including tree-plantation drives in and around its manufacturing sites. Outlook Despite current economic challenges, there has been an overall growth in both Domestic and Export off-takes ‘The Outlook of the Cement industry will continue to be challenging due to availability of excess capacity in the North region, which will put adverse pressure on pricing. Whereas, prices for exports from South are also very competitive due to surplus supplies available in the Region. The input costs may also rise in the future, due to higher electricity and gas tariffs, which will increase the production, as well as logistics costs. fed A sds tbo sa Oo YBG Hey EMENT age 34 of11 Acknowledgement Directors of your Company take this opportunity to express sincere gratitude and appreciation for unrelenting commitment and contribution of its people and the trust and confidence placed in the Company by all the stakeholders On behalf of the Board \ S/S MUHAMMAD YUNUS TABBA MUHAMMAD ALI TABBA Chairman / Director Chief Executive / Direttor Karachi: January 29, 2020 ae - ep ann aE sg ences GP vse ANN: 111-786 535 F24534800 Esinfoglucky-cement.com URL: werwicky-

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