@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-cementcomUCKY
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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
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WAN: 111-786-555 F-4834302E:nfoglucky-cement com
URL woeecky-cementcom
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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"
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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
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URL: whicky-cement coonOU: 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-cementcomCaMir 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 teeLUCK
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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
‘aNet 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
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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.
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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
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ANN: 111-786 535 F24534800 Esinfoglucky-cement.com
URL: werwicky-