Lahore: Maple Leaf Cement Factory (MLCF) released its financial results for the third quarter of fiscal year 2026, revealing a decrease in earnings that fell short of industry predictions. The company reported consolidated earnings of Rs1.7 billion, equivalent to an earnings per share (EPS) of Rs1.69, marking a decline of 37% year-on-year and 43% quarter-on-quarter. The nine-month figures for FY26 show earnings at Rs7.6 billion, with an EPS of Rs7.27, reflecting a slight decrease of 3% year-on-year.
According to JS Global, the earnings decline was influenced by higher-than-estimated finance costs and administrative expenses. The results also incorporate the effects of the Pioneer Cement acquisition, finalized in mid-February 2026. Despite the earnings dip, MLCF's net revenue for 3QFY26 rose to Rs21.5 billion, a 30% increase year-on-year and a 14% rise quarter-on-quarter, bringing nine-month sales to Rs56.9 billion, an 11% increase year-on-year due to the consolidation impact. However, domestic dispatches remained unchanged year-on-year and fell by 15.4% quarter-on-quarter, totaling 0.94 million tons in the third quarter.
Gross margins for 3QFY26 fell to 33.1%, down from 34.7% in the previous quarter and 35.5% in the same quarter last year. This decline is attributed to lower retention prices and rising fuel costs driven by escalating oil prices in March 2026. Administrative expenses surged 2.4 times year-on-year and 60% quarter-on-quarter to Rs1.3 billion, primarily due to a one-time transaction-related cost estimated between Rs300-400 million. Finance costs rose 3.56 times year-on-year and 3.23 times quarter-on-quarter, following a significant increase in debt levels, as the company took a Rs76 billion loan for the Pioneer Cement acquisition. As of March 2026, MLCF's debt stood at Rs83.5 billion, up from Rs7.9 billion in December 2025. The effective tax rate for the quarter was 38.0%, compared to 36.1% in the previous quarter and 27.1% in the same quarter last year, resulting in a cumulative effective tax rate of 35.5% for the nine-month period of FY26.
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