Bestway Cement Limited recorded a 7 percent consolidated net profit increase for the financial year ending June 30, 2026, reaching PKR 25.57 billion compared to PKR 23.86 billion reported in the previous fiscal period. Alongside the annual financial results released on the Pakistan Stock Exchange, the board of directors announced a final cash dividend of PKR 10 per share. Basic and diluted earnings per share expanded to PKR 42.88 from PKR 40.02 recorded in FY25, reflecting steady bottom-line performance despite significant pressures on operational margins.
Net turnover remained relatively unchanged year-on-year, rising by 0.5 percent to PKR 108.28 billion from PKR 107.76 billion. Production and input costs grew at a faster pace, with cost of sales increasing by nearly 8 percent to PKR 75.82 billion. This cost growth compressed core operating margins, driving gross profit down by 13 percent to PKR 32.46 billion from PKR 37.28 billion in the prior year. Gross turnover stood at PKR 172.34 billion, while sales tax, duties, rebates, and discounts absorbed PKR 64.06 billion.
Operational expenditures showed contrasting trends across departments. The manufacturer reduced selling and distribution costs by 24 percent to PKR 1.22 billion and lowered other operating expenses by 11 percent to PKR 1.58 billion. Conversely, administrative expenses surged by 58 percent to PKR 3.27 billion. Lower gross margins combined with higher administrative overhead resulted in a 17 percent decline in operating profit, which settled at PKR 26.39 billion compared to PKR 31.84 billion recorded in FY25.
The financial performance was sustained below the operating line by non-operating income sources and debt servicing relief. The primary driver of earnings growth was a 35 percent increase in profit shares from equity-accounted investees, contributing PKR 14.55 billion compared to PKR 10.75 billion in the preceding year. Additionally, finance costs dropped by 30 percent to PKR 5.36 billion from PKR 7.63 billion, providing significant relief that compensated for a 63 percent decline in net finance and other income.
Pre-tax earnings remained stable, slipping by 1 percent to PKR 36.13 billion against PKR 36.45 billion in FY25. A 16 percent reduction in corporate income tax obligations, which fell to PKR 10.56 billion from PKR 12.59 billion, ultimately cleared the way for the 7 percent net profit expansion. The results highlight how investment income and disciplined debt management continue to safeguard profitability for leading industrial producers during periods of muted top-line demand and rising production costs.
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