Lafarge Pakistan Cement Limited announces financial results as of December 31, 2013

Islamabad, April 03, 2014 (PPI-OT): The Board of Directors of Lafarge Pakistan Cement Limited met recently and approved the accounts for the year ended December 31, 2013.

Full year key figures are as follows:


Net Sales grew 7% to Rs. 10,302 million from Rs. 9,624 million in December 2012 Local sales improving by 2.77%, from 1.17 million tons in 2012 to 1.20 million tons in 2013
Net profit after tax of the Company rose to Rs. 1,803 million from Rs. 1,488 million Exports fell by 8.5% from 473 thousand tons in 2012 to 433 thousand tons in 2013
Earnings per share (EPS) improved to Rs1.37 in 2013 against EPS of Rs1.13 in the previous year

Lafarge Pakistan has posted a positive bottom line in year 2013. Net sales grew 7% to Rs. 10,302 million from Rs. 9,624 million.

‘We are happy to share our Annual Results for 2013, with growth in Net Sales of 7%’ said Mr. Amr Reda, Country Chief Executive Officer, Lafarge Pakistan Cement Limited. ‘With our unprecedented commitment to Building Better Cities across Pakistan, we are determined to grow the Pakistan market in 2014 and beyond. Construction trends are favourable in Pakistan and I am confident that we are particularly well positioned to succeed and accelerate growth through innovation.

We are committed to addressing Pakistan market needs such as low cost, low-income housing and concrete roads, thus supporting the Government of Pakistan’s’ Infrastructure Development initiatives’ Mr. Reda continued.

The Company increased the use of alternate fuel from 28% in December 2012 to 32% in December 2013. Power shortage persisted in the country and in order to avoid complete shutdown, generator sets were rented which used expensive diesel oil impacting the cost of electricity adversely.

Whilst this proved to be an expensive alternative, it resulted in a net gain for the Company. The gross profit increased to Rs.3,225 million from Rs. 3,135 million while net profit after tax of the Company rose to Rs. 1,803 million from Rs. 1,488 million. During the year the Company also managed to reduce its debt by Rs. 1.9 billion through its operational cash flow.

The Company’s capacity utilization remained at 68% with local sales improving by 2.77%, from 1.17 million tons in 2012 to 1.20 million tons in 2013. Revenues of the Cement Industry on the whole improved due to better volumes and prices in the domestic market.

Exports however fell by 8.5% from 473 thousand tons in 2012 to 433 thousand tons in 2013. The Cement Industry of Pakistan saw decline by a nominal 0.45% to 8.29 million ton versus 8.33 million ton in 2012.

The local industry dispatches are anticipated to increase in the coming year because of the resolve of the newly elected government to start new mega projects as well as increasing trend of urbanization. However, power shortage will still remain a major challenge for the cement industry in Pakistan for 2014. The exports however, are expected to be influenced by the elections in both the neighbouring countries, Afghanistan and India.

Lafarge Pakistan is well positioned to grow the cement industry and contribute to Building Better Cities across the country. Our commitment to Building Better Cities and innovation in everything we do, takes us beyond frontiers to deliver outstanding value to our customers, a safe and stimulating work environment for our employees and continue contributing to the local community. Lafarge Pakistan has posted numerous Corporate Social Responsibility and Volunteering initiative in 2013 in the areas of Health and Safety, Environment, Local job creation, Community Development and Education.

About Lafarge Pakistan

Lafarge Pakistan is a subsidiary of Lafarge Group; a world leader of building materials. Lafarge Pakistan is listed on Karachi, Lahore and Islamabad Stock Exchanges. It is the first and only multinational cement manufacturer in Pakistan. In line with the Group strategy to develop capacities and accelerate growth in emerging markets, a state-of-the-art plant was developed at Kallar Kahar, District Chakwal, in the province of Punjab. The plant commenced its Commercial Operations in December 2006 with an annual cement production capacity of 2.6 m tons, thus pioneering to be the largest cement production line in Pakistan.

Lafarge Pakistan is committed to growing the Cement Industry of Pakistan and contributing to the economic growth of the country. Our product portfolio includes Ordinary Portland Cement (PAKCEM) and High quality Cement (Stallion). Our product innovation takes us beyond frontiers to deliver outstanding value to our customers, a safe and stimulating work environment for our employees and superior returns for our shareholder.

Lafarge’s Leadership in Health and Safety enables it to provide a safe and healthy working environment, ensuring the protection of its employees’ and stakeholders as its first priority. Additional information is available on the website at www.lafargepakistan.com.pk.

For more information, contact:
Imran Sultan
Senior Communication Associate
Lafarge Pakistan Cement Ltd.
18 – B, Kaghan Road
F-8 Markaz – Islamabad
Office +92 (51) 111 111 722
Cell + 92 (0)300 5016605
Fax: +92 (51) 281 7300

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