Become a Member

Track your favourite stocks
Create & monitor portfolios
Daily portfolio value

Company	Chg	Chg %
Quickpicks
£	%
Add shares to your quickpicks to display them here!

Annual Financial Report

31st Jul 2018 11:55

RNS Number : 3265W

Lucky Cement Limited

31 July 2018

LCK/CS/FR2018/2018-19/ July 31, 2018

The General Manager

Pakistan Stock Exchange

Limited

Karachi

The Deputy Chief

Securities & Exchange

Commission of Pakistan

Islamabad

The London Stock Exchange

10 Paternoster

Square,

London

Dear Sir(s)

Financial Results for the year ended June 30, 2018

We have to inform you that the Board of Directors of the Company in their Meeting held on Tuesday, July 31, 2018 at 11:30 a.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following:

(I) Final Cash Dividend 80%

(ii) Bonus Shares Nil

(iii) Right Shares Nil

(iv) Any other Entitlement / Corporate Action Nil

(v) Any other Price-Sensitive Information Nil

The financial results of the Company consisting of balance sheet, profit and loss account and directors' report (condensed) are attached.

The 25th Annual General Meeting (AGM) of the Company is scheduled to be held on Friday, September 28, 2018 at 10:30 a.m., at the registered office of the Company situated at factory premises Pezu, District Lakki Marwat, Khyber Pukhtunkhwa.

The Share Transfer Books of the Company shall remain closed from Friday, September 14, 2018 to Friday, September 28, 2018 (both days inclusive). Transfers received at our Share Registrar/Transfer Agent M/s. Central Depository Company of Pakistan Limited, CDC House, 99-B, Block 'B', S.M.C.H.S. Main Shahrah-e-Faisal, Karachi-74400 at the close of business on Thursday, September 13, 2018 shall be treated in time for the purpose of above entitlement to the transferees.

We will be transmitting the Annual Report in electronic form through Pakistan Unified Corporate Action Reporting System (PUCARS) 21 days before the date of AGM.

Yours truly,

For: LUCKY CEMENT LIMITED

IRFAN CHAWALA

Director Finance / CFO

Unconsolidated Statement of Financial Position
as at June 30, 2018

		2018	2017
		(PKR in '000')
ASSETS
NON-CURRENT ASSETS
	Fixed assets
	Property, plant and equipment	40,913,168	37,488,137
	Intangible assets	55,023	79,657
		40,968,191	37,567,794

	Long-term investments	24,981,078	13,313,520
	Long-term loans and advances	90,996	84,951
	Long-term deposits	3,175	3,175
		66,043,440	50,969,440
CURRENT ASSETS
	Stores and spares	7,783,111	5,894,079
	Stock-in-trade	2,796,658	2,509,273
	Trade debts	2,424,470	1,582,689
	Loans and advances	420,671	619,161
	Trade deposits and short-term prepayments	67,577	39,774
	Accrued return	142,881	165,289
	Other receivables	1,311,180	1,235,019
	Tax refunds due from the Government	538,812	538,812
	Short term investment	34,956	45,452
	Cash and bank balances	27,435,361	33,738,377
		42,955,677	46,367,925

TOTAL ASSETS		108,999,117	97,337,365

EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES

	Share capital	3,233,750	3,233,750
	Reserves	83,133,072	76,551,231
		86,366,822	79,784,981
NON-CURRENT LIABILITIES
	Long-term deposits	94,394	84,630
	Deferred liabilities	7,300,639	7,124,127
		7,395,033	7,208,757
CURRENT LIABILITIES
	Trade and other payables	13,121,005	9,159,441
	Unclaimed dividend	47,945	31,415
	Unpaid dividend	82,960	79,026
	Taxation - net	1,985,352	1,073,745
		15,237,262	10,343,627

		22,632,295	17,552,384

TOTAL EQUITY AND LIABILITIES		108,999,117	97,337,365

Unconsolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended June 30, 2018
		2018	2017
		(PKR in '000')
Gross sales		67,376,579	61,601,934
Less:	Sales tax and federal excise duty	18,875,112	15,227,058
	Rebates and commission	959,743	687,833
		19,834,855	15,914,891
Net sales		47,541,724	45,687,043

Cost of sales		(30,589,363)	(24,388,760)

Gross profit		16,952,361	21,298,283

Distribution cost		(1,992,454)	(1,703,785)
Administrative expenses		(1,089,446)	(1,021,694)
Other expenses		(1,346,369)	(1,788,023)
Other income		2,594,563	1,993,472
Profit before taxation		15,118,655	18,778,253
Taxation
	- current	(3,037,587)	(5,032,196)
	- deferred	116,022	(53,808)
		(2,921,565)	(5,086,004)

Profit after taxation		12,197,090	13,692,249
Other comprehensive income:
Other comprehensive (loss) / income which will not be reclassified to
statement of profit or loss in subsequent periods
	(Loss) / gain on remeasurements of post retirement benefit obligation	(149,249)	9,488
	Deferred tax thereon	40,297	(2,354)
		(108,952)	7,134
Other comprehensive loss which may be reclassified to
statement of profit or loss in subsequent periods
	Unrealized loss on remeasurement of available for sale investment	(10,496)	(4,106)
	Deferred tax thereon	1,574	616
		(8,922)	(3,490)
		(117,874)	3,644

Total comprehensive income for the year		12,079,216	13,695,893

		(PKR)
Earnings per share - basic and diluted		37.72	42.34

Consolidated Statement of Financial Position
as at June 30, 2018

		2018	2017
		(PKR in '000)
ASSETS
NON-CURRENT ASSETS
	Fixed assets
	Property, plant and equipment	73,865,002	59,601,233
	Intangible assets	7,943,988	7,388,387
		81,808,990	66,989,620

	Long-term investments	13,642,987	11,098,870
	Long-term loans and advances	534,786	467,373
	Long-term deposits and prepayments	53,325	44,972
		96,040,088	78,600,835
CURRENT ASSETS
	Stores, spares and consumables	8,854,536	7,041,171
	Stock-in-trade	12,088,621	8,423,173
	Trade debts	5,142,591	4,172,567
	Loans and advances	1,117,485	1,061,146
	Trade deposits and short-term prepayments	1,108,185	675,814
	Other receivables	3,431,926	2,881,844
	Tax refunds due from the Government	538,812	538,812
	Taxation receivable	2,221,851	1,093,972
	Accrued return	161,742	181,355
	Short term investments	34,956	45,452
	Cash and bank balances	34,382,272	36,273,319
		69,082,977	62,388,625

TOTAL ASSETS		165,123,065	140,989,460

EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES

	Share capital	3,233,750	3,233,750
	Reserves	93,913,157	83,736,475

	Attributable to the owners of the Holding Company	97,146,907	86,970,225
	Non-controlling interest	12,428,264	9,235,325
	Total equity	109,575,171	96,205,550

NON-CURRENT LIABILITIES
	Long-term finance	8,789,887	8,825,140
	Long-term deposits	94,394	84,630
	Liabilities against assets subject to finance lease	-	798
	Deferred liabilities	10,640,736	9,864,932
	Other long term liabilities	3,431,948	2,752,510
		22,956,965	21,528,010
CURRENT LIABILITIES
	Trade and other payables	20,242,935	19,034,911
	Unclaimed dividend	47,945	111,983
	Unpaid dividend	82,960	79,026
	Provision for taxation	1,992,278	1,073,745
	Accrued return	272,146	177,654
	Short-term borrowings and running finance	7,332,327	2,128,905
	Current portion of liabilities against assets subject to finance lease	822	2,009
	Current portion of long-term finance	2,619,516	647,667
		32,590,929	23,255,900
		55,547,894	44,783,910

TOTAL EQUITY AND LIABILITIES		165,123,065	140,989,460

Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended June 30, 2018

		2018	2017
		(PKR in '000)


Revenue		124,681,831	109,800,227

Less:	Sales tax and excise duty	21,958,757	17,959,806
	Rebates and commission	5,181,190	4,457,896
		27,139,947	22,417,702

		97,541,884	87,382,525

Cost of sales		(71,943,557)	(58,445,580)

Gross profit		25,598,327	28,936,945

Distribution cost		(4,736,174)	(4,138,496)
Administrative expenses		(2,586,556)	(2,237,067)
Finance cost		(829,919)	(682,173)
Other expenses		(2,204,275)	(1,916,716)
Other income		2,766,520	2,085,609

		18,007,923	22,048,102

Share of profit in equity-accounted investments		1,865,477	1,582,119

Profit before taxation		19,873,400	23,630,221
Taxation
	- current	(3,160,980)	(6,475,246)
	- deferred	(538,867)	235,659
		(3,699,847)	(6,239,587)

Profit after taxation		16,173,553	17,390,634

Attributable to:
	Owners of the Holding Company	14,819,911	16,227,033
	Non-controlling interest	1,353,642	1,163,601
		16,173,553	17,390,634
Other comprehensive income:
Other comprehensive loss which will not be reclassified to
statement of profit or loss in subsequent periods:

Loss on remeasurements of post retirement benefit obligations		(467,082)	(64,663)
Deferred tax thereon		114,961	15,873
		(352,121)	(48,790)
Other comprehensive loss which may be reclassified to
statement of profit or loss in subsequent periods:
Foreign exchange differences on translation of foreign operations		1,106,162	1,385
Unrealised loss on remeasurement of available-for-sale investment		(10,496)	(4,106)
Deferred tax thereon		1,574	616
		(8,922)	(3,490)

		745,119	(50,895)

Total comprehensive income for the year		16,918,672	17,339,739

Attributable to:
Owners of the Holding Company		15,672,949	16,200,957
Non-controlling interest		1,245,723	1,138,782

		16,918,672	17,339,739


Earnings per share - basic and diluted		45.83	50.18

Directors' Report (Condensed)

The Directors of your Company have the pleasure in presenting to you the financial results of your Company which include both, stand-alone and consolidated audited financial statements for the fiscal year ended June 30, 2018.

Overview

Cement industry in Pakistan grew by 13.8% to 45.89 million tons during the fiscal year ended June 30, 2018 in comparison to 40.32 million tons during last year. While local sales volume registered a growth of 15.4% to 41.15 million tons during the current fiscal year in comparison to 35.65 million tons last year; export sales volume registered an increase of 1.8% to 4.75 million tons during the current fiscal year under review as compared to 4.66 million tons last year.

Your Company achieved an overall growth of 9.3% with total sales volume of 7.82 million tons during the current fiscal year as compared to 7.15 million tons sold last year. While local cement sales volume registered a growth of 14.8% (North 18.1% and South 11.0%) to reach 6.63 million tons as compared to 5.77 million tons last year, whereas, local clinker sales volumes declined by 80.1% to 0.06 million tons during the current fiscal year as compared to 0.30 million tons last year, resulting in the overall local sales growth of 10.2% to reach 6.69 million tons during the fiscal year as compared to 6.07 million tons last year; whereas, export sales volume increased by 4.6% to 1.13 million tons during the current fiscal year as compared to 1.08 million tons last year.

On a consolidated basis your Company achieved gross turnover of PKR 124.68 billion which is 13.6% higher as compared to last year's turnover of PKR 109.80 billion.

Business Performance

a. Production & Sales Volume Performance

The production and sales statistics of your Company for the fiscal year ended 2017-18 compared to last year are. as follows:




Clinker Production	7,426	6,873	8.0%
Cement Production	7,655	6,881	11.2%
Cement Sales	7,657	6,853	11.7%
Clinker Sales	161	297	(45.8%)

The production and sales volume data is graphically presented as under:

A comparison of the dispatches of the industry and your Company for the fiscal year ended 2017-18 with last year is presented below:




Cement Industry

Local Sales	41,147	35,652	5,495	15.4%

Export Sales
- Bagged	4,260	4,479	(219)	(4.9%)
- Loose	181	185	(4)	(2.2%)
- Clinker	305	-	305	100%
Total Exports	4,746	4,664	82	1.8%
Grand Total	45,893	40,316	5,577	13.8%

Lucky Cement

Local Sales
- Cement	6,627	5,772	855	14.8%
- Clinker	59	297	(238)	(80.1%)
Total Local Sales	6,686	6,069	617	10.2%

Export Sales
- Bagged	849	896	(47)	(5.2%)
- Loose	181	185	(4)	(2.2%)
- Clinker	101	-	101	100.0%
Total Exports	1,131	1,081	50	4.6%
Grand Total	7,817	7,150	667	9.3%


Local Sales	16.2%	17.0%	(4.7%)
Export Sales
- Bagged	19.9%	20.0%	(0.5%)
- Loose	100.0%	100.0%	0.0%
- Clinker	33.1%	-	100%
Total Export	23.8%	23.2%	2.6%
Grand Total	17.0%	17.7%	(4.0%)

A comparative year-wise analysis of market share of your Company is as under:

b. Financial Performance

On a consolidated basis your Company achieved Net Profit of PKR 16.17 billion of which PKR 1.35 billion is attributable to non-controlling interests which translates into an EPS of PKR 45.83 as compared to PKR 50.18 last year.

The standalone financial performance of your Company for the fiscal year ended 2017-18 as compared to last year is presented below:


Gross Revenue	67,377	61,602	9.4%
Net Revenue	47,542	45,687	4.1%
GP	16,952	21,298	(20.4%)
OP	13,870	18,573	(25.3%)
EBITDA	16,887	21,205	(20.4%)
NP	12,197	13,692	(10.9%)
EPS	37.72 / Share	42.34 /Share	(10.9%)

Revenue

During the fiscal year 2017-18 under review, your Company achieved an overall gross sales revenue growth of 9.4% as compared to last year. This was mainly due to the impact of higher Volumes and increase in Federal Excise Duty and Sales Tax.

Cost of Sales

During the fiscal year 2017-18 under review, per ton cost of sales of your Company increased by 14.7% as compared to last year. The increase was mainly attributable to increase in coal, packing material and other fuel prices.

Distribution of Gross Revenue

Distribution of Cost of Sales

Gross Profit

Your Company achieved gross profit margin of 35.7% for the fiscal year under review as compared to 46.6% reported last year.

Net Profit

Your Company achieved profit before tax of PKR 15,118.7 million during the current fiscal year under review as compared to PKR 18,778.3 million reported last year. Similarly, after tax profit of PKR 12,197.1 million was achieved during the fiscal year under review as compared to PKR 13,692.2 million reported last year.

Earnings per share

The earnings per share of your Company for the fiscal year ended June 30, 2018 was PKR 37.72 in comparison to PKR 42.34 reported during last year.

Projects - New and Ongoing

Brownfield cement plant expansion in KPK Province of Pakistan - 2.6 million tons per annum

The construction activity at the project site has commenced and Letter of Credit for the import of Plant and Machinery has also been established. The project remains on target to achieve commercial operations in the last quarter of calendar year 2019.

Investments

Investment in 1 x 660 MW, supercritical, coal based power project

Your Company has achieved financial close of the project on 25th June, 2018 after fulfilling all the necessary conditions and accordingly, PPIB has issued the necessary guarantee from the Government of Pakistan under the Implementation Agreement. Mobilization advance has been paid to the Contractors and the Notice to Proceed for carrying out works under Construction and Supply Contract has been issued. The Contractors have been mobilized at the site and levelling and piling work has commenced. The target date for Commercial Operations is 1st March, 2021.

Investment in automotive manufacturing plant - Kia Lucky Motors Pakistan Limited [KLM]

KLM started construction of the project in November 2017 and has also signed a New Entrant Agreement with the Ministry of Industries & Production under the Automotive Development Policy 2016-2021 in December 2017.

On 1st June 2018, KLM started its Complete Built Up (CBU) operations. It has opened up company owned / third party operated dealerships in some of the metro cities in Pakistan. The Project aims to start commercial production in second quarter of calendar year 2019.

Greenfield clinker production facility in Samawah, Iraq - 1.2 million tons per annum

Company is currently in negotiation with its suppliers to finalize plant and machinery. Target to achieve financial close and commercial production is third quarter of calendar year 2018 and last quarter of calendar year 2019, respectively.

Corporate Social Responsibility

Your company is committed to create value for the society in which it operates. Continuing on the agenda to support deserving students and increase the level of education in Pakistan, your company has been providing scholarships to deserving students of LUMS, IBA and other leading universities in Pakistan.

Keeping in view the importance and impact of women empowerment in Pakistan, your Company in collaboration with Zindagi Trust continued its support for two leading Government girls' schools in Karachi. With the primary focus of social intervention in the development of women education in the country and with the support of your Company, these schools have been transformed into model educational institutions for girls' education in Pakistan.

Provision of quality health care has also been your company's priority; which remains continued through financial support to the Aziz Tabba Foundation; a prominent philanthropic institution that is running Tabba Heart Institute and Tabba Kidney Institute. Furthermore, your Company has also extended support to Pakistan Welfare Association of the Blind.

As always, during the holy month of Ramadan your company fulfilled basic food needs of deserving families. Furthermore, contribution towards the community in connection with health-based initiatives and other welfare purposes were also made to highlight the true spirit of charity.

Your Company also continues to donate towards the cause of community development by supporting CPLC - an institution responsible for the safety and security of citizens in Sindh.

Your company has always taken its responsibility towards the environment seriously. In an effort to curtail carbon emissions in the atmosphere, your company has a comprehensive air quality measurement program that enables it to identify the limits of pollution parameters in the ambient air in and around the Cement plants. All mentioned parameters are closely monitored and kept well below the respective limits as specified by the National Environmental Quality Standards (NEQS). The levels of emissions from stacks for particulate matter, Sulphur dioxides, oxides of nitrogen, carbon monoxide and carbon dioxide are well below their respective limits specified in the NEQs.

Outlook

The overall furture outlook for the Cement industry remains positive and domestic sales are expected to remain strong on the back of on-going private and public sector construction projects as well as mega infrastructure development projects under the China-Pakistan Economic Corridor (CPEC) initiative; whereas, export sales have already improved in view of favorable market dynamics and foreign currency parity adjustments versus PKR.

Your Company's strong and debt-free financial position and free cash flow generating ability would continue to support investments in projects and avenues which can bring in further operational efficiencies and enhance shareholders' value.

Dividend & Appropriation

Taking into account the current capital and equity investment plans; the board has proposed the final cash dividend of PKR 8 per share subject to the approval of shareholders in the upcoming Annual General Meeting scheduled to be held on September 28, 2018. This proposed final cash dividend is in addition to the interim cash dividend of PKR 5 per share already paid, as previously recommended by the Board of Directors for the financial year ended June 30, 2018.

This approach remains in line with your Company's commitment to consistently provide sustainable returns to the shareholders. Movement in un-appropriated profit is as follows:

		PKR in '000
	Net Profit for the Year
	Un-appropriated profit at the beginning of the year	-
	Profit available for appropriation	12,079,216
		12,079,216
	Appropriations
	Interim cash dividend already paid @ PKR 5 per share	1,616,875
	Proposed final cash dividend @ PKR 8 per share	2,587,000
	Total Dividends for the Financial Year 2017-18	4,203,875
	Proposed transfer to General Reserves	7,875,341
	Un-appropriated profit at the end of the year	-
	Basic and diluted earnings per share - PKR	37.72

Acknowledgement

Directors of your Company take this opportunity to express their deep sense of gratitude for all the stakeholders for their encouragement and continued support.

We would like to place on record our sincere appreciation for the commitment, dedication and hard work put in by every member of the Lucky family and also for our shareholders, who have always shown their confidence and faith in the Company.

On behalf of the Board

MUHAMMAD YUNUS TABBA MUHAMMAD ALI TABBA

Chairman / Director Chief Executive / Director

Karachi: July 31, 2018

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

FR EAEXFDSFPEFF

Related Shares:

FTSE 100 Latest

Value8,474.74

Change-133.74