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Karachi -- January 20, 2020 (PPI-OT)

Cements - ACPL: Heightened selling and distribution costs and increased finance costs to drop down 2QFY20 earnings to PKR 2.55/share

Attock Cement Pakistan Limited's (ACPL) board meeting is scheduled tomorrow on 21st Jan-20 to announce financial result for 2QFY20E, wherein we expect the company to post earnings of PKR 351mn (EPS PKR 2.55), down by 11%YoY.

Despite significant expected overall dispatches growth of ~22%, led primarily by exports offtakes (up +2.1x), marginally improved retentions and lower cost structure, the Company is not expected to improve its net earnings as compared to the comparative period.

The decline in earnings is majorly due to heightened selling and distribution expenses ancillary to export sales and greater finance costs as compared to previous year.

Enhanced distribution costs and finance charges to drop down 2QFY20 earnings by 11%YoY to PKR 2.55/share

Attock Cement Pakistan Limited's (ACPL) board meeting is scheduled tomorrow on 21st Jan-20 to announce financial result for 2QFY20E, wherein we expect the company to post earnings of PKR 351mn (EPS PKR 2.55), down by 11%YoY, compared to PKR 394mn (EPS PKR 2.87) in the same period last year. Cumulatively, this will bring 1HFY20 earnings to PKR 5.16/share, down by 13%YoY as against PKR 5.94/share reported in 1HFY19. We expect the Company to declare nil dividends along with the result.

Despite healthy growth in volumes

Despite significant expected overall dispatches growth of ~22%, led primarily by exports offtakes (up +2.1x), marginally improved retentions and lower cost structure, the Company is not expected to...