Fauji Cement Posts Highest-Ever Profit of Rs. 13.3 Billion in FY25

Fauji Cement Company Limited (FCCL) has announced its financial results for FY25, posting a record profit of Rs. 13.3 billion, marking a 62% year-on-year increase from Rs. 8.2 billion in FY24. This is the highest-ever profit recorded by the company. The company’s earnings per share (EPS) rose to Rs. 5.43, compared to Rs. 3.35 in the previous year. For the fourth quarter of FY25, FCCL reported earnings of Rs. 3.9 billion (EPS: PKR 1.60), reflecting a 232% year-on-year increase and an 83% quarter-on-quarter growth. Alongside the results, the company announced a dividend per share (DPS) of Rs. 1.25. The company’s net revenue for FY25 reached Rs. 89 billion, reflecting an 11% year-on-year increase, driven by a 6% rise in dispatches. For the fourth quarter, revenue stood at Rs. 21.8 billion, a 6% increase from Rs. 20.6 billion in the same period last year, supported by higher domestic dispatches. On a quarter-on-quarter basis, sales also grew by 13%, according to a report by Arif Habib Ltd. Gross margins improved significantly to 35.5% in FY25, up from 32.1% in FY24. This improvement was attributed to higher sales volumes, better retention prices, and cost optimization initiatives. In the fourth quarter, gross margins increased by 290 basis points year-on-year, reaching 39.1%, driven by higher domestic dispatches and an improved fuel and power mix. Selling and distribution expenses declined by 11% year-on-year to PKR 2.9 billion in FY25, with a 6% reduction recorded during the fourth quarter. Finance costs also dropped by 10% year-on-year to PKR 4.7 billion, with a 50% decline in the fourth quarter due to lower interest rates. The company recorded an effective tax rate of 38.1% in FY25, compared to 46.4% in the previous year. FCCL’s board has also approved the expansion of its PP Bags Manufacturing Plant at Hattar to meet 100% of the company’s in-house bag requirements, which is expected to further enhance gross margins.