Maple Leaf Cement Earns Rs12.56 Billion, Skips Dividend, Approves Rs4 Billion Financing

• Consolidated Profit Rises While Standalone Earnings Nearly Halve

LAHORE: Maple Leaf Cement Factory Limited's board delivered a mixed verdict to shareholders on Thursday, posting a consolidated profit rise for the year ended June 30, 2026, while declaring zero cash dividend, zero bonus shares and zero right shares for the second consecutive year.

The board of directors approved investment of up to Rs2 billion in loans and advances to Kohinoor Textile Mills Limited, the company's own holding company, to fund KTML's working capital needs. A second, identically sized facility will flow to Maple Leaf Capital Limited, an associate company, for the same purpose. Both facilities remain subject to shareholder approval under Section 199 of the Companies Act, 2017, and neither has been finalised yet. KTML's board is separately expected to recommend a reciprocal Rs2 billion facility back to Maple Leaf Cement, which will also require sign-off from KTML's own shareholders.

Maple Leaf Cement Profit Rises

The numbers behind the decision tell two very different stories. On a consolidated basis, the company along with its subsidiaries recorded total revenues of Rs85.15 billion for FY26 compared to Rs68.65 billion in the previous year, and profits grew to Rs12.56 billion from Rs11.50 billion. On a consolidated basis, earnings per share also went up to Rs11.34 from Rs10.98.

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On a non-consolidated and standalone basis, however, the results show a contrasting trend. Standalone profit after tax for FY26 nearly halved to Rs8.45 billion from Rs17.04 billion, and standalone earnings per share dropped to Rs8.06 from Rs16.26. On a standalone basis, finance costs also increased to Rs4.49 billion from Rs3.55 billion, and Maple Leaf Cement invested Rs76.09 billion in long-term equity investments in addition to spending Rs62.02 billion to purchase a subsidiary. Long-term loans from financial institutions on the standalone balance sheet nearly quadrupled to Rs76.25 billion from Rs9.78 billion.

The balance sheet shows a sharp increase in long-term borrowing alongside major investment in assets and subsidiaries. Property, plant and equipment on a consolidated basis grew almost two times to Rs140.12 billion from Rs72.11 billion, while intangible assets rose to Rs39.43 billion from only Rs62.4 million a jump that often accompanies an acquisition, though the financial statements do not specify the source. Equity on a consolidated basis increased to Rs94.20 billion from Rs70.96 billion.

Investors may focus on the absence of a dividend despite higher consolidated earnings and the board's decision to approve related-party financing that still awaits shareholder consent. The company's annual general meeting is scheduled for September 17 at its Lawrence Road office in Lahore, where shareholders will vote on the related-party facilities and the year's results. Share transfer books close from September 11 to September 17 to determine voting eligibility.