Bestway Cement Announces 60% Dividend Despite 16% Profit Drop in 1HFY24
Despite a 16% year-on-year drop in profit for the first half of the fiscal year 2024, Bestway Cement Limited declares a 60% dividend, showcasing resilience amid challenging market conditions.
Bestway Cement Limited reported a decrease in its earnings for the first half of the fiscal year 2024, with profits falling by 15.99% year-on-year to Rs6.78 billion, compared to Rs8.07 billion in the same period last year. Despite this decline, the company announced a significant interim cash dividend of Rs6 per share, equivalent to 60%. This decision reflects the company's confidence in its financial stability and commitment to rewarding shareholders.
The company's net revenue saw a substantial increase of 28.33% year-on-year, reaching Rs54.86 billion, up from Rs42.75 billion in the previous year. This growth was driven by higher sales volumes, although it was offset by a 36.09% increase in the cost of sales, amounting to Rs39.11 billion. Consequently, the gross profit improved by 12.4% year-on-year to Rs15.75 billion.
Administrative expenses rose by 7.6% year-on-year to Rs757.33 million, while selling and distribution expenses, along with other expenses, also saw increases. However, other income surged by over three times year-on-year to Rs458.41 million, primarily supported by inflows from associates amounting to Rs2.21 billion, a 44.85% increase from the previous year.
The company's finance costs soared, mainly due to higher interest rates, which significantly impacted profitability. Despite a lower tax payment compared to the previous year, the overall profit for the period saw a decline.
Source: Mettis Global News
