Cherat Cement Company Limited has reported a decline in profitability for the financial year ended June 30, 2026, as lower turnover and higher operating pressures weighed on its bottom line. Despite the decline in earnings, the company has announced a final cash dividend of Rs4 per share, taking the total cash dividend for the year to Rs5.50 per share.

According to the company’s financial results announced on August 21, 2026, Cherat Cement recorded net sales of Rs36.48 billion during FY2026, compared with Rs37.81 billion in the previous year. This represents a decline of around 3.5%.

The company’s gross profit also fell to Rs12.04 billion, from Rs13.97 billion a year earlier. Higher distribution, administrative and other expenses further affected operating performance, with operating profit declining to Rs11.64 billion from Rs13.48 billion in FY2025.

Profit falls 16% during the year

Cherat Cement’s profit before tax and levy stood at Rs11.30 billion, compared with Rs12.89 billion in the preceding year. After taxation, the company posted a net profit of Rs7.25 billion, down from Rs8.68 billion in FY2025.

The decline in earnings was also reflected in earnings per share. Basic and diluted EPS dropped to Rs37.34 from Rs44.68, indicating a reduction of roughly 16% year-on-year.

Finance costs, however, showed improvement, falling to approximately Rs341.6 million from Rs591.8 million in the previous year. This provided some relief against the pressure on operating profitability.

Shareholders to receive Rs4 final dividend

Despite weaker earnings, the company has maintained a sizeable payout to shareholders. Cherat Cement’s board recommended a final cash dividend of Rs4 per share, or 40%, in addition to the Rs1.50 per share interim dividend already paid during the year.

This brings the total cash dividend for FY2026 to Rs5.50 per share. The company has not announced any bonus shares or right shares.

Cash position remains strong

The company’s balance sheet remained relatively solid at the end of FY2026. Total assets increased to approximately Rs52.29 billion, compared with Rs50.55 billion a year earlier.

Cash and bank balances stood at around Rs755.7 million, while the statement of cash flows showed cash and cash equivalents of approximately Rs12.29 billion at year-end, compared with Rs9.74 billion at the end of FY2025.

However, cash generated from operating activities declined to Rs6.16 billion from Rs11.87 billion in the previous year, reflecting weaker operating cash generation during FY2026. The company also spent around Rs1.95 billion on property, plant and equipment, indicating continued investment in its operations.

Annual general meeting scheduled for October

Cherat Cement has scheduled its Annual General Meeting for October 13, 2026, at the company’s registered office at Factory premises, Village Lakrai, Nowshera, Khyber Pakhtunkhwa.

The company has also announced that its share transfer books will remain closed from October 6 to October 13, 2026, with the specified transfer deadline falling on October 5.

Outlook

Cherat Cement’s FY2026 results present a mixed picture. Revenue and profitability declined, while earnings per share also came under pressure. At the same time, lower finance costs, continued investment in fixed assets and a strong shareholder payout highlight areas of resilience in the business.

For investors, the key factors to watch going forward will include cement demand, pricing conditions, production costs, operating expenses and the company’s ability to improve margins while maintaining its dividend policy.