Attock Cement Pakistan Limited (PSX: ACPL) was incorporated in Pakistan as a public limited company in 1981. The company is engaged in the manufacturing and sale of cement.
The company is the subsidiary of Pharaon Investment Group Limited Holding S.A.L, Lebanon.
Pattern of Shareholding
As of June 30, 2025, ACPL has a total of 137.427 million shares outstanding which are held by 2564 shareholders. Pharaon Investment Group Limited, S.A.L, Lebanon holds 84.06 percent shares of the company followed by local general public holding 7.23 percent shares. Around 5.99 percent of the company’s shares are held by Modarabas & Mutual Funds.
The remaining shares are held by other categories of shareholders.
Financial Performance (2021-25)
Except for a slide in 2022, ACPL’s topline posted year-on-year growth over the period under consideration. Conversely, its bottomline marginally plunged in 2021 followed by a massive fall in 2025. ACPL margins drastically fell until 2021. In 2022, gross margin continued to slump while operating and net margins rebounded. In the following year, gross margin saw considerable improvement, net margin also ticked up while operating margin slightly fell.
In 2024, gross and operating margins drastically fell while net margin picked up. On the flipside, in 2025, gross and operating margins rebounded while net margin plummeted. The detailed performance review of the period under consideration is given below.
ACPL registered 14.83 percent growth in its topline in 2021 which clocked in at Rs.21,244.56 million. The stimulus packages introduced by the government of Pakistan to revive the economy instilled life in the cement sector which registered 20 percent rise in its overall dispatches in 2021. ACPL’s overall dispatches rebounded by 15 percent year-on-year in 2021 to clock in at 3.366 million M tons.
Local off-take grew by 19.8 percent while export sales slightly dropped by 0.3 percent in 2021. Clinker exports, however, remained strong clocking in at 1.355 million M tons, up 17 percent year-on-year in 2021.
The inability of the company to pass on the impact of escalated coal, electricity and packaging prices to its customers due to superfluous supply in the market pushed down its GP margin to 21.85 percent in 2021 despite 9.26 percent rise in its gross profit. This was against the GP margin of 22.97 percent posted in 2020.
Distribution expense spiked by 20.34 percent in 2021 on the back of higher clinker export coupled with elevated fuel charges. 12 percent year-on-year rise in administrative expense in 2021 was the consequence of higher payroll expense despite streamlining of workforce to 990 employees.
ACPL made greater provisioning for WWF and WPPF in 2021, resulting in 23.68 percent higher other expense. Conversely, other income declined by 42.28 percent in 2021 as the company recognized no net exchange gain in 2021. Operating profit dwindled by 7.83 percent in 2021 with OP margin falling to 8.90 percent from 11 percent in the previous year.
Finance cost sank by 32 percent in 2021 due to monetary easing. Net profit stood almost stable at Rs.1107.35 million with EPS of Rs.8.06, however, NP margin inched down to 5.21 percent in 2021. This was against the EPS of Rs.8.06 and NP margin of 6 percent posted in 2020.
The slowdown of the global economies, rising energy tariff and hiking commodity prices due to Russia-Ukraine war coupled with Pak Rupee depreciation, high indigenous inflation, soaring discount rate and political instability not only halted the new construction projects but also resulted in the closure of ongoing projects.
As a result, the overall dispatches of cement industry decreased by 8 percent in 2022. ACPL’s topline registered 3.6 percent plunge in 2022 to clock in at Rs. 20,479.14 million. This came on the back of 32 percent slippage in the total off-take. While local sales posted a meager 6.8 percent rise, export of both cement and clinker drastically fell by 58 percent and 63 percent respectively in 2022.
Highest ever coal prices, unprecedented level of electricity tariff, paper bag cost as well as escalated fuel prices pushed down ACPL’s gross profit by 20.25 percent in 2022 with GP margin sliding down to 18 percent. Distribution expense leveled down by 41.24 percent in 2022 on account of significantly lower export related expenses.
Administrative expense mounted by 12.8 percent in 2022 on the back of increase in the number of employees from 990 in 2021 to 998 in 2022 coupled with adjustment of minimum wage rate owing to inflation. Other expense ticked up by 9 percent in 2022 in line with increased profit related provisioning.
However, it was conveniently offset by 582.93 percent rise in other income on the back of hefty exchange gain on trade receivables as well as dividend income from its subsidiary company, Saqr Al Keetan for Cement Production Company Limited (SAKCPCL). This drove up ACPL’s operating profit by 35.49 percent in 2022 with OP margin climbing up to 12.52 percent.
Finance cost shrank by 27.84 percent in 2022 despite high discount rate as ACPL has availed Temporary economic refinance facility, Renewable energy refinance facility, and payroll refinance scheme for most of its long-term loan and export refinance facility for its working capital requirements.
The imposition of 10 percent super tax during the year drove up tax expense by 175.19 percent in 2022, resulting in net profit registering 1.29 percent year-on-year rise to clock in at Rs.1121.59 million. EPS stood at Rs.8.16 and NP margin at 5.48 percent in 2022.
ACPL posted a robust 24.41 percent year-on-year topline growth in 2023. Its topline reached Rs.25,477.36 million in 2023. Local cement industry registered 16 percent slump in its off-take in 2023 owing to muted construction activity in the country. This was the consequence of unexpected monsoon spell, highest ever inflation and discount rate, Pak Rupee depreciation, commodity super cycle as well as supply chain disruptions due to diminishing foreign exchange reserves.
ACPL’s recorded 14.2 and 30.8 percent deterioration in its local and export sales during the year (see the graph of sales volume). Clinker exports, however, rebounded by 8.4 percent during the year.
The company was able to pass on the onus of cost hike to its customers, resulting in gross profit rising up by 53.25 percent in 2023 with GP margin mounting to 22.27 percent. Distribution expense surged by 45.44 percent in 2023 due to higher transportation and port handling charges.
Administrative expense also hiked by 13.47 percent in 2023 due to higher payroll expense despite contraction in workforce from 998 employees in 2022 to 961 employees in 2023. Increased provisioning for WWF and WPPF drove up other expense by 61.71 percent in 2023.
Conversely, other income marched down by 66.88 percent in 2023 due to lower exchange gain and no dividend earned from SAKCPCL. Operating profit grew by 23.59 percent in 2023 with OP margin slightly ticking down to 12.43 percent. Finance cost spiked by 12.13 percent in 2023 due to higher discount rate. Net profit spiraled by 35.17 percent year-on-year in 2023 to clock in at Rs.1516.06 million with EPS of Rs.11.03 and NP margin of 5.95 percent.
In 2024, ACPL registered 12 percent year-on-year rise in its topline which clocked in at Rs.28,536.53 million. During the year, the overall dispatches of the company ticked up by 13.60 percent to clock in at 2.335 million M tons. This came on the back of clinker exports while local and export sales of cement tapered in 2024. Cost of sales surged by 17.37 percent in 2024 due to high energy cost and inflationary pressure.
Cost pressure coupled with lower retention prices due to increased competition and lower demand resulted in 6.70 percent downtick recorded in gross profit in 2024. GP margin also fell to 18.55 percent in 2024. ACPL recorded 37.56 percent higher distribution expense in 2024 due to higher diesel prices, port handling charges as well as implementation of axle load. Administrative expense ticked up by 8.85 percent due to higher payroll expense. This was despite the fact that the number of employees was reduced from 961 employees in 2023 to 941 employees in 2024.
Other expense tumbled by 56.65 percent in 2024 due to lower profit related provisioning booked during the year. Other income also contracted by 47.89 percent in 2024 as no exchange gain was recorded during the year.
ACPL recorded 37.37 percent lower operating profit in 2024 with OP margin falling down to 6.95 percent. Finance cost surged by 17.51 percent in 2024 due to higher discount rate and increased short-term borrowings to meet working capital requirements.
What proved to be the game changer for ACPL in 2024 was the gain of Rs.4289.65 million on gain on disposal of subsidiary recorded in 2024. This represented gain on divestment of 18 million shares of SAKCPCL. Consequently, ACPL posted 135.25 percent growth in its net profit which clocked in at Rs.3566.52 million in 2024. This translated into EPS of Rs.25.95 and NP margin of 12.50 percent.
In 2025, ACPL posted year-on-year growth of 16.72 percent in its topline which clocked in at Rs.33,309,08 million. This was due to 18.36 percent increase in the company’s overall dispatches which clocked in at 2.76 million M tons in 2025.
Local sales posted 1.23 percent downtick to clock in at 1.22 million M tons. Export of cement also fell by 14.94 percent to clock in at 106,620 tons. Conversely, export of clinker registered 47.69 percent growth to clock in at 1.433 million M tons.
During the year, the contribution of export sales in the overall sales mix of the company increased to 55.71 percent versus 46.92 percent in the previous year. The company took optimum benefit of increased demand from the West African market and the partial exit of Egypt from the regional market. The newly commissioned line 4 manufacturing facility also enabled the company to meet the growing clinker demand in the global market.
While retention prices dipped by Rs.169 per ton during 2025, reduction in fuel prices due to lower coal prices and efficient power mix due to reduced reliance on national grid resulted in 50.60 percent growth in gross profit recorded in 2025. GP margin was recorded at 23.94 percent in 2025. Higher export sales resulted in 37.57 percent higher distribution expense in 2025.
Administrative expense mounted by 24.87 percent in 2025 due to higher payroll expense as well as fee & subscription charges pertaining to SAP S/4 HANA. A massive 107.30 percent spike in other expense in 2025 was the result of increase profit related provisioning. Other expense was conveniently offset by other income of Rs.1433.45 million recognized in 2025, up 802 percent year-on-year. This was on account of gain recognized on the disposal of Pakistan Investment Bonds (PIB) and unwinding of government grant.
ACPL recorded 135.57 percent higher operating profit in 2025 with OP margin clocking in at 14 percent.
During the year, the company didn’t record any gain on disposal of subsidiary as it did in the previous year. Moreover, finance cost escalated by 440.69 percent in 2025. This was due to short-term borrowings obtained during the year to finance the investment in PIB.
ACPL recorded 51.46 percent diminution in its net profit which clocked in at Rs.1731.09 million in 2025. This translated into EPS of Rs.12.60 and NP margin of 5.20 percent in 2025.
Recent Performance (9MFY26)
During the nine-month period of the ongoing fiscal year, ACPL recorded a staggering 40 percent year-on-year growth in its net sales which clocked in at Rs.33.11 million. This was on account of improvement in both local and export dispatches during the period. Local dispatches clocked in at 1.02 million M tons, up 7.40 percent year-on-year. This was due to improved macroeconomic indicators.
Export sales clocked in at 1.638 million M tons, up 59 percent year-on-year due to increased demand from West African markets. Stronger volumes, higher retention prices and reduced production cost driven by lower fuel prices resulted in 82.27 percent growth in gross profit in 9MFY26.
GP margin clocked in at 27.82 percent in 9MFY26 versus GP margin of 21.37 percent recorded in 9MFY25. Distribution expense mounted by 40.89 percent in 9MFy26 due to export related expense incurred during the period. Administrative expense also spiked by 28.50 percent during the period owing to higher payroll expense.
Higher profit related provisioning resulted in 146.24 percent spike in other expense in 9MFY26. Other expense was offset by other income of Rs.480.90 million recognized in 9MFY26, down 61.26 percent year-on-year. Decline in other income during 9MFY26 appears to be the consequence of monetary easing as ACPL’s short-term investment and bank balances both increased during the period.
Operating profit strengthened by 67.41 percent in 9MFY26 with OP margin clocking in at 14.80 percent versus OP margin of 12.37 percent registered in 9MFY25. Finance cost dropped by 45.52 percent in 9MFY26 due to monetary easing and lower outstanding borrowings.
ACPL posted net profit of Rs.2460.58 million in 9MFY26, up 87.88 percent year-on-year. This translated into EPS of Rs.17.90 and NP margin of 7.43 percent in 9MFY26 versus EPS of Rs.9.53 and NP margin of 5.54 percent recorded in 9MFY25.
Future Outlook
Recent hike in fuel prices due to Middle Eastern crisis will negatively impact the cost of production of cement companies. Moreover, in order to manage current and fiscal deficit, the government will cut PDSP spending which will reduce the infrastructure development activities in the country resulting in reduced local demand.
On the export front, while regional markets offer prospects, the disruption of trade routes may inflate the logistics cost which may not allow Pakistani exporters to grab this opportunity.
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