February 26, 2026 (MLN): Bestway Cement Limited (PSX:BWCL) reported a net profit of Rs11.09bn for the half year ended December 31, 2025, a slight 3% decrease from the Rs11.47bn profit recorded in the same period last year.

The company's earnings per share dipped to Rs18.61 from Rs19.23 in the corresponding period of the previous year.

Alongside the financial results, the company announced a robust interim cash dividend of Rs10per share (100%) for the quarter ended December 31, 2025.

The company's net turnover remained largely flat, edging down by less than 1% to Rs55.37bn from Rs55.60bn, even as gross turnover witnessed a 2% increase.

Cost of sales, however, increased 13% to Rs39.75bn from Rs35.20bn. This rising cost of production heavily impacted the top-line margins, resulting in a gross profit of Rs15.62bn, down 23% from Rs20.41bn in the prior period.

Consequently, the gross profit margin contracted significantly to 28.2% from 36.7% in H1 FY2025, indicating pressure from higher input costs relative to net revenue generation.

Despite the gross margin compression, the net profit margin remained incredibly resilient at 20.0%, compared to 20.6% in the same period last year, thanks to below-the-line support.

On the operating side, selling and distribution expenses decreased 25% to Rs609.90m from Rs812.03m, and other operating expenses dropped 16% to Rs805.49m from Rs959.02m. However, administrative expenses rose 31% to Rs1.20bn from Rs914.86m.

Hit by the lower gross profit, operating profit fell 27% to Rs13 bn from Rs17.72bn in H1 FY2025.

Other net income decreased 63% to Rs264.26m from Rs718.63m.

Providing a major buffer to the bottom line, finance costs plummeted 43% to Rs2.63bn from Rs4.60bn.

Profit before tax reached Rs16.91bn, down 5% from Rs17.79bn in the prior period.

The company recorded an income tax expense of Rs5.82bn, an 8% decrease from Rs6.32bn in the corresponding period last year.

Ultimately, the severe 27% drop in operating profit caused by margin compression was almost entirely offset by the sharp 43% drop in finance costs and the massive 59% boost in profits from investees, limiting the overall net profit decline to just 3%.