Bestway Cement Limited (Bestway Cement or 'The Company') – Flagship Company of Bestway Group (BG) – is a public limited company. The company obtained listing on Pakistan Stock Exchange on April 9, 2001. Bestway Cement registered Head Office is situated at College Road, F- 7 Markaz, Islamabad. The company has multiple cement manufacturing facilities which are established at locations of Hattar, Farooqia, Chakwal, Kallar Kahar & Mianwali. The company’s sales office is located in Rawalpindi.

Bestway Cement was formally incorporated in 1993 and commenced operations in 1998. The company has history of successful acquisitions of cement plants. These acquisitions have contributed in solidifying the company’s footprint in Pakistani cement industry. Latest acquisition held was of ‘Pakcem Limited’ with and into Bestway Cement. In Aug-16, the Islamabad High court sanctioned the Scheme of Amalgamation of Pakcem Limited – 88% owned subsidiary – with and into Bestway Cement; the effective date of the merger is September 16, 2016. Bestway Cement vividly consolidated operations of Pakcem with the parent company in time of one and half years.

The main business activity of the Company is the manufacturing, marketing, and sale of cement and clinker. Installed cement manufacturing capacity of 15.3 mln tons p.a (Based on 300 days). The key products include i) Ordinary Portland Cement (OPC), ii) Pakcem, iii) Sulphate Resistant Cement, iv) Quick Setting Cement, v) Low Alkali OPC, and vi) Clinker. The Company operates through distributors, dealers, and retailers in the local market.

Bestway Cement is majority owned (72.7%) by Bestway Group (BWG), UK, a diversified conglomerate with interests across cement, banking, wholesale, and healthcare sectors. The Group’s shareholding in the Company is primarily routed through corporate entities (~60%), while individuals from the sponsoring family collectively hold around 12.3%. Key holding vehicles include Bestway International Holdings Limited and Bestway Foundation.

There has been no change in the majority ownership strucuture. Moreover, the Company does not have any plans for corporate restructuring or discontinuation of any business unit operations. Hence, the ownership structure is expected to remain stable in the near future.

The Company has a long-standing track record in the cement sector, which demonstrates the sponsors’ expertise in navigating various economic cycles and their deep understanding of industry dynamics. Bestway Group, the principal sponsor, is a British multinational conglomerate headquartered in London, United Kingdom, with operations spanning both the UK and Pakistan. Over the past several decades, the Group has built a diversified business portfolio, including interests in cement, banking, wholesale, and healthcare. This diversified presence reflects the sponsors’ strong business acumen, prudent investment strategy, and ability to create synergies across sectors. The Group’s established reputation and extensive experience provide strategic depth and financial strength to Bestway Cement, reinforcing its ability to sustain market leadership while adapting to evolving macroeconomic and sectoral challenges.

Bestway Group (BWG), is a diversified multinational conglomerate. As of June 2024, the Group reported total equity of £2.2 billion, total assets of £24 billion, and net income of £77 billion. The Group’s business interests span across wholesale trade, cement manufacturing, global banking, real estate, and pharmaceuticals. This broad-based portfolio not only underscores BWG’s strong financial standing but also reflects its ability to generate stable and diversified cash flows. The Group’s robust financial profile provides comfort to Bestway Cement, offering both strategic and financial support when required.

The Company’s Board of Directors comprises nine members, predominantly nominated by Bestway Group (BWG). Of these, two directors are executive members, including the Chief Executive Officer, while the remaining seven are non-executive directors, three of whom serve as independent members. The composition reflects a balanced governance structure, ensuring representation of both management and independent oversight. Importantly, the Board’s structure and practices are fully aligned with the Code of Corporate Governance applicable to listed companies, thereby reinforcing compliance, transparency, and accountability in decision-making.

The Board members are equipped with the necessary skill set, supported by their diversified professional backgrounds across business, finance, and industry. This provides the Company with a strong governance framework and effective strategic oversight. Sir Mohammed Anwar Pervez, has been associated with Bestway Group since its inception in 1984.  A leadership transition took place within Bestway Group last year, wherein Mr. Zameer M. Choudrey has assumed the role of Chairman, while his son has taken over as Chief Executive Officer. However, this change was not reflected in the Bestway Cement through its group. He has played a pivotal role in transforming it into one of the largest and most diversified business conglomerates with operations in the United Kingdom and Pakistan. Sir Anwar established a strong foothold in the wholesale business, which later expanded into cement manufacturing, financial services, real estate, and healthcare.

To assist the Board in the decision-making process, four specialized committees are in place, namely the i) Audit Committee,  ii) Human Resource and Remuneration Committee, iii) Nomination Committee, and iv) Risk Management Committee. Each of these committees plays a distinct role in strengthening governance practices. During the year four (4) audit committee meetings were held, out of which two (2) were also attended by the External auditors of the Company.

The Audit Committee oversees financial reporting, internal controls, and audit functions, while the HR&R Committee is responsible for policies relating to human capital, performance evaluation, and compensation. The Nomination Committee manages board nominations, succession planning, and assessment of board effectiveness, whereas the Risk Management Committee focuses on identifying, assessing, and mitigating strategic, financial, and operational risks. Collectively, these committees enhance the effectiveness of the Board by ensuring transparency, accountability, and informed decision-making.

The Company 's external auditors M/s. A.F. Ferguson & Co., Chartered Accountants, has given unqualified opinion on the company’s financial statements for the year ended June, 2025.

Bestway Cement operates under a multi-tier organizational structure that is divided into five key functions: i) Administration, Marketing and Corporate Affairs; ii) Finance & IT; iii) Procurement, Planning and Coordination; iv) Works; and v) Sales. Each of these functions is headed by a dedicated director who reports to the Managing Director. The structure is designed to ensure operational efficiency, with clearly defined roles, responsibilities, and reporting lines. A high degree of delegation across the hierarchy enables swift decision-making and effective execution of strategic and operational initiatives.

The Company is led by Mr. Zameer M. Choudrey, ICAEW, who has been associated with Bestway Cement since 1994. A leadership transition took place within Bestway Group last year, wherein Mr. Zameer M. Choudrey has assumed the role of Chairman, while his son has taken over as Chief Executive Officer. However, this change was not reflected in the Bestway Cement through its group. Although based in the United Kingdom due to his wider professional responsibilities, Mr. Choudrey maintains close oversight of the Company’s operations, frequently visiting Pakistan and remaining actively involved in all strategic, business, and financial decision-making processes.

The finance function is headed by Mr. Muhammad Danish Khan, who is currently designated as Chief Financial Officer. His progression within the Company reflects management’s emphasis on internal capacity building and the development of leadership talent. Collectively, the senior management team is equipped with the necessary technical skills, professional expertise, and sector-specific experience, enabling the Company to sustain its operational efficiency and strategic growth trajectory.

A monthly Coordination Committee (ManCom) meeting is convened, attended by the CEO (either in person or via teleconference), four Executive Directors, and five General Managers Works. These meetings serve as a structured platform for reviewing the Company’s operational performance, monitoring progress against strategic objectives, and addressing key challenges. Decisions are taken on the spot, ensuring timely resolution of issues and effective coordination across functions. This practice reflects the Company’s emphasis on efficiency, accountability, and collaborative management.

The Company has implemented a SAP-based ERP system, which integrates core business processes and supports efficiency across operations. In addition, a comprehensive Management Information System (MIS) is in place, providing timely and detailed reporting to department heads. This facilitates effective monitoring, informed decision-making, and enhanced operational control.

The Company’s manufacturing facilities are geographically well-spread, providing strategic access to key markets while ensuring operational flexibility. All plants are equipped with state-of-the-art technology infrastructure, enabling efficiency, consistency in quality, and adherence to environmental standards. To meet its energy requirements, the Company benefits from a diversified mix of power sources, including Waste Heat Recovery Power Plants (WHRPP), boilers, WAPDA supply, and gas-based generators. This diversified energy portfolio not only enhances reliability of power supply but also supports cost optimization and sustainability objectives.

The cement industry in Pakistan remained under strain throughout FY2025, with minimal growth of 3% to a total of 46.004million tons, primarily due to economic instability, high inflation, elevated interest rates, and suppressed public and private construction activity. Domestic sales declined by 2% to 37.01 million tons, while export dispatches surged by 30% to 9.2 million tons. Despite an increase in installed capacity to 84.5 million tons per annum, capacity utilization remained weak at ~53% due to sluggish demand. Manufacturers faced significant cost pressures from rising electricity tariffs, and higher royalty rates, especially in Punjab, where a shift to 6% of ex-factory price created a cost gap of up to PKR 1,000/ton versus other provinces. A temporary stay on this royalty regime is currently in place. To maintain margins, manufacturers passed on increased input costs to consumers. Many also continued their shift toward renewable energy sources like solar and Waste Heat Recovery (WHR) to reduce operating costs and improve sustainability. Regulatory developments included the implementation of a Minimum Retail Price (MRP) by the FBR for improved sales tax compliance and a continued burden from FED and provincial royalties. On the policy front, the PM’s Cement Export Task Force has committed to resolving structural issues, such as axle load limits, port congestion, and rail bottlenecks, to facilitate exports, which rose to 9.2 million tons in FY25. Looking ahead, macroeconomic indicators such as falling inflation, declining policy rates, and exchange rate stability offer cautious optimism. The approval of a PKR 4.2 trillion development budget, potential revival of CPEC Phase II, and housing schemes are expected to drive gradual demand recovery. However, realization depends on timely implementation and sustained improvement in construction activity.

After commencement of cement production in browneld cement plant at Hattar of 7,200 tonnes of clinker per day and the greeneld plant at Mianwali site on 17 February 2023 and 29 March 2023 respectively, the Company’s capacity has increased to ~15.3 million tonnes of cement per annum, bringing it at par with the capacity of Lucky Cement. They are followed by Fauji cement with ~7mln MT capacities respectively. Company’s total cement dispatches decreased by 2%, which is lower than the industry increase of 3%. This is mainly due to low demand and intense competition in the market, during the period under review. Despite intense competition, Bestway has successfully maintained its strong market position in the north region.

During FY25, volumetric analysis reveals that the Company’s total production witnessed stability whereas, the dispatches decreased by 2%. Local-export dispatches mix (FY25: 99:1; FY24: 99:1), almost remained filled by domestic market sales. Total cement capacity utilization slightly declined to 44.7% (FY24: 44.8%) due to an decrease in local demand. The company’s net turnover witnessed an upward trend and recorded at PKR 107bln in FY25 as compared to PKR 103bln in FY24 due to stable volumes sold coupled higher selling price, while profits were recorded at PKR ~23bln (FY24: PKR 13bln). Going forward, the Company’s capacity utilization and sustainability of profits remain stable due to reduced interest rates and sustained domestic market sales.

The Company has successfully preserved and enhanced its margins through effective cost optimization measures. In FY25, the reported Gross Profit Margin improved to 34.6%, up from 31% in FY24, primarily supported by successful price adjustments during the year. Similarly, the Net Profit Margin strengthened to 22.1% during 9MFY25, compared to 13.2% in FY24, resulting from lower leveraging and reduce kibor rates, reflecting improved operational efficiency and sustained pricing discipline.

Despite facing a host of economic and political challenges, the Company successfully commissioned two state-of-the-art cement plants, along with Waste Heat Recovery Power Plants (WHRPP), at Mianwali and Hattar during FY23. These expansions have positioned Bestway Cement better within the country. In line with its sustainability agenda, the Company is progressively reducing its dependence on the national grid through alternative energy solutions. Solar power facilities have been installed across all five plant locations, complemented by WHRPPs, thereby ensuring cost efficiency, operational reliability, and a reduced carbon footprint.

As of FY25, Bestway Cement’s working capital requirements, measured by the net cash cycle (net working capital days), improved to 16 days from 17 days in FY24, indicating slightly better efficiency in managing inventory, receivables, and payables. Trade payable days remained unchanged at 11 days. The Company funds its working capital through a mix of internal cash flows and short-term borrowings (STBs), with the quantum of STBs rising to PKR 19.23 billion in FY25 from PKR 12.8 billion in the previous year. The increase in STBs reflects higher reliance on external financing, likely driven by elevated input costs or working capital needs despite operational efficiency gains. The current ratio declined to 1.1x in FY25 from 1.6x in FY24, suggesting tighter liquidity buffers, which, if prolonged, may exert pressure on financial flexibility.

As of FY25, EBITDA surged to PKR 38.7 billion from PKR 34.9 billion in FY24, reflecting a significant improvement in operational profitability. FCFOs stood at PKR 27.5 billion (FY24: PKR 29.7 billion), with the decline primarily attributable to higher tax outflows during the year. Consequently, the interest coverage ratio improved to 5.1x from 3.1x in FY24, indicating a stronger ability to meet financial obligations despite reduced operating cash flows.

During FY25, total borrowings and current maturity of long-term debt (CMLTD) stood at PKR 58 billion and PKR 9 billion, respectively, compared to PKR 62 billion and PKR 8.7 billion in FY24. The commencement of new projects, coupled with repayment of long-term debt, reduced the debt-to-equity ratio to 31.2% from 49.7% in FY24, reflecting a stronger capital structure. The Company’s equity base expanded significantly to PKR 128 billion in FY25 (FY24: PKR 63 billion), driven by retained earnings, thereby enhancing its ability to absorb economic shocks and sustain financial stability over the medium term.