Key Takeaways
- Safe Mix Concrete Limited (SMCPL) reported a net profit recovery in 2026 after posting losses in 2019 and 2020.
- The company's shareholding is distributed among the CEO, Arif Habib Corporation Limited, and the local general public.
- SMCPL's topline and margins showed fluctuations, with the highest net profit and margins recorded in 2023.
Safe Mix Concrete Limited (SMCPL), a subsidiary of the Arif Habib Group, has reported a net profit recovery in 2026, following a period of losses in 2019 and 2020. The company, which is engaged in the manufacturing and sale of ready mix concrete, building blocks, and construction of factories, has seen its financial performance fluctuate over the years.
As of June 30, 2026, SMCPL had a total of 25 million shares outstanding, held by 1068 shareholders. Mr. Abdus Samad Habib, the CEO of SMCPL, holds 35.84 percent of the company's shares, while Arif Habib Corporation Limited holds 27.63 percent. The local general public also accounts for 27.63 percent of the shares, with the remaining shares held by other categories of shareholders.
Historically, SMCPL's topline tumbled only in 2021 and 2024, with the highest net profit and margins recorded in 2023. The company's performance review over the period from 2021 to 2026 shows that net profit inched down in 2024 and 2025 but recovered significantly in 2026.
In 2021, SMCPL's topline decreased by 45.97 percent year-on-year to Rs.221.23 million. The company reduced its production capacity from 1.47 million cubic meters to 0.876 million cubic meters, utilizing only 5.87 percent of the available capacity. Cost of sales also shrank by 51.8 percent year-on-year, mainly due to the management's focus on reducing fixed overhead costs.
Gross profit for 2021 stood at Rs.17.63 million, with a gross profit margin of 7.97 percent. The company did not incur any sales commission related to KMC in 2021, and impairment loss of financial assets considerably tumbled, resulting in a 99 percent year-on-year drop in distribution expense. Administrative expenses decreased by 23.78 percent year-on-year, primarily due to a reduction in payroll expenses.
Other income declined by 42 percent year-on-year in 2021, mainly due to lesser pumping and grout charges, curtailed deferred income, and lower profit on deposit accounts due to a low discount rate. This resulted in an operating profit of Rs.8.22 million with an operating profit margin of 3.71 percent, compared to an operating loss of Rs.97.07 million in 2020.
Despite the challenges faced in 2021, SMCPL managed to recover its financial performance in subsequent years. The company's net profit and margins reached their highest levels in 2023, before experiencing a slight decline in 2024 and 2025. However, the company's financial health improved significantly in 2026, indicating a positive trajectory for the future.
The company's performance is closely tied to the broader economic environment, with government initiatives aimed at promoting the housing sector playing a significant role. While the northern wing of the country saw the launch of numerous projects, the southern region remained relatively quiet, affecting the company's operations.
