LCI’s profit-after-tax jumps 88% in Oct-Dec

Lucky Core Industries Limited (LCI) saw its profit-after-tax (PAT) jump by around 88% to Rs2.502 billion in the three months ended December 31, 2023, due to an increase in sales and other income.

The company registered a PAT of Rs1.334 billion in the same period last year (SPLY), according to the profit or loss accounts filed with the Pakistan Stock Exchange (PSX) on Thursday.

Resultantly, earnings per share (EPS) increased to Rs27.10 in the period under review compared to Rs13.27 in SPLY.

The company’s board of directors approved an interim cash dividend in respect of the financial year ending June 30, 2024, at the rate of 270% i.e. Rs27 per share of Rs10 each to be payable to the shareholders.

The company’s net sales surged by 23% to Rs31.063 billion during the three-month period, which ended December 31, 2024, compared to Rs25.287 billion recorded in the prior year.

LCI’s operating expenses surged to Rs976.15 million in the last quarter of CY23, as compared to Rs664.74 million in SPLY, a YoY increase of 47%.

The company’s other income showed growth of 877% YoY hitting Rs898.27 million in 4QCY23, compared to Rs102.41 million in 4QCY22.

The company booked effective taxation at 35% in 4QCY23 as compared to 33% in 4QCY22.

LCI said that its business operations continued to face challenges as a consequence of inflationary pressures, higher tax incidence and interest rates, coupled with an uncertain demand outlook.

“Though there was some respite in the form of easing import restrictions, the prolonged monetary tightening measures have negatively impacted the consumers’ purchasing power resulting in a significant demand compression across all segments of the economy,” the company said.

LCI, formerly known as ICI Pakistan Ltd, is a publicly listed company incorporated in Pakistan. The Company is engaged in five diverse businesses: polyester, soda ash, chemicals & agri sciences, pharmaceuticals and animal health.

Earlier this month, Lucky Core Ventures (LCV), a wholly-owned subsidiary of LCI terminated a Share Purchase Agreement (SPA) with Lotte Chemical Corporation (LCC), a South Korean chemical giant, for the acquisition of over 1.13 billion ordinary shares of its affiliate Lotte Chemical Pakistan Limited (LOTCHEM).