The profit after tax of Lotte Pakistan has increased to Rs 3.698 billion in the half year period ended June 30, 2011 as compared to Rs 2.176 billion earned in the corresponding period in 2010. The board of directors of the company in its meeting held here on August 24, 2011 declared that the company's earning per share has increased to Rs 2.44 in the period under review against Rs 1.44 in the same period last year.
According to the financial results sent to Karachi Stock Exchange, the company's revenue increased to Rs 30.661 billion in the half-year period in 2011 against Rs 20.796 billion in the same period in 2010. The cost of sales increased to Rs 25.004 billion against Rs 17.511 billion. The company's profit before taxation increased to Rs 5.385 billion in the half-year period in 2011 against Rs 3.229 billion in the same period in 2010.
On quarterly basis, the company's profit after tax stood at Rs 1.209 billion translating earning per share of Re 0.80 in the quarter ended June 30, 2011 against after tax profit of Rs 1.255 billion with per share earning of Re 0.83 in the same period in 2010.
The company said that their gross profit for the quarter was lower than the same period last year due to lower PTA tariff and higher cost of electricity. The distribution and selling expenses for the quarter were higher than the corresponding quarter last year mainly due to higher export sales on which outward freight and handling charges are borne by the company.
Administrative expenses were also higher that the corresponding quarter last year mainly due to higher marketing costs and overall impact of a high inflation rate and resultant increase in payroll and other costs. Finance income was higher than second quarter 2010 mainly due to higher interest and other income earned on surplus cash generated from operations. Finance costs were lower in this quarter mainly due to partial prepayment of the parent company loan and consequent reduction in interest charged thereon.