LOTCHEM 1HCY26 profit jumps over fivefold

July 16, 2026 (MLN): Lotte Chemical Pakistan Limited's (PSX: LOTCHEM) profit after taxation more than fivefold to Rs4.31bn for the half-year ended June 30, 2026, compared to Rs741.78m in the corresponding period last year.

Earnings per share climbed in tandem, reaching Rs2.85 against Rs0.49 in 1HFY25.

Revenue from contracts with customers grew 11.28% year-on-year to Rs44.71bn from Rs40.18bn, while cost of sales rose at a much slower pace of 1.77% to Rs39.08bn from Rs38.40bn.

This wide gap between top-line growth and cost containment allowed gross profit to more than triple to Rs5.63bn from Rs1.78bn.

Operating expenses, however, saw sharp increases across the board. Distribution and selling expenses edged up 3.82% to Rs108.20m, while administrative and general expenses rose 15.78% to Rs471.58m. Other operating expenses more than quintupled to Rs524.73m from Rs103.13m.

Despite these elevated costs, the strong gross profit performance propelled operating profit to nearly fourfold growth, reaching Rs4.52bn compared to Rs1.16bn in the same period last year.

Below the operating line, other income delivered a standout contribution, surging more than eightfold to Rs3.04bn from Rs374.48m. This was partially offset by a 56.95% rise in finance costs to Rs478.34m from Rs304.77m.

Combined, these factors pushed profit before taxation and levies to more than fivefold growth, reaching Rs7.08bn against Rs1.23bn last year.

Levies remained a negligible, nominal charge during the period, easing further to leave profit before taxation at Rs7.08bn compared to Rs1.23bn previously.

The taxation charge also climbed sharply, rising more than fivefold to Rs2.77bn from Rs490.62m, reflecting the substantially higher pre-tax earnings.

Even with this heavier tax burden, the scale of operating and other income gains was more than sufficient to drive the bottom line, with profit after taxation ultimately expanding more than fivefold to Rs4.31bn.

The company's board has also approved an interim cash dividend of Rs1.50 per share for the quarter ended June 30, 2026.

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