Lotte Chemical posts around 66% drop in half-year profit

August 21, 2025 (MLN): Lotte Chemical Pakistan Limited (PSX: LOTCHEM) recorded a sharp decline of 65.8% in its profits during the six months ended June 30, 2025.

The company posted after-tax profit of Rs741.78 million [EPS: Rs0.49] during 1HFY25, compared to Rs2.17 billion [EPS: Rs1.43] in the same period last year (SPLY).

Revenue from contracts with customers fell 37.6% to Rs40.18bn as compared to Rs64.38bn in SPLY.

The cost of sales dropped 36.4% to Rs38.40bn, but the fall in revenues outpaced cost reductions, resulting in a 55.4% decline in gross profit to Rs1.78bn.

On the expense side, distribution and selling expenses increased 6.7% YoY to Rs104.22m, administrative and general expenses rose 12.8% YoY to Rs407.29m, while other operating expenses declined 61.6% YoY to Rs103.13m.

Operating profit decreased 64.3% to Rs1.16bn compared to Rs3.26bn in SPLY.

Other income also fell 47.7% YoY to Rs374.48m, while finance costs eased 29% YoY to Rs304.77m.

As a result, profit before taxation dropped 65.2% to Rs1.23bn against Rs3.54bn in the same period last year.

On the tax front, the company paid Rs490.62m, reflecting a 64.4% decline from Rs1.38bn in SPLY.

Consequently, LOTCHEM closed the half year with a profit after tax of Rs741.78m, significantly lower than Rs2.17bn recorded in the corresponding period of last year.

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