August 03, 2023 (MLN): Lucky Core Industries Limited (PSX: LCI) has disclosed its financial performance for the year ended on June 30, 2023 today as per which the company posted net profits of Rs17.772 billion, up by 2x YoY against the profits of Rs8.86bn secured in FY22.
The increase is primarily attributable to the PAT from discontinued operations of Rs10.01bn which mainly includes gain recorded on account of the sale of shares of NMPL and re-measurement of the remaining 24.5% shareholding of NMPL.
Along with the FY23 financial results, the board of directors of LCI has also announced an interim cash dividend for the period ended June 30, 2022, at Rs10 per share i.e. 330%.
This is in addition to the interim cash dividend of Rs10 per share i.e. 100% already paid.
Going by the results, the net turnover for the year under review from continuing operations clocked in at Rs109.54bn up by 25.59% as compared to Rs86.97bn in SPLY.
The cost of sales rose by 27.80% YoY but was lesser than proportionate to sales decline, which improved the gross profit by 19.27% YoY to Rs22.45bn in 4QFY23.
During the period under review, other income dropped by 20.70% YoY to stand at Rs1.76bn in FY23 as compared to Rs2.22bn in SPLY.
On the expense side, the company observed an increase in Selling and Distribution Expenses by 6.92% YoY and other expenses by 6.73% YoY to clock in at Rs5.34bn and Rs613.09m respectively during the review period.
The company’s finance costs grew by 3.52x YoY and stood at Rs2.88bn as compared to Rs817.15m in FY23, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs4.38bn against the Rs4.14bn paid in the corresponding period of last year, depicting a rise of 5.80% YoY.
During the year, LCI was severely impacted by macroeconomic challenges, including demand contraction in the downstream markets, cost-push due to the impact of higher oil prices, exchange losses due to devaluation of the PKR against the USD, business-specific import restrictions, and tax regime changes.
Additionally, monetary tightening measures by the government including a significant increase in interest rate against the SPLY also continued to impact the business and its profitability.
| Consolidated (un-audited) Financial Results for year ended 30 June, 2023 | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Sales | 109,543,700 | 86,972,171 | 25.95% |
| Cost of sales | (87,092,689) | (68,148,208) | 27.80% |
| Gross Profit | 22,451,011 | 18,823,963 | 19.27% |
| Selling and Distribution Expenses | (5,335,599) | (4,990,238) | 6.92% |
| Administrative expenses | (2,348,875) | (1,926,248) | 21.94% |
| Exchange loss | (965,876) | (545,755) | 76.98% |
| Share of loss from associate | (11,701) | – | – |
| Other Income | 1,761,950 | 2,221,909 | -20.70% |
| Other expenses | (613,086) | (574,406) | 6.73% |
| Finance cost | (2,880,132) | (817,147) | 252.46% |
| Profit before taxation from continuing operations | 12,057,692 | 12,192,078 | -1.10% |
| Taxation | (4,377,035) | (4,137,145) | 5.80% |
| Profit after taxation from continuing operations | 7,680,657 | 8,054,933 | -4.65% |
| Profit after taxation from discontinued operations | 10,092,201 | 805,089 | – |
| Profit after taxation | 17,772,858 | 8,860,022 | 100.60% |
| EPS | 190.15 | 91.66 | – |
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Posted on: 2023-08-03T12:17:06+05:00
