LOTCHEM's profit drops by nearly half to Rs2.85bn in 1HCY23

August 11, 2023 (MLN): Lotte Chemical Pakistan Limited (PSX: LOTCHEM) 's profitability plunged by 47.17% YoY, clocking in its profit after tax at Rs2.85 billion [EPS: Rs1.88] as compared to a profit of Rs5.4bn [EPS: Rs3.57] in the same period last year (SPLY).

Going by the results, the company's top line deflated by 22.85% YoY to Rs38.54bn as compared to Rs49.96bn in SPLY.

The cost of sales fell by 19.65% YoY but was not enough to offset the sales decline, which worsened the gross profit by 35.65% YoY to Rs6.44bn in 1HCY23.

However, during the review period, other income grew by 41.95% YoY to stand at Rs1.18bn in 1HCY23 as compared to Rs833.74 million in SPLY.

On the expense side, the company observed a rise in Distribution and selling expenses by 8.49% YoY and other expenses by 31.39% YoY to clock in at Rs313.07m and Rs458.37m respectively during the review period.

The company’s finance costs declined by 10.28% YoY and stood at Rs895.12m as compared to Rs997.65m in 1HCY23.

On the tax front, the company paid a lower tax worth Rs3.02bn against the Rs3.45bn paid in the corresponding period of last year, depicting a fall of 12.32% YoY.

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