Lotte Chemical profit jumps over four times

August 21, 2024 (MLN): Lotte Chemical Pakistan Limited (PSX: LOTCHEM) recorded a significant increase of 307.7% in its profits during the second quarter of 2024 despite a fall in gross margins.

The company posted after-tax profit of Rs1.27 billion [EPS: Rs0.84] during the three months ending June 2024, compared to a profit of Rs311.37 million [EPS: Rs0.21] in the same period last year (SPLY).

Going by the results, the company's sales rose 95.4% to Rs32.1bn as compared to Rs16.43bn in SPLY.

The cost of sales also rose by 106.5% but was lesser than proportionate to sales rise, which improved the gross profit by 15.0% YoY to Rs2.3bn in Q2 2024.

The gross margins, however, fell to 7.2% as compared to 12.2% in SPLY.

During the period under review, other income marked a decline of 39.0% to stand at Rs365.21m in Q2 2024 as compared to Rs598.35m in SPLY.

On the expense side, the company's administrative expenses rose 10.6% YoY to Rs178.62m, selling and distribution expenses rose 15.4% YoY to Rs48.98m, and other operating expenses fell 2.5% YoY to Rs156.79m.

The company’s finance cost inflated by 47.8% and stood at Rs206.32m as compared to Rs139.61m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs805.32m against the Rs1.78bn paid in the corresponding period of last year, depicting a fall of 54.8%.

Amount in thousand except for EPS

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