Lotte Chemical sees 50% drop in profit in 2023, pays Rs1 dividend

February 21, 2024 (MLN): Lotte Chemical Pakistan Limited (PSX: LOTCHEM) reported a net income of Rs5.08 billion [EPS: Rs3.35] in 2023, a 49.8% decrease from Rs10.12bn [EPS: Rs6.68] in the previous year.

Along with the results, the company announced a final cash dividend of Rs1 per share i.e. 10%.

Going by the results made available by the company on the local bourse, LOTCHEM's top line marked a decline of 18.60% YoY to Rs81.62bn as compared to Rs100.27bn in SPLY.

The cost of sales also fell by 13.42% YoY but was not enough to offset the sales decline, which worsened the gross profit by 42.52% YoY to Rs10.24bn in 2023.

The gross margins worsened to 12.55% as compared to 17.78% in SPLY.

During the review period, other income expanded by 39.46% YoY to stand at Rs2.57bn as compared to Rs1.84bn in SPLY.

On the expense side, the company observed an increase in distribution and selling expenses by 15.40% YoY while other expenses fell by 22.31% YoY to clock in at Rs182.68m and Rs926.8m respectively during the review period.

The company’s finance costs deflated by 21.20% YoY and stood at Rs1.54bn as compared to Rs1.95bn in SPLY.

On the tax front, the company paid a lower tax worth Rs4.43bn against the Rs5.64bn paid in the corresponding period of last year, depicting a decrease of 21.43% YoY.

Amount in thousand except for EPS

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