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

LOTCHEM struggles with shrinking margins
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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.

Unconsolidated (un-audited) Financial Results for year ended 31 December, 2023 (Rupees in '000)
  Dec 23 Dec 22 % Change
Sales 81,619,405 100,265,555 -18.60%
Cost of sales (71,374,835) (82,441,344) -13.42%
Gross Profit 10,244,570 17,824,211 -42.52%
Distribution and selling expenses (182,683) (158,299) 15.40%
Administrative and general expenses (654,389) (602,534) 8.61%
Other Income 2,566,973 1,840,697 39.46%
Other operating expenses (926,799) (1,192,900) -22.31%
Finance cost (1,539,605) (1,953,833) -21.20%
Profit before taxation 9,508,067 15,757,342 -39.66%
Taxation (4,430,413) (5,638,871) -21.43%
Net profit for the period 5,077,654 10,118,471 -49.82%
Basic earnings/ (loss) per share 3.35 6.68

Amount in thousand except for EPS

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Posted on: 2024-02-21T11:49:04+05:00