Lotte Chemical’s profit plunges by 40% YoY in 9MCY23

October 12, 2023 (MLN): Lotte Chemical Pakistan Limited (PSX: LOTCHEM) experienced a notable 40.29% decrease in profitability year-over-year, with its profit after tax amounting to Rs4.84 billion [EPS: Rs3.2] in 9MCY23.

This marks a substantial decline from the the same period last year (SPLY) when the company recorded a profit of Rs8.11bn [EPS: Rs5.35] 

Going by the results made available by the company on the PSX, the company's top line fell by 21.86% YoY to Rs62.14bn as compared to Rs79.51bn in SPLY.

The cost of sales also fell by 19.20% YoY but was lesser than proportionate to the sales decline, which worsened the gross profit by 33.45% YoY to Rs9.86bn in 9MCY23.

During the review period, other income rose by 31.81% YoY to stand at Rs1.88bn in 9MCY23 as compared to Rs1.43bn in SPLY.

On the expense side, the company observed an increase in Distribution and selling expenses by 10.53% YoY while other expenses fell by 29.67% YoY to clock in at Rs125.59m and Rs691.4m respectively during the review period.

The company’s finance costs shrank by 24% YoY and stood at Rs1.36bn as compared to Rs1.79bn in 9MCY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs4.25bn against the Rs4.82bn paid in the corresponding period of last year, depicting a fall of 11.75% YoY.

Amount in thousand except for EPS

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