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.
| Unconsolidated (un-audited) Financial Results for nine months ended 30 September, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Sales | 62,135,321 | 79,513,368 | -21.86% |
| Cost of sales | (52,279,191) | (64,702,374) | -19.20% |
| Gross Profit | 9,856,130 | 14,810,994 | -33.45% |
| Distribution and selling expenses | (125,590) | (113,624) | 10.53% |
| Administrative and general expenses | (469,265) | (427,765) | 9.70% |
| Other Income | 1,883,980 | 1,429,348 | 31.81% |
| Other expenses | (691,400) | (983,106) | -29.67% |
| Finance cost | (1,362,098) | (1,792,345) | -24.00% |
| Profit before taxation | 9,091,757 | 12,923,502 | -29.65% |
| Taxation | (4,251,479) | (4,817,776) | -11.75% |
| Net profit for the period | 4,840,278 | 8,105,726 | -40.29% |
| Basic earnings/ (loss) per share | 3.20 | 5.35 | – |
Amount in thousand except for EPS
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Posted on: 2023-10-12T14:57:14+05:00
