Lucky Core reports subdued earnings growth

October 28, 2024 (MLN): Lucky Core Industries Limited (PSX: LCI) posted a paltry growth in its earnings during the first quarter of FY25 as the business operations continued to face macroeconomic challenges.

The company recorded a profit after tax of Rs2.6 billion [EPS: Rs28.1] during the quarter ending September 2024, up 3.3% from the profit of Rs2.51bn [EPS: Rs27.21] in the same period last year (SPLY).

PAT has been negatively impacted by higher tax incidence following changes in the Federal Budget FY 2024-25 whereby exports have been reclassified under the Normal Tax Regime as opposed to a Fixed Tax Regime in the SPLY, it said in  stock filing Monday.

The company's business operations continued to face macroeconomic challenges on account of higher cost of doing business, an elevated tax incidence, and high interest rates, it added.

The prolonged monetary tightening measures have negatively impacted the consumers' purchasing power resulting in a significant demand compression across all segments of the economy, the company said.

"The company navigated through these challenges by consistent focus on portfolio diversification, effective margin management and operational efficiencies," it said.

Amount in thousand except for EPS

On a consolidated basis, the net turnover for the quarter under review clocked in at Rs30.73bn, which is higher by 6% over the same period last year (SPLY).

The operating result was recorded at Rs4.24bn, 3% higher compared to the SPLY.

Profit After Tax (PAT) for the quarter rose 3% to Rs2.62bn and Earnings Per Share (EPS) attributed to the owners of the holding company was Rs28.41.

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