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Lotte Chemical Pakistan EPS clocked in at PKR 1.76 in 9MCY24

Lotte Chemical Pakistan Limited (LOTCHEM) has released its financial results for 9MCY24, reporting a profit after tax (PAT) of PKR 2,662mn (EPS: PKR 1.76). This marks a 45% YoY decline compared to the SPLY, which had a PAT of PKR 4,840mn (EPS: PKR 3.20). In 3QCY24, earnings saw a significant drop of 75% YoY, reaching PKR 495mn (EPS: PKR 0.33).

Result Highlights       

  • Net sales for 9MCY24 rose by 43% YoY to PKR 89.0bn, largely due to a rebound in sales volumes. The prior year’s sales were impacted by a temporary shutdown of LOTCHEM’s plant from March 15, 2023, to April 30, 2023, caused by raw material shortages stemming from import restrictions.
  • In 3QCY24, sales grew 4% YoY but declined 23% QoQ, with the QoQ drop mainly attributed to lower volumetric sales.
  • Gross margins for 9MCY24 narrowed significantly to 5.7%, compared to 15.9% in the SPLY. In 3QCY24, gross margins decreased by 10.2pps YoY, landing at 4.2%, driven by a sharp increase in gas prices.
  • Other income shrunk by 61% YoY to PKR 274mn during 3QCY24, driven by lower income earned on declining short-term investments.
  • Finance cost contracted by 60% YoY to PKR 187mn during the outgoing quarter due to a decline in interest rates.
Courtesy – AHL Research

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