LOTCHEM: Sales increased but pressurized margin hit the bottom line

LOTTE Chemical Pakistan Limited
Financial Results: Quarter Ended March 31, 2024

Cash Dividend: Rs. 0.5 per share
EPS: Rs. 0.6 (compared to Rs. 1.68 in the first quarter of the previous year)

During this quarter, LOTCHEM's gross margin experienced a significant decline, dropping to 5% from 20% in the same period last year. Despite a robust sales growth of over 46% compared to last year's first quarter, the decline in gross margin impacted profitability.

The plummeting gross margin led to a more than 60% decrease in both gross profit and operating profit. Additionally, the higher tax rate of 39%, up by 6% from the previous year, further affected the bottom line, resulting in a 65% decrease in profit after tax to Rs. 0.89 billion.

As of yesterday, LOTCHEM closed at a market price of Rs. 18.34. It has declined more than 32% this year.

Lotte Chemical Corporation owns over 75% shares of LOTCHEM.

LOTCHEM Announcement.

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