Karachi: Lotte Chemical Pakistan Limited announced its audited financial results for the year ending December 31, 2024, revealing a substantial decline in its profit margins. According to the financial report approved by the Board of Directors on February 13, 2025, the company experienced a drop in profit after taxation to 2.64 billion rupees, compared to 5.08 billion rupees in the previous year.
The meeting, held at the company’s headquarters in Karachi, concluded with no recommendations for cash dividends, bonus shares, right shares, or any other corporate actions for the fiscal year 2024. The financial results have been attached as annexures, including statements of profit or loss, financial position, changes in equity, and cash flows.
Revenue from contracts with customers increased to 109.30 billion rupees in 2024 from 81.62 billion rupees in 2023, marking a notable rise in sales. However, the cost of sales also surged to 104.11 billion rupees, up from 71.37 billion rupees the previous year, leading to a significant reduction in gross profit. The gross profit for 2024 stood at 5.19 billion rupees, a steep drop from 10.24 billion rupees in 2023.
Operating profit also saw a decline, registering at 3.86 billion rupees compared to 8.48 billion rupees in the previous year. Despite a decrease in other operating expenses from 926.80 million rupees in 2023 to 333.69 million rupees in 2024, the company’s operating profit was adversely affected by reduced other income, which fell to 1.20 billion rupees from 2.57 billion rupees.
Finance costs decreased significantly to 730.82 million rupees from 1.54 billion rupees, contributing positively to the company’s bottom line. The profit before taxation and levies stood at 4.33 billion rupees, down from 9.51 billion rupees in 2023, reflecting the overall financial strain experienced by the company.
According to information available from the Pakistan Stock Exchange (PSX), the company’s earnings per share (EPS) dropped to 1.75 rupees from 3.35 rupees in the previous fiscal year. This decline in EPS underscores the challenges faced by Lotte Chemical Pakistan Limited in maintaining its profitability amidst rising operational costs.
The company’s Annual General Meeting (AGM) is scheduled for April 17, 2025, in Karachi, and the share transfer books will be closed from April 10 to April 17, 2025. The annual financial statements, forming part of the company’s annual report, will be transmitted through PUCARS at least 21 days before the AGM.
In terms of cash flows, Lotte Chemical reported a net cash inflow from operating activities of 13.51 billion rupees, a significant improvement from a cash outflow of 4.49 billion rupees in the previous year. However, net cash used in investing activities amounted to 1.56 billion rupees, compared to a net cash inflow of 2.18 billion rupees in 2023. Financing activities led to a net cash outflow of 8.48 billion rupees, marking a rise from 5.71 billion rupees in the prior year.
As of December 31, 2024, the company’s cash and cash equivalents stood at 9.25 billion rupees, an increase from 5.77 billion rupees at the end of 2023. Despite this liquidity improvement, the overall financial results indicate a challenging year for Lotte Chemical Pakistan Limited, with the company facing mounting pressures from increased production costs and reduced profitability.