Karachi: Lucky Core Industries has released its annual financial report for the fiscal year ended June 30, 2024, showcasing a notable increase in financial performance and strategic expansions despite a challenging economic environment. The report adheres to Section 227 of the Companies Act, 2017, and the Listed Companies (Code of Corporate Governance) Regulations 2019.
According to information available from the Pakistan Stock Exchange (PSX), the company's net turnover reached PKR 120.46 billion, a 10% increase from the previous year, largely driven by enhanced production capacities and elevated export volumes of Soda Ash. The Pharmaceuticals, Chemical and Agri Sciences, and Soda Ash sectors experienced growths of 33%, 17%, and 15% respectively, while the Animal Health and Polyester businesses maintained their performance levels from the prior year.
The operating result for FY 2024 was PKR 17.15 billion, up 17% from the previous year, with significant contributions from the Pharmaceuticals and Soda Ash divisions, which saw increases of 130% and 31%, respectively. Despite a challenging year marked by high inflation and increased energy costs, which rose due to global economic uncertainties and local monetary policies, the company managed to improve margins through strategic pricing and cost efficiencies.
Profit after Tax (PAT) was reported at PKR 11.14 billion, down 19% from the previous year, largely impacted by the lack of a one-off gain seen in FY 2023 from divestment activities. Excluding this factor, adjusted PAT would have shown a significant improvement of 41% over the prior year, indicative of the underlying strength of the company’s operations.
The Board of Directors recommended a final cash dividend of PKR 33 per share, bringing the total annual dividend to PKR 60 per share, with a payout ratio of 49.7%, pending approval at the forthcoming Annual General Meeting.
Strategically, the company finalized asset purchase agreements with Pfizer Pakistan Limited and Pfizer Inc. on May 17, 2024, for a key manufacturing facility, which marks a significant step in Lucky Core Industries' expansion into the pharmaceutical sector. Additionally, the board approved a capacity expansion at the Soda Ash plant in Khewra, which will increase the total production capacity to 760,000 tonnes per annum.
Further investments included a commitment to a joint venture for a float glass manufacturing facility, although economic uncertainties have delayed its operational start. The company also faced setbacks with its venture into the chemical sector, terminating a significant share purchase agreement with Lotte Chemicals Corporation due to unmet conditions.
Looking ahead, Lucky Core Industries remains optimistic about its future prospects, citing a global economic growth projection of 3.2% in 2025 and anticipated policy adjustments that could favor business operations. The company continues to adapt its strategies to navigate the fluctuating economic landscape effectively, ensuring sustainability and growth in its diverse business portfolio.