Lucky Core Industries Reports 23% Earnings Growth Amid Sector Variances

Karachi: Lucky Core Industries Limited (LCI) reported a significant 23% year-over-year growth in its standalone earnings for the first half of the fiscal year 2025, reaching PkR6.2 billion. This increase, primarily attributed to reduced finance costs due to declining interest rates, was discussed during the company’s analyst briefing.

According to a statement by AKD Securities Limited, the Soda Ash segment experienced a 15% drop in revenue, amounting to PkR40.2 billion, due to a 19% decline in volume and a 36% decrease in export offtakes. The local sales also saw a 12% reduction. Despite these declines, gross margins remained stable owing to a higher proportion of local sales.

Conversely, the Polyester segment showed a 13% revenue increase to PkR20.2 billion, with gross margins benefiting from rising international prices and higher freight costs. The Pharmaceuticals segment witnessed an 80% surge in revenue, reaching PkR10.4 billion, following LCI’s acquisition of Pfizer, finalized in September 2024.

The Chemical and Agri Sciences and Animal Health segments faced revenue declines of 6% and 14%, respectively. The company also noted an increase in Other income due to adjustments in accounting practices.

LCI’s Soda Ash production is predominantly coal-powered, with a new boiler in development to incorporate biomass. The Polyester segment utilizes a mix of gas and furnace oil for energy. The company is also expanding its veterinary medicine facility and Soda Ash capacity, with the latter’s timeline yet to be determined.

Looking forward, LCI anticipates sluggish growth in the Soda Ash segment until local demand rebounds, with flat expectations for the Chemical and Agri and Veterinary segments. However, the company is optimistic about the prospects for its Pharmaceutical and Polyester businesses, supported by the Pfizer acquisition and rising textile exports.

The post Lucky Core Industries Reports 23% Earnings Growth Amid Sector Variances appeared first on Pakistan Business News.