Revenue down at Lucky Core Industries

Lucky Core Industries Limited (PSX: LCI) reported its results for the financial year ended 30 June 2025, revealing that net revenue edged down 1% year‑on‑year to Rs119.9 billion as a cooling soda‑ash market and soft textile demand offset price revisions in other divisions. Fourth‑quarter sales fell a steeper 6% YoY to Rs27.9 bn, confirming the down‑trend that gathered pace in the final months of the year.

Despite the top‑line slippage, the company protected—and even slightly widened—its profitability. Gross profit rose 2% to Rs27.45 bn, nudging the gross margin up by 50 basis points to 22.9% as management pushed through selective price rises and benefitted from lower energy tariffs at its Sheikhupura polyester plant. However, margin expansion could not fully cushion the operating line: higher other expenses and a Rs56 million exchange‑rate loss trimmed fourth‑quarter operating leverage.

For the full year profit after tax (PAT) inched up 5% to Rs11.76 bn, translating into earnings per share of Rs25.46. Yet the quarterly view tells a more sobering story: 4Q PAT dropped 12% YoY to Rs2.85 bn, while the net margin for the quarter slipped to 10.2% from 10.9% a year earlier. Declining finance costs (‑38% YoY) provided some relief, but a heavier effective tax rate of 36.9% eroded much of that benefit. The board declared a final cash dividend of Rs6.20 per share, bringing the full‑year payout to Rs13.00.