KARACHI: Lotte Chemical Pakistan Limited (PSX: LOTCHEM) reported a significant decline in profitability for the first half of fiscal year 2025. The company posted an after-tax profit of Rs741.78 million (EPS: Rs0.49), a 65.8% decrease compared to Rs2.17 billion (EPS: Rs1.43) in the same period last year.
Revenue from contracts with customers fell by 37.6%, dropping to Rs40.18 billion from Rs64.38 billion in 1HFY24. Despite a 36.4% reduction in the cost of sales to Rs38.40 billion, the decline in revenue outpaced cost savings, leading to a 55.4% drop in gross profit to Rs1.78 billion.
Operating profit decreased by 64.3% to Rs1.16 billion, while other income declined by 47.7% to Rs374.48 million. Finance costs decreased by 29% to Rs304.77 million. Profit before taxation dropped 65.2% to Rs1.23 billion, and after accounting for a 64.4% decrease in taxation to Rs490.62 million, the company reported a net profit of Rs741.78 million.
At the close of trading today, Lotte Chemical’s stock price stood at Rs21.55, down Rs0.24 or 1.10% from the previous session.
Earlier this year, Lotte Chemical Pakistan underwent a significant ownership change. The company sold its 75.01% stake to a consortium comprising AsiaPak Investments and Montage Oil for approximately $68 million. This strategic move was part of Lotte Chemical’s global restructuring efforts to streamline operations and focus on core markets. The acquisition was finalised in February 2025, marking a new chapter for Lotte Chemical Pakistan under local ownership.
