Lucky Core Industries’ Profit Declines By 64% in 9 Months of FY24

Lucky Core Industries Limited announced its 9MFY24 financial result today where the company posted a profit after tax (PAT) of Rs. 7.9 billion, down 64 percent YoY compared to PAT of Rs. 21.9 billion during SPLY. On a quarterly basis, the profitability plummeted by 85 percent YoY, arriving at Rs. 2.9 billion in 3QFY24, which is on account of gain on partial disposal of NutriCo Morinaga (Pvt) Ltd (Rs. 8.9 billion) and a remeasurement gain on the retained interest of the same (Rs. 8.2 billion) booked in SPLY, said Arif Habib Limited in a brief review of the company’s results. During 9MFY24, net sales increased by 13 percent YoY to Rs. 91.1 billion due to higher sales across all segments and upward cost price adjustments. During 3QFY24, sales witnessed a meager uptick of 1 percent YoY. Gross margins went up by 181 bps YoY to 21.9 percent during 9MFY24 amid a revision in sales prices. During 9MFY24, LCI booked an exchange gain of Rs. 131 million compared to exchange loss of Rs. 935 million in SPLY amid a recovery in the Pak Rupee against the greenback during the period. The other income of the company increased by 3.7x YoY to Rs. 2.8 billion during 9MFY24, which is attributable to higher income from cash and cash balances. During the 3QFY24, the other income ascended by 71 percent YoY to Rs. 891 million due to the aforementioned reason. Finance costs of the company went up by 47 percent YoY to Rs. 2.7 billion during 9MFY24 owed to higher interest rates. The company booked effective taxation at 35 percent in 3QFY24 vis-à-vis 10 percent in 3QCY23. LCI posted earnings per share (EPS) of Rs. 85.93 for 9MFY24 compared to an EPS of Rs. 237.74 in 9MFY23.