Lucky Core Industries Limited reported earnings per share (EPS) of PKR 120.62 in FY24, compared to PKR 149.12 in FY23. In 1QFY25, the company posted an EPS of PKR 28.10, slightly higher than PKR 27.21 in the same period last year. The polyester and pharmaceutical segments performed well during the year, driving improved operating performance. In the soda ash segment, both local and export volumes remained subdued.
Export pricing faced challenges due to increased product availability from China. In the polyester segment, the key driver of profitability growth was higher international freight costs, which led to an increase in product prices. On September 6th, the company completed the acquisition of Pfizer’s portfolio, contributing PKR 3.2 billion in revenue by the year-end. Management expects this portfolio to generate approximately PKR 8-9 billion in revenue next year. In China, soda ash demand declined due to reduced glass manufacturing for solar applications, negatively impacting product prices. Management anticipates continued weakness in this segment.
Within the pharmaceutical sector, 65% of the portfolio consists of non-essential products, while 35% comprises essential drugs. However, nearly all Pfizer products fall under the essential category.
The company plans to install a new boiler by year-end, offering flexibility to use biomass, local coal, and imported coal, which will enhance power efficiency. Management does not foresee any major capital expenditure (Capex) requirements for the current year. The boiler project is 50% complete and is expected to be finalized within the year. Going forward, management expects strong performance in the pharmaceutical and polyester segments.
They also intend to maintain their dividend payout policy. Additionally, the company is setting up a veterinary facility in Sheikhupura. The soda ash expansion is currently in the design phase, which will take approximately one year, after which management will decide on the next steps.
Important Disclosures
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