August 04, 2026 (MLN): Lucky Core Industries Limited (PSX: LCI) recorded a 17% decline in its consolidated net profit for the year ended June 30, 2026, with profit for the year falling to Rs9.75bn from Rs11.76bn in the corresponding period last year.
Showing this softer bottom-line, the company's earnings per share (EPS) contracted to Rs21.11 from Rs25.46 in FY25.
The Board of Directors has recommended a final cash dividend of Rs5.25 per share (262.5%) for the financial year ended June 30, 2026.
This is in addition to the interim cash dividend of Rs5.25 per share (262.5%) already paid, bringing the total cash dividend for FY26 to Rs10.50 per share.
The top-line came under pressure, with net turnover declining 5% year-on-year to Rs113.38bn from Rs119.94bn in the prior year.
Cost of sales fell at a slower pace of 4% to Rs88.79bn, causing gross profit to contract by 10% to Rs24.59bn from Rs27.45bn — reflecting margin compression as costs did not fall in proportion to revenue.
On the expenditure side, selling and distribution expenses were trimmed by 3% to Rs6.93bn, while administration and general expenses rose sharply by 30% to Rs2.91bn, partially offsetting the distribution savings.
These combined to pull operating profit down 18% to Rs14.74bn from Rs18.03bn.
Below the operating line, other charges declined modestly by 6% to Rs836.26m.
Finance costs rose 13% to Rs2.49bn, and exchange loss edged up 13% to Rs63.51m. Notably, no gain on bargain purchase was recorded in the current year, against Rs292.56m in FY25.
The below-operating subtotal of charges rose 19% to Rs3.39bn from Rs2.86bn. Other income grew marginally by 4% to Rs3.57bn from Rs3.44bn, providing a partial offset. Share of profit from associate surged to Rs289.85m from Rs19.27m a fifteenfold increase adding a meaningful contribution.
These combined factors brought profit before final taxes and income tax down 18% to Rs15.21bn from Rs18.63bn. Final taxes declined 26% to Rs10.53m, keeping profit before income tax at Rs15.20bn, down 18%.
On the taxation front, current tax rose 5% to Rs5.30bn, while deferred tax collapsed by 92% to Rs148.90m from Rs1.83bn — resulting in total income tax declining 21% to Rs5.45bn from Rs6.86bn.
This lower combined tax burden provided a meaningful cushion, limiting the overall profit decline to 17%.
|
CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED JUNE 30, 2026 (Rs'000) |
|||
|
Description |
2026 |
2025 |
Change (%) |
|
Net turnover |
113,379,692 |
119,940,714 |
-5.47% |
|
Cost of sales |
(88,790,596) |
(92,487,496) |
-4.00% |
|
Gross profit |
24,589,096 |
27,453,218 |
-10.43% |
|
Selling and distribution expenses |
(6,932,511) |
(7,175,071) |
-3.38% |
|
Administration and general expenses |
(2,913,025) |
(2,247,567) |
29.61% |
|
Operating profit |
14,743,560 |
18,030,580 |
-18.23% |
|
Other charges |
(836,259) |
(887,079) |
-5.73% |
|
Gain on bargain purchase |
- |
292,555 |
|
|
Finance costs |
(2,491,834) |
(2,210,457) |
12.73% |
|
Exchange loss |
(63,505) |
(56,087) |
13.23% |
|
(Subtotal) |
(3,391,598) |
(2,861,068) |
18.54% |
|
Other income |
3,566,999 |
3,444,424 |
3.56% |
|
Share of profit from associate |
289,849 |
19,272 |
1403.99% |
|
Profit before final taxes and income tax |
15,208,810 |
18,633,208 |
-18.38% |
|
Final taxes |
(10,525) |
(14,184) |
-25.80% |
|
Profit before income tax |
15,198,285 |
18,619,024 |
-18.37% |
|
Current |
(5,300,992) |
(5,031,591) |
5.35% |
|
Deferred |
(148,903) |
(1,830,248) |
-91.86% |
|
(Subtotal) |
(5,449,895) |
(6,861,839) |
-20.58% |
|
Profit for the year |
9,748,390 |
11,757,185 |
-17.09% |
|
Basic and diluted earnings per share (Rs) |
21.11 |
25.46 |
-17.09% |