LCI 4QFY24 Earnings Up 11%, Announces Rs33/Share Dividend

Staff Report: Lucky Core Industries (LCI) announced its 4QFY24 results on Tuesday, recording consolidated earnings of Rs3.2bn (EPS of Rs34.8), up by 11% QoQ. The result was in line with expectations. Alongside the results, the company announced a second interim cash dividend of Rs33/share in 4QFY24, taking the FY24 dividend to Rs60/share.

LCI’s earnings increased by 11% QoQ due to better gross margins, higher other income, and a lower effective tax rate. The company recorded gross margins of 24% in 4QFY24, compared to 23% in 3QFY24 and 22% in 4QFY23, despite economic headwinds. The effective tax rate was 27% in 4QFY24, down from 35% in 3QFY24. This lower rate is attributed to higher other income and deferred tax liabilities.Bank Alfalah Reports 53% YoY Growth in 2Q2024 EPS, Announces Rs2 Dividend

Other income in 4QFY24 increased by 20% QoQ and 3% YoY to Rs1.06bn. It is notable that LCI had posted losses of Rs4.4bn (LPS of Rs47.6) in 4QFY23 due to non-recurring items related to the partial divestment in Nutrico Morinaga. The operating profit of the company stood at Rs5.27bn (+2.1% YoY/QoQ) in 4QFY24.

LCI’s consolidated earnings in FY24 were recorded at Rs11.15bn (EPS Rs120.73), down by 37% YoY. This decrease was mainly due to a one-off gain from the partial divestment in Nutrico Morinaga recorded in FY23. Excluding the one-off impact, EPS would have been higher by 41% YoY in FY24. Net sales increased by 10% YoY to Rs120.6bn, and gross margins in FY24 were recorded at 22.4% compared to 20.5% in FY23.