Islamabad: Lucky Core Industries (LCI) reported a record profit after tax of Rs11.8 billion, a 5% year-on-year increase, in its FY25 corporate briefing held today. The acquisition of Pfizer's portfolio significantly contributed to this growth, bolstering the pharmaceutical segment's performance and achieving impressive 32-35% margins. This success offset demand difficulties experienced in Soda Ash, Chemicals and Agri Sciences, and Animal Health sectors. The pharmaceutical segment generated Rs 21 billion in turnover, with Pfizer's portfolio contributing Rs 7.2 billion. This propelled LCI to become the 16th largest pharmaceutical entity among over 600 companies in Pakistan. Management anticipates a 15% price increase for non-essential pharmaceuticals, which constitute 65% of their current pharmaceutical portfolio. Pfizer's acquired portfolio is primarily non-essential.
LCI's overall operating margin reached 38%, boosted by the pharmaceutical segment's strong results. However, challenges in the Soda Ash sector persist due to lower international prices impacting exports. The company primarily uses coal (95%) in Soda Ash production and aims to improve efficiency with a new boiler incorporating biomass and a mix of local and imported coal by year-end. In the Polyester division, LCI plans to increase its solar capacity, reducing its reliance on furnace oil (currently at 48% of the energy mix) if the levy on it continues. The company expects strong performance in Pharmaceuticals and Polyester to counter the ongoing challenges in Soda Ash.
LCI will maintain its practice of distributing 50% of profits as dividends for both half-year and full-year results. While Soda Ash exports face headwinds, the firm is working to boost pharmaceutical exports. Future plans include a veterinary medicine facility in Sheikhupura, starting early next year, and a 70 KTPA Dense Ash capacity installation. The Soda Ash expansion remains in the design phase. Construction of a Greenfield Veterinary Medicine Manufacturing unit is expected to finish in Q4 2026.