Lucky Core posts record Rs11.8bn profit after Pfizer integration

KARACHI: Lucky Core Industries Limited’s (LCI) operating performance improved on the back of Pfizer portfolio integration and stronger margins in the pharmaceuticals segment.

The update came at LCI’s corporate briefing on Thursday to discuss FY25 financial results and future outlook, according to a Topline Securities report.

The pharmaceutical business recorded 32–35 per cent margins, lifting the company’s average margin to 38 per cent. However, the soda ash, chemicals, agri-sciences, and animal health divisions continued to face demand challenges.

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Management noted that 65 per cent of the current pharma portfolio is non-essential and 35 per cent essential. The acquired Pfizer portfolio is mostly non-essential, with the exception of a small product.

Annual turnover from the Pfizer portfolio stood at Rs7.2 billion out of a total Rs21 billion for the pharma segment. With this addition, LCI has become the 16th largest pharmaceutical company in Pakistan out of more than 600 firms.

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On pricing, management said an average 15 per cent increase is anticipated for non-essential medicines.

The soda ash segment relies heavily on coal, with a 95 per cent share in its energy mix. A new boiler, expected online by year-end, will use a more efficient fuel mix of biomass, local, and imported coal.

In the polyester segment, the energy mix currently consists of 48 per cent furnace oil, 4 per cent gas, and 4 per cent solar. The company plans to expand solar capacity and phase out furnace oil if the levy persists.

Management expects strong growth in pharmaceuticals and stable performance in polyester, though challenges in soda ash are likely to continue due to pricing pressures.

LCI follows its usual practice of distributing 50 per cent of profits as dividends for both half-year and full-year results.

Exports remain primarily driven by soda ash, though weaker international prices pose challenges. Efforts are underway to improve pharma exports.

Planned expansions include: a new biomass boiler, a veterinary medicine facility at Sheikhupura expected to commence early next year, a 70 KTPA dense ash capacity addition, and further soda ash expansion currently in the design stage. Construction of a Greenfield veterinary medicine manufacturing unit is also underway, with completion expected by Q4 2026.

For FY25, LCI reported its highest-ever profit after tax at Rs11.8 billion, up 5 per cent year-on-year, mainly driven by the Pfizer portfolio acquisition.