Lucky Core Industries Limited · PSX:LCI
Lucky Core Industries — FY2024 Earnings Presentation
24 slides from Lucky Core Industries's earnings presentation, Aug 29, 2024
Slide 1: Corporate Briefing Session
CORPORATE BRIEFING SESSION This is to inform you that the Corporate Briefing Session (CBS) of Lucky Core Industries Limited (the “Company”) will be held on Thursday, August 29, 2024 at 4:00 pm at the Pakistan Stock Exchange Auditorium, Karachi and through video-link facility, to brief the shareholde
Slide 2: Corporate Briefing Session invitation
Corporate Briefing Session <RXDUHFRUGLDOO\LQYLWHGWRWKH&RUSRUDWH%ULHǘQJ6HVVLRQRI/XFN\&RUH ,QGXVWULHV/LPLWHGZKHUHLQWKH&RPSDQ\ūV6HQLRU0DQDJHPHQWVKDOOGLVFXVV WKHFRPSDQ\ūVǘQDQFLDOSHUIRUPDQFHDQGRXWORRN Date: Location: Registration: Presentation: To join via Zoom, please click here. Meeting ID: 899 2209 94
Slide 3: Investor Briefing FY 2023-24
Investor Briefing FY 2023-24
Slide 4: Our Businesses
Soda Ash Business Polyester Business Pharmaceuticals Business From baking soda, Fabric made from our Our detergents to glass, our Soda Ash has diversified applications. Polyester Fibre has applications in fashion, design, and interiors. Manufacturing, marketing and distribution leading pharmaceutica
Slide 5: Serving Multiple Industries
Serving Multiple Industries A diversified portfolio of essential products that is at the ‘core’ of almost every local industry. Industries Catered • Textile • Paints • Appliances • Construction • Automobile • Footwear • Oil/ Petroleum • Food & Beverage • Metal Engineering/ Cleaning • Pharmaceuticals
Slide 6: FY 2023-24 – At a Glance
FY 2023-24 – At a Glance Unconsolidated Financing/ Impact Financials Returns Revenue Mkt Cap | Debt Total Employees PKR 120.5 B 10% 85.8 B | 0.4 B 2,200+ EBIT PKR 17.2 B 17% Current Ratio Safe Man Hours 1.5x > 46 M PAT (Exc NutriC0) PKR 11.1 B 41% ROCE Exchequer EPS 48% Contribution PKR 120.6 41% PK
Slide 7: A Cut Above the Rest
A Cut Above the Rest Operating in Essentials Competitive Advantage Our People Robust Governance Structure Operating in 5 business Market leader in Soda A strong team, dedicated segments that are at the Ash and a leading player to Enriching Lives and “Core” of multiple local in other business Complia
Slide 8: Strong Capital Structure
Strong Capital Structure Healthy payout and low gearing ratios, whilst investing heavily in growth/expansion projects. PKR’ m Ratios FY'20 FY'21 FY'22 FY'23 FY'24 ROCE 20% 29% 35% 45% 48% Healthy PAT 3,096 5,959 6,249 13,772 * 11,140 Returns Payout Ratio 47% 62% 52% 50% 50% Net Debt (Net of Short Te
Slide 9: Company Performance FY'24
Company Performance FY’24
Slide 10: Financial Performance by Business – Standalone
Financial Performance by Business – Standalone Resilient performance despite challenging economic conditions. Soda Ash Polyester Pharmaceuticals Chemicals Animal Health LCI 47,565 15% 40,285 0% 12,212 33% 13,704 17% 6,776 1% 120,460 10% NSI Vs. 41,417 Vs. 40,452 Vs. 9,159 Vs. 11,710 Vs. 6.844 Vs. 10
Slide 11: Historical Performance post YBG Acquisition
Historical Performance post YBG Acquisition Continuously outperforming the market delivering a PAT CAGR of 21% over the last 10 years. 13,772 11,140 7,889 5,959 6,249 2,843 3,296 3,060 3,096 1,702 2,126 2,305 974 688 CY 2012 2013 (6m) FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24
Slide 12: Segmental Performance FY'24
Segmental Performance FY’24
Slide 13: Soda Ash Business Revenue
Soda Ash Net Sales FY’24 47.56 bln (15% vs SPLY) EBIT FY’24 10.03 bln (31% vs SPLY) Sales Volume 549k tons (13% vs SPLY) Production Volume 545k tons (6% vs SPLY) Business 47.56 • Production capacity of 560 KTPA 10.03 41.42 7.63 Revenue 25.06 EBIT 4.48 • 210 KTPA capacity added in the last 16.54 15.6
Slide 14: Capacity Expansion
Capacity Expansion A mouth of the mine manufacturing facility with access to major raw materials. 350,000 TPA Expansion Completed 1 Expansion Completed Expansion Completed 500 KTPA 60KTPA & CFB-5 75KTPA 75KTPA PKR 7bn PKR 5.5bln PKR 3.6bln 2018-19 Approved 2021-22 FY 2012 2 CFB-5 July’22 *60KTPA Mar
Slide 15: Polyester Business Revenue
Polyester Net Sales FY’24 EBIT FY’24 Sales Volume 102k tons (10% vs SPLY) Production Volume 112k tons (11% vs SPLY) 40.28 bln (0.4% vs SPLY) 1.83 bln (43% vs SPLY) Business • Production capacity of 122k tonnes. 40.45 40.28 36.68 3.81 3.19 Revenue 23.63 24.30 2.72 EBIT 19.89 1.83 • Recycled 267 milli
Slide 16: Pharmaceuticals Business Revenue
Pharmaceuticals Net Sales FY’24 EBIT FY’24 EBITDA FY’24 Business 12.21 bln (33% vs SPLY) 2.30 bln (130% vs SPLY) 2.51 bln (114% vs SPLY) • Business’s flagship brand Mucaine and Citralka achieved the PKR 1 12.21 Bln annual sales landmark on 8.89 9.16 2.30 IQVIA. 7.81 Revenue 6.32 6.14 EBIT 1.25 1.00
Slide 17: Pharmaceuticals Business Overview
Business Overview Key Brands PRIMARY CARE SPECIALITY CARE • Zestril • Tazopip SPECIALITY • Tenormin • Fortexone • Inderal • Merpen CARE • Citralka • Trihemic • Hycortisone • Cefcin • Nilstat • Corinef Gynecology Pediatrics Nutraceuticals Cardiology Cardio Metabolic Oncology • Lederplex • Zoladex Res
Slide 18: Animal Health Business Revenue
Animal Health Net Sales FY’24 EBIT FY’24 EBITDA FY’24 0.88 bln (5% vs SPLY) Business 6.78 bln (1% vs SPLY) 0.96 bln (5% vs SPLY) • Livestock market size ~ PKR 36.5 Bln with LCI capturing 13% market share. 6.84 6.78 0.93 0.88 5.62 5.11 Revenue 0.76 • Poultry market size approx. PKR 19.6 EBIT 3.73 3.9
Slide 19: Chemicals & Agri Sciences Business Revenue
Chemicals & Agri Net Sales FY’24 EBIT FY’24 EBITDA FY’24 Sciences Business 13.70 bln (17% vs SPLY) 2.11 bln (11% vs SPLY) 2.24 bln (12% vs SPLY) • Representing renowned global companies like Wanhua, Diversey, 2.11 Evonik, Venator, Rio Tinto. 13.70 1.89 11.71 10.81 1.46 Revenue 8.11 8.02 8.70 EBIT 0.
Slide 20: Opportunities & Challenges
Opportunities & Challenges & LCl #JourneyOfEnrichingLives
Slide 21: Opportunities & Challenges
Opportunities & Challenges Slowdown in downstream demand at the back of 1 1 Capacity expansion in Soda Ash inflationary pressures Higher energy costs 2 2 Asset acquisition from Pfizer Mitigation Challenges Strategies Strain on export margins 3 3 Expanding footprint in export market Higher interest c
Slide 22: Growth Journey Continues
Growth Journey Continues We continue to invest for the future Asset acquisition Soda Ash Expansion New Animal Health Float Glass Joint- from Pfizer Entities Projects Facility Venture Installation of boiler in SA. Setting up of a green field Greenfield facility for veterinary medicine manufacturing o
Slide 23: Expansion Projects Since YBG Acquisition
Expansion Projects Since YBG Acquisition LCI PEPG SA PH GCA AH Coal fired boilers Seeds Processing Plant Manufacturing facility NutriCo Energy projects PKR 7.5 bln Nutraceutical PKR 9 mln PKR 15 mln PKR 1.9 bln PKR 3.1 bln Manufacturing facility 2013 2015 DA Expansion PKR 61 m rPET project PKR 1.1 b
Slide 24: Q&A Session
Q&A Session