Engro Corporation Limited (PSX: ENGRO) has announced its financial results for the first nine months of the calendar year 2024, reporting a consolidated profit after tax of Rs. 11.983 billion (EPS: Rs. 22.33), marking a 48% decline year-on-year. For the third quarter, consolidated earnings were Rs. 5.722 billion (EPS: Rs. 10.66), a 53% drop compared to the same period last year.
Despite the profit decline, Engro declared a dividend of Rs. 5.00 per share for the third quarter, totaling Rs. 24.00 per share for the nine months.
Revenue from continued operations increased by 12% to Rs. 279 billion, up from Rs. 250 billion in the same period of 2023.
In the fertilizer sector, Engro Fertilizers Limited (PSX: EFERT) reported earnings of Rs. 8,554 million (EPS: Rs. 6.41), an 11% decrease year-on-year for the third quarter. Arif Habib Limited attributes this decline to a 33% and 14% year-on-year drop in urea and DAP offtake, respectively, along with higher finance costs due to increased short-term borrowings.
Engro Polymer & Chemicals Limited (EPCL) posted a loss of Rs. 698 million (LPS: Rs. 0.77), compared to a net profit of Rs. 2,642 million (EPS: Rs. 2.91) in the previous year, primarily due to higher gas prices and lower PVC margins.
Conversely, FrieslandCampina Engro Pakistan Limited (FCEPL) saw its earnings triple year-on-year to Rs. 766 million (EPS: Rs. 1.00), driven by a 190 basis point increase in gross margins to 15.40% amid higher dairy product sales.
Engro’s other income rose by 53% year-on-year in the third quarter, attributed to increased income from cash and cash balances. However, the company’s finance costs surged by 41% due to higher short-term borrowings.
The company recorded a gain of Rs. 464 million on subsidy receivables from the government in the third quarter, compared to Rs. 1 million in the same period last year. Effective taxation was booked at 39.95% for the third quarter, slightly down from 40.54% in the previous year.
As of Tuesday, Engro’s stock was trading at Rs. 310.71, down 1.47% or Rs. 4.63, with 345,206 shares changing hands.
