Engro Fertilizers' 9MFY25 profit drops 21%

October 15, 2025 (MLN): Engro Fertilizers Limited (PSX: EFERT) reported a profit after tax of Rs14.3bn for the nine months ended September 30, 2025, down 20.6% from Rs18bn.

Earnings per share declined to Rs10.69 compared to Rs13.47 in 9MFY24.

The company gave a cash dividend of Rs4.5 per share for the period.

Net sales decreased 21.2% YoY to Rs135.5bn from Rs171.8bn, based on lower revenue generation during the period.

Cost of sales fell 27.8% to Rs91.1bn from Rs126.1bn.

Gross profit contracted 3% to Rs44.4bn against Rs45.7bn in 9MFY24. However, the gross margin improved significantly to 32.8% from 26.6% in the prior year period, indicating better cost management despite lower sales volumes.

Selling and distribution expenses rose 7.1% to Rs11.9bn, while administrative expenses increased marginally by 0.7% to Rs3.7bn.

Other income dropped significantly by 34.6% to Rs1.6bn from Rs2.4bn last year. Other operating expenses remained relatively flat, declining 0.8% to Rs2.6bn.

The company recorded a profit before taxation of Rs23.7bn, down 17.3% from an operating profit of Rs28.7bn in 9MFY24.

Finance costs increased sharply by 54.8% to Rs4.1bn from Rs2.7bn.

The company also reported a gain on subsidy receivable from the Government of Pakistan of Rs194.7 million, significantly lower than the Rs698m gain recorded in 9MFY24, representing a decline of 72.2%.

Taxation decreased 11.8% to Rs9.4bn from Rs10.7bn in the prior period.

The company concluded 9MFY25 with a net profit of Rs14.3bn, delivering a net profit margin of 10.5% in 9MFY24.

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