February 10, 2022 (MLN): Engro Fertilizers Limited (PSX: EFERT) has settled the year 2021 in the green zone wherein the fertilizer giant witnessed an increase in its profitability by 16.32% YoY to clock in at Rs21 billion (EPS: Rs15.80) compared to Rs18.13bn (EPS: Rs13.58) in CY20, the company filing on PSX showed today.
In conjunction with the results, the company also announced an interim cash dividend for the year at Rs5 per share i.e., 50%. This is in addition to interim dividends already paid at Rs11.50 per share i.e., 115%.
The improvement in the company’s earnings was emanated from a 12% increase in Urea offtakes and a 6% increase in its offtakes of overall product mix.
The top-line of the company registered a growth of 25% YoY to stand at Rs132.36bn in CY21. Subsequently, the margins of the company moved up to 33% from 32% during CY20 despite the higher gas rate charged to its Enven plant after the ending of the concessionary gas sale agreement in July’21.
Selling & distribution expenses and admin expenses remained stagnant at Rs8.53bn and Rs1.9bn, respectively.
Other income of the company has also supported the bottom line as it has increased to Rs1.8bn due to higher interest rates offered in CY21. Despite the cost of borrowing going higher, the financial cost has plunged by 50.4% in CY21 from CY20 because of loan repayments, a report by Darson Securities noted.
On the taxation front, the company paid Rs8.8bn in CY21, more than two times higher than the tax paid in CY20.
In addition, the company also booked a loss on the re-measurement of GIDC provision amounting to Rs1.3bn in CY21.
|
Consolidated Financial Results for the year ended December 31, 2021 (Rupees'000) |
|||
|---|---|---|---|
|
Dec-21 |
Dec-20 |
% Change |
|
|
Net sales |
132,363,138 |
105,846,314 |
25.052 |
|
Cost of sales |
(88,288,978) |
(71,591,626) |
23.323 |
|
Gross profit |
44,074,160 |
34,254,688 |
28.666 |
|
Selling and distribution expenses |
(8,529,610) |
8,456,799) |
0.861 |
|
Administrative expenses |
(1,900,412) |
(1,918,598) |
-0.948 |
|
Other income |
1,790,398 |
1,667,110 |
7.395 |
|
Other operating expenses |
(2,641,412) |
(1,894,116) |
39.454 |
|
Finance cost |
(1,602,197) |
(3,236,285) |
-50.493 |
|
Re-measurement loss in GIDC & Loss allowance on subsidy |
(1,300,682) |
882,477 |
– |
|
Profit before taxation |
29,890,245 |
21,298,477 |
40.340 |
|
Taxation |
(8,797,588) |
(3,165,130) |
177.953 |
|
Profit for the period |
21,092,657 |
18,133,347 |
16.320 |
|
Earnings per share – basic and diluted |
15.80 |
13.58 |
16.348 |
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