EFERT’s quarterly profit slumps by close to 63%

April 22, 2025 (MLN): Engro Fertilizers Limited (PSX: EFERT) has reported a profit of Rs2.90 billion for the quarter ended March 31, 2025, marking a sharp 62.65% decline from Rs7.76bn in the same period last year.

The company has declared an interim cash dividend of Rs2.25 per share, representing 22.50%.

According to the company’s consolidated condensed interim statement of profit or loss, the downturn in profitability was primarily driven by a steep drop in net sales, which fell by 58.95% to Rs30.29bn compared to Rs73.78bn in Q1 2024.

Correspondingly, the cost of sales declined by 65.36% to Rs19.6bn, resulting in a 37.89% lower gross profit of Rs10.68bn.

Operating expenses remained mixed, with selling and distribution expenses falling by 26.53% to Rs3.22bn, while administrative expenses rose by 11.86% to Rs1.24bn.

Other income also saw a significant decrease of 46.85%, standing at Rs6.22bn against Rs11.7bn last year.

Meanwhile, finance costs surged considerably by 579.22% to Rs1.09bn, reflecting possible impacts from increased borrowings or interest rates.

Other operating expenses dropped substantially by 75.64%, and other expenses decreased by 32.28%, offering some relief to the bottom line.

Despite a minor gain allowance on subsidy receivable from the Government of Pakistan of Rs10.5 million down 81.79% from last year the company posted a 59.31% drop in profit before taxation, which stood at Rs4.93bn.

A 53.35% decrease in taxation to Rs2.03bn partially offset the decline in pre-tax earnings.

Earnings per share (EPS) for the quarter came in at Rs2.17, down from Rs5.81 in the corresponding period last year, reflecting the overall drop in profitability.

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