Engro Fertilizers posts Rs5.46bn profit in 1HCY23, announces 30% dividend

July 27, 2023 (MLN): Engro Fertilizers Limited (PSX: EFERT) unveiled its financial results for the 1HCY23, wherein the profit after tax clocked in at Rs5.46 billion [EPS: Rs4.09], compared to a profit of Rs5.41bn [EPS: Rs4.05] in the same period last year (SPLY).

Along with the 1HCY23 financial results, the board of directors of EFERT has also announced an interim cash dividend for the quarter ended June 30, 2023, at Rs3 per share i.e. 30%.

This is in addition to the interim cash dividend already paid at Rs3.50 per share i.e. 35%.

Going by the results, the company's top line inflated by 9.62% YoY to Rs82.37bn as compared to Rs75.14bn in SPLY.

The cost of sales also rose by 14.42% YoY, which worsened the gross profit by 1.56% YoY to Rs22.2bn in 1HCY23.

During the review period, other income went up by 5.87% YoY to stand at Rs1.16bn in 1HCY23 as compared to Rs1.1bn in SPLY.

On the expense side, the company observed an increase in selling and distribution expenses by 23.65% YoY and a decrease in other expenses by 30.85% YoY to clock in at Rs1.37bn and Rs1.28bn respectively during the review period.

The company’s finance costs grew by 7.58% YoY and stood at Rs1.14bn as compared to Rs1.06bn in 1HCY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs8.45bn against the Rs9.41bn paid in the corresponding period of last year, depicting a decrease of 10.14% YoY.

Unscheduled maintenance on the base plant, which was closed from June 05 to 30, 2023, and shutdowns in the plant situated at Port Qasim resulted in lower offtakes.

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