Engro Fertilizers reports Rs28.26bn profit for 2024, up 8% YoY

February 10, 2025 (MLN): Engro Fertilizers Limited (PSX: EFERT) has reported a profit of Rs28.26 billion for the year ended December 31, 2024, marking an 8% increase from the previous year's Rs26.2bn.

The company declared a final cash dividend of Rs8 per share (80%) for the year ended, in addition to interim cash dividends already paid at Rs13.5 per share (135%).

The company's strong financial performance was driven by a significant rise in net sales, despite increased costs and expenses.

According to EFERT’s consolidated profit and loss statement, net sales surged by 14.74% to Rs256.67bn in 2024, compared to Rs223.7bn in 2023.

However, the cost of sales also rose sharply by 21.78%, reaching Rs184.39bn.

Despite this, the company maintained a steady gross profit of Rs72.28bn, nearly unchanged from the previous year.

Operating expenses saw a notable rise, with selling and distribution expenses increasing by 36.78% to Rs17.85bn, while administrative expenses climbed 3.98% to Rs4.76bn.

Other income declined by 21.24% to Rs2.92bn, and finance costs surged dramatically by 208.34% to Rs4.13bn, reflecting the impact of higher interest rates or increased borrowings.

Despite these challenges, the company benefited from other gains amounting to Rs1.2bn, reversing a loss of Rs2.98bn in 2023.

However, profit before taxation dropped by 9.13% to Rs45.16bn.

A significant reduction in taxation expenses, which declined by 28.11% to Rs16.89bn, contributed to the overall increase in net profit.

Earnings per share (EPS) for the year stood at Rs21.16, up from Rs19.61 in 2023, reflecting improved profitability for shareholders.

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