April 21, 2022 (MLN): Engro Corporation Limited (ENGRO), one of Pakistan’s largest conglomerates with the company’s business portfolio in four verticals, which include food & Agri, petrochemicals, energy & infrastructure and connectivity has announced its financial performance today wherein the company maintained its net profits for the 1Q CY22 at Rs14.89 billion (EPS: Rs13.84).
Along with the result, the company announced an interim cash dividend for the quarter ended March 31, 2022, at Rs12 per share i.e., 120%.
As per the company’s financial statement, higher other operating expenses (up by 2.4x YoY) and lower profitability from the Fertilizers and Power businesses kept Engro’s profitability in check.
On the fertilizer business front, EFERT (the largest contributor to ENGRO’s earnings) witnessed a decline in its profitability by 4% YoY to Rs5.5 billion (EPS: Rs4.13) during 1QCY22 on the back of the ending of concessionary gas flow and a decline in Urea offtake.
Similarly, Engro Powergen Qadirpur Limited (EPQL) posted a profit after tax of Rs151mn (EPS: Rs0.47) during 1QCY22, depicting a decline of 62% YoY against the net profit of Rs399.2mn due to lower gross margins.
The bottom line of Engro Polymer & Chemicals Limited (EPCL) settled at Rs4.71billion (EPS Rs5.19), depicting an increase of 14% YoY when compared to Rs4.14bn (EPS: Rs4.56) in 1QCY21, mainly on the back of higher volumetric sales.
On the food business front, FrieslandCampina Engro Pakistan Limited (FCEPL)’s profits were up by 21% YoY to Rs663.7mn in 1QCY22 due to strong volumetric growth in all categories.
Overall, ENGRO recorded notable revenue growth of 24.6% YoY to Rs88.3bn during the review period, mainly on account of higher revenues from the fertilizer, chemical and other businesses. However, the gross margins of the company declined from 35% to 31% in the said period.
The finance cost of the company increased by 43% YoY to Rs5bn owing to higher borrowings and interest rates.
Share of profit from JV clocked in at Rs998mn, down 3% YoY, mainly due to subdued performance of food business.
Among other line items, other income increased by 63.5% YoY to Rs3.9bn while the tax expenses almost remained stable at Rs5.9bn.
With this, the effective tax rate of the company remained static at 28% during the review period.
|
Consolidated Financial Results for the quarter ended March 31st 2022 (Rupees '000') |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Net Revenue |
88,333,240 |
70,866,193 |
24.65% |
|
Cost of revenue |
(61,115,604) |
(46,050,048) |
32.72% |
|
Gross Profit |
27,217,636 |
24,816,145 |
9.68% |
|
Distribution and selling expenses |
(1,888,654) |
(1,656,524) |
14.01% |
|
Administrative expenses |
(1,670,585) |
(1,261,150) |
32.47% |
|
Other income |
3,986,005 |
2,438,052 |
63.49% |
|
Other operating expenses |
(2,699,740) |
(1,131,788) |
138.54% |
|
Operating profit |
24,944,662 |
23,204,735 |
7.50% |
|
Finance cost |
(5,127,664) |
(3,589,096) |
42.87% |
|
Share of income from JV and associates |
988,329 |
1,018,656 |
-2.98% |
|
Profit before taxation |
20,805,327 |
20,634,295 |
0.83% |
|
Taxation |
(5,907,862) |
(5,855,604) |
0.89% |
|
Profit from continuing operations |
14,897,465 |
14,778,691 |
0.80% |
|
Profit/(loss) from discontinued operations (attributable to owners of the holding company) |
238 |
302 |
-21.19% |
|
Profit for the year |
14,897,703 |
14,778,993 |
0.80% |
|
Earnings/ (loss) per share – basic and diluted (Rupees) |
13.84 |
14.47 |
-4.35% |
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