Engro Polymer’s profit plummets by 61% YoY in 1HCY23

August 10, 2023 (MLN): Engro Polymer and Chemicals Limited (PSX: EPCL) experienced a significant decline of 61.07% YoY in its profitability, clocking in its profit after tax at Rs2.75bn [EPS: Rs2.69] in 1HCY23.

Along with the results, the company announced an Interim cash dividend for ordinary shareholders for the period ended June 30, 2023, Rs1.50 per share i.e. 15%.

This is in addition to the interim cash dividend already paid at Rs1 per share i.e. 10%.

Moreover, the company announced an Interim cash dividend for preference shareholders for the period ended June 30, 2023, Rs0.50 per share i.e. 5%.

This is in addition to the interim cash dividend already paid at Rs0.50 per share i.e. 5%.

Going by the results, the company's top line decreased by 18.46% YoY to Rs37.02bn as compared to Rs45.4bn in SPLY.

The cost of sales fell by 7.39% YoY but was lesser than proportionate to the sales decline, which worsened the gross profit by 40.47% YoY to Rs9.04bn in 1HCY23.

During the period under review, other income contracted by 8.87% YoY to stand at Rs776.35 million in 1HCY23 as compared to Rs851.93m in SPLY.

On the expense side, the distribution and marketing expenses remained relatively flat at Rs603.38m, while other expenses declined by 47.44% YoY to clock in at Rs1.12bn during the review period.

The company’s finance costs inflated by 2.02x YoY and stood at Rs2.73bn as compared to Rs2.13bn in 1HCY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs2.34bn against the Rs4.73bn paid in the corresponding period of last year, depicting a fall of 50.50% YoY.

Amount in thousand except for EPS

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