ENGRO posts 43% profit growth in 9MCY23, declares 40% dividend

October 24, 2023 (MLN): Engro Corporation Limited (PSX: ENGRO) delivered a strong financial performance, with a profit of Rs 43.87 billion [EPS: Rs41.56] for the first nine months of CY23.

This represents a notable 42.85% YoY increase from the profit of Rs30.71bn [EPS: Rs26.78] in the same period last year (SPLY).

Along with the results, the company announced an interim cash dividend for the third quarter ended September 30, 2023 at Rs4 per share i.e. 40%.

This is in addition to the interim cash dividend already paid at Rs42 per share i.e. 420%.

Going by the results, the company's top line rose by 26.26% YoY to Rs339.3bn as compared to Rs268.74bn in SPLY.

The cost of sales also rose by 24.34% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 30.71% YoY to Rs105.63bn in 9MCY23.

However, during the review period, other income rose by 51.29% YoY to stand at Rs20.81bn in 9MCY23 as compared to Rs13.75bn in SPLY.

On the expense side, the company observed a rise in sales and distribution expenses by 24.41% YoY while reducing other operating expenses by 26.77% YoY to clock in at Rs6.82bn and Rs5.7bn respectively during the review period.

The company’s finance costs expanded by 80.05% YoY and stood at Rs34.41bn as compared to Rs19.11bn in 9MCY23, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs28.91bn against the Rs24.44bn paid in the corresponding period of last year, depicting a rise of 18.32% YoY.

Amount in thousand except for EPS

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