EPCL declares dividend despite 21.57% YoY profit decline in 2023

February 20, 2024 (MLN): Engro Polymer and Chemicals Limited (PSX: EPCL) experienced a fall of 21.57% YoY in its earnings for 2023, wherein the profit after tax clocked in at Rs8.93 billion [EPS: Rs9.12], compared to a profit of Rs11.39bn [EPS: Rs12.37] in the same period last year (SPLY).

Despite the company reporting a fall in profits, the Board of Directors (BoD) of BOP has recommended a final cash dividend for preference shareholders of Rs0.67/- per share i.e. 6.7%.

This is in an addition to interim cash dividend already paid at Rs1.65 per share i.e. 16.50%.

Moreover, the board has declared a final cash dividend for ordinary shareholders for the year ended December 31, 2023, Rs1 per share i.e10%.

This is in an addition to interim cash dividend already paid at Rs5 per share i.e50.00%

Going by the results, the company's top line slid by 0.96% YoY to Rs81.27bn as compared to Rs82.06bn in SPLY.

However, the cost of sales rose by 3.74% YoY due to which the gross profit worsened by 12.53% YoY to Rs20.73bn in 2023.

On the expense side, the company observed an increase in Distribution and marketing expenses by 41.77% YoY and other expenses by 46.49% YoY to clock in at Rs832.43m and Rs1.86bn respectively during the review period.

Likewise, EPCL's outflow as administrative expenses also rose 21.73% YoY to Rs1.62bn in 2023.

The income statement further reveals that the company's other income inched up 4.61% YoY to stand at Rs1.55bn in 2023 as compared to Rs1.48bn in SPLY.

The company’s finance costs soared by 24.26% YoY and stood at Rs4.21bn as compared to Rs3.39bn in 2022, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs4.82bn against the Rs5.01bn paid in the corresponding period of last year, depicting a decrease of 3.66% YoY.

Amount in thousand except for EPS

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