Engro Fertilizers Limited (EFERT), a wholly owned subsidiary of Engro Corporation Limited, posted its highest Profit After Tax (PAT) of Rs26.19 billion for year 2023, an increase of 64% as compared to Rs16 billion recorded in 2022, showed the company’s consolidated financial results posted at the Pakistan Stock Exchange (PSX) on Friday.
“This increase reflects efficiency through cost optimization, increased production from the long-term reliability projects executed during 2022,” the company said in its notice.
The profit translates into earnings per share (EPS) of Rs19.61 in 2023, in comparison to an EPS of Rs11.98 recorded in the same period last year.
Moreover, the board of EFERT in its meeting held on February 15, announced a final cash dividend for the year ended at Rs8 per share i.e. 80%.
This is in addition to interim cash dividends already paid at Rs12.50 per share i.e. 125%.
On a consolidated basis, Engro Fertilizers’ revenue grew by 42% to Rs223.7 billion in 2023 from Rs157.02 billion in 2022.
Engro Corporation’s half-year profit up 28%
The fertilizer manufacturer’s gross profit rose by 69% to Rs72.29 billion as compared to Rs42.84 billion. The profit margin rose to 32.3% in 2023, up from 27.3% in the preceding year.
The other income jumped 60% YoY, clocking in at Rs3.7 billion during 2023 as compared to Rs2.3 billion recorded in same period last year.
Despite significant interest rate hikes during the year, EFERT’s interest expense reduced by 27% to reach Rs1.9 billion in 2023, as compared to Rs2.6 billion in 2022.
Consequently, the company posted a profit before tax (PBT) of Rs49.69 billion in 2023, an increase of 87%.
During the period, the company paid Rs23.5 billion in taxes in 2023, higher than Rs10.56 billion in same period last year.
Engro Fertilizers shared that along with other major fertilizer manufacturers, it remains committed to Gas Pressure Enhancement Facilities (PEF) project, to jointly develop and install pressure enhancement facilities at gas suppliers’ delivery node to sustain the current level of pressure of gas.
The company’s expected share of capital expenditure is over $100 million.