Engro Fertilizers Limited (EFERT), a company owned entirely by Engro Corporation Limited, announced its highest Profit After Tax (PAT) of Rs26.19 billion for the year 2023. This represents a substantial 64% increase compared to the previous year’s Rs16 billion, as per the company’s consolidated financial results disclosed at the Pakistan Stock Exchange (PSX) on Friday.
The significant surge in profit is credited to enhanced efficiency achieved through cost-saving measures and increased production resulting from long-term reliability projects implemented in 2022, according to the company’s statement. The PAT translates into earnings per share (EPS) of Rs19.61 in 2023, a notable rise from Rs11.98 recorded in the same period last year.
In addition to the interim cash dividends already distributed at Rs12.50 per share (125%), EFERT’s board announced a final cash dividend for the year at Rs8 per share (80%) during its meeting on February 15.
Overall, Engro Fertilizers’ revenue saw a robust 42% growth to Rs223.7 billion in 2023 from Rs157.02 billion in 2022. The gross profit of the fertilizer manufacturer surged by 69% to Rs72.29 billion, with a profit margin increasing to 32.3% in 2023, up from 27.3% in the previous year.
Other income also witnessed a significant 60% year-on-year rise, reaching Rs3.7 billion in 2023 compared to Rs2.3 billion in the same period the prior year. Despite substantial interest rate hikes, EFERT’s interest expense decreased by 27% to Rs1.9 billion in 2023, compared to Rs2.6 billion in 2022.
Consequently, the company posted a profit before tax (PBT) of Rs49.69 billion in 2023, reflecting an 87% increase. During the period, EFERT paid Rs23.5 billion in taxes in 2023, surpassing the Rs10.56 billion paid in the corresponding period last year.
