Engro Corporation reports drop of 3pc in net earnings for April-June 2017

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Karachi: In a notification sent to the bourse on Friday, Engro Corporation reported its earnings for the April-June 2017 quarter which ended June 30th.

Engro reported a rise in consolidated profit aided by non-core businesses but all the gains made were wiped out by super tax, ravaging its net earnings by 3pc to reach Rs2.42b for April-June 2017.

The company reported strong income growth from other segments besides its core businesses almost going up by 50pc to reach Rs3.22b in April-June 2017 quarter from Rs1.56b in same period last year (SPLY).

Engro Corporation paid Rs4.26b on profit registering a 2.6 time increase from SPLY when tax on profits were reported to have been Rs1.63b.

Net sales also reported a decrease of 11pc reaching Rs29.66b in April-June 2017 in comparison to Rs33.17b in SPLY. This was attributable to discontinuation of revenue stream from Engro Foods since the company divested its majority holding to Royal FrieslandCampina in December last year.

It recorded a decrease in finance cost reaching Rs1.26b for the April-June 2017 quarter in comparison to Rs1.65b in SPLY.

Half-year (Jan-June) profits also decreased to Rs6.71b from Rs6.91b in SPLY.

The company reported earnings per share of Rs1.67 for April-June 2017 in comparison to Rs3.49 in SPLY.

Engro Corporation announced a 2nd interim cash dividend of Rs7 per share in addition to the Rs5 per share dividend already paid.

The company’s shares were trading at Rs294.52, down 1.6pc at the close of trading on Friday.