ISLAMABAD: Engro Fertilizers Limited (EFERT), a subsidiary of Engro Corporation Limited, reported a profit after tax (PAT) of Rs28.26 billion for the year ended December 31, 2024, reflecting an 8% increase compared to Rs26.19 billion in 2023. The company’s earnings per share (EPS) stood at Rs21.16, up from Rs19.61 the previous year.
The increase in profits is attributed to enhanced operational efficiency through cost optimization and improved plant management, according to the company’s financial statement filed at the Pakistan Stock Exchange (PSX).
In line with its strong financial performance, the Board of Directors (BoD) of EFERT declared a final cash dividend of Rs8 per share (80%) in addition to the interim cash dividend of Rs13.5 per share (135%) already paid.
On a consolidated basis, Engro Fertilizers saw a nearly 15% year-on-year increase in revenue, which reached Rs256.68 billion in 2024, up from Rs223.7 billion in 2023. The growth was driven primarily by higher urea prices, which led to an increase in sales revenue.
However, despite the revenue growth, the company’s gross profit experienced a slight decline to Rs72.28 billion from Rs72.3 billion in 2023, as the cost of sales surged by 22% year-on-year. This resulted in a reduction in profit margins, which fell to 28.2% from 32.3% the previous year.
EFERT’s selling and administrative expenses rose by 28%, reaching Rs22.61 billion in 2024 compared to Rs17.63 billion in 2023. On a positive note, the company recorded a Rs1.2 billion gain in subsidy receivables from the government, a marked improvement over the Rs2.44 billion loss in 2023.
Despite a decrease in profit before tax (PBT), which fell by 9% to Rs45.15 billion, the company’s tax payment for the year was significantly lower, amounting to Rs16.89 billion compared to Rs23.5 billion in 2023.
Engro Fertilizers’ robust financial results underscore the company’s resilience in navigating challenges while optimizing its operations to deliver solid returns for shareholders.
