Engro Polymer and Chemicals Limited (EPCL) has reported a sharp decline in financial performance for the half-year ending June 30, 2025. The company’s consolidated loss for the period has more than doubled compared to the same period last year, rising by 103% to Rs3.23 billion, from Rs1.59 billion in 2024.
Despite a 9.38% increase in net revenue, which reached Rs37.61 billion, the company faced severe cost pressures that outweighed its revenue gains. Cost of sales surged by 13.42%, reaching Rs36.16 billion, significantly surpassing the revenue growth and leading to a 42.04% drop in gross profit, which fell to Rs1.45 billion, compared to Rs2.50 billion in the previous year.
The company’s operational performance was further impacted by escalating other expenses, which rose dramatically by 644.42% to Rs398.07 million. Additionally, other income declined by 27.60%, totalling Rs213.60 million.
Operating results shifted from a profit to a loss, with the company reporting an operating loss of Rs225.38 million, a stark contrast to an operating profit of Rs1.19 billion in 2024. This represents a negative change of 118.88%.
Although finance costs decreased by 21.11% YoY to Rs2.99 billion, they continued to weigh heavily on the company’s profitability. This led to a 23.78% rise in loss before tax adjustments, which amounted to Rs3.22 billion.
Tax adjustments provided little relief, as the company registered a loss before income tax of Rs3.18 billion, up 20.26% from last year. Income tax adjustments, which had previously provided a benefit of Rs1.05 billion, turned into an expense of Rs52.95 million in the current period.
The company’s basic and diluted loss per share widened sharply by 80.20%, reaching Rs3.55 compared to Rs1.97 in 2024.
