Engro Fertilizers Limited (EFERT) reported a substantial 63% decrease in its profit after tax (PAT) for the first quarter ending March 31, 2025, totaling Rs2.90 billion compared to Rs7.76 billion in the same period last year. This downturn was disclosed in the company’s consolidated financial results submitted to the Pakistan Stock Exchange (PSX) on Tuesday.
Since the announcement of these results, the company’s stock price has dropped by more than 2% as of 1:29 pm.
The company’s earnings per share (EPS) fell to Rs2.17 from Rs5.81 year-on-year. Despite the decline, EFERT announced a cash dividend of Rs2.25 per share for the first quarter of the calendar year 2025.
Net sales experienced a sharp 58% drop, amounting to Rs30.29 billion, down from Rs73.78 billion in the corresponding quarter of the previous year. The cost of sales also decreased by 65% to Rs19.60 billion from Rs56.59 billion, resulting in a gross profit of Rs10.68 billion, compared to Rs17.20 billion last year.
Selling and distribution expenses were reduced to Rs3.22 billion from Rs4.39 billion, while administrative expenses increased to Rs1.24 billion from Rs1.10 billion. Notably, the company’s finance costs surged by 580%, reaching Rs1.09 billion, up from Rs160.5 million in the first quarter of 2024. Consequently, profit before tax stood at Rs4.9 billion, a significant decline from Rs12.11 billion in the same period last year.
Engro Fertilizers Limited, a subsidiary of Engro Corporation, is a leading fertilizer manufacturer in Pakistan, holding a 35% market share as of 2023. Headquartered in Karachi, the company operates major production facilities in Daharki and Port Qasim. Established in 2010, EFERT is known for its flagship products like Zarkhez, Zingro, Zorawar, and Zoron. In 2024, the company reported a profit after tax of Rs28.3 billion, reflecting an 8% increase from the previous year, attributed to enhanced operational efficiency and cost optimization.
