Islamabad, Feb 11: Engro Polymer & Chemicals Ltd (PSX: EPCL) has released its financial results for 2024, reporting a loss of Rs. 161 million (LPS: Rs. 0.40), a sharp contrast to the profit of Rs. 8,932 million (EPS: Rs. 9.12) in the same period last year. The company also saw a 61 percent year-on-year decline in its 4QCY24 profit, which stood at Rs. 2,128 million (EPS: Rs. 2.34).
For the full year, net sales were recorded at Rs. 75.7 billion, marking a 7 percent decrease compared to CY23. However, on a quarterly basis, sales for 4QCY24 rose by 11 percent year-on-year, reaching Rs. 21.3 billion, driven by higher volumetric sales, according to Arif Habib Limited.
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The company’s gross profit margin for CY24 dropped significantly to 8.7 percent, down from 25.3 percent in the previous year. This decline was mainly attributed to higher gas prices and weaker PVC margins. In 4QCY24, the gross margin fell to 14.1 percent, down 10 percentage points year-on-year for similar reasons.
Finance costs surged by 79 percent year-on-year to Rs. 7.5 billion for CY24, reflecting an increase in short-term borrowings. In 4QCY24, finance costs spiked by seven times year-on-year due to higher borrowing levels.
Other income also showed a sharp decline, dropping by 49 percent year-on-year to Rs. 795 million in CY24, primarily due to lower short-term investments and falling interest rates. Similarly, 4QCY24 saw a 23 percent year-on-year decline in other income.
The company also reported a tax reversal of Rs. 1.2 billion in 4QCY24, in contrast to a tax expense of Rs. 931 million in the same quarter last year. Despite the reversal, the company did not declare any cash dividend for CY24 due to the overall losses. In CY23, a cash dividend of Rs. 6.00 per share was declared. The net margin for CY24 stood at -0.2 percent, a significant drop from the 11.0 percent margin achieved in CY23.
