Islamabad, Apr 22, 2025: Engro Fertilizers Limited (EFERT), listed on the Pakistan Stock Exchange, has disclosed its financial performance for the first quarter of 2025, revealing a significant drop in earnings.
The company recorded a consolidated profit after tax (PAT) of Rs. 2.9 billion, reflecting a sharp 63% decline compared to Rs. 7.76 billion reported in the same period of 2024.
Earnings per share (EPS) correspondingly fell to Rs. 2.17 from Rs. 5.81.
Quarter-over-quarter, the company’s profitability took an even steeper hit, plunging by 72%.
Accompanying the results, EFERT declared an interim dividend of Rs. 2.25 per share, a notable cut from the Rs. 8.00 per share offered in Q1 2024.
Revenue for Q1 2025 was recorded at Rs. 30.3 billion, which is a substantial 59% year-on-year drop.
This contraction was primarily caused by a 53% fall in urea sales and a 70% reduction in DAP (Di-Ammonium Phosphate) volumes, impacted by weak demand in the agriculture sector and a 36% decline in DAP pricing.
On a quarterly comparison, sales shrank by 64%, driven by lower product dispatches—urea down by 63% and DAP by 77%.
Read More: Engro Fertilizers’ Profit Surges 8% to Rs. 28.2 Billion in 2024
Despite reduced sales, the gross profit margin improved to 35.3% in Q1 2025 versus 33.1% last year, owing to higher urea pricing.
Distribution expenses dropped 27% to Rs. 3.2 billion due to lower logistical activities and reduced sales volume.
Other income fell by 76% year-on-year to Rs. 1.24 billion, mainly due to decreased returns on financial investments.
However, sequentially, other income rose 34% thanks to better returns on available cash and deposits.
Financing charges surged nearly sevenfold year-on-year, hitting Rs. 1.09 billion, primarily due to increased reliance on short-term loans.
However, finance cost decreased by 26% from the previous quarter, driven by a drop in interest rates.
The company’s effective tax rate rose to 41% in Q1 2025 compared to 36% in Q1 2024. As of March 2025, short-term liabilities had climbed to Rs. 28 billion from Rs. 12.5 billion in December 2024.
Meanwhile, EFERT’s cash and bank reserves improved slightly, reaching Rs. 9.2 billion from Rs. 8 billion at the close of the previous year.
