Islamabad, Feb 10: Engro Fertilizers Limited (PSX: EFERT) has released its financial results for CY24, reporting a consolidated profit after tax (PAT) of Rs. 28,260 million, translating to an earnings per share (EPS) of Rs. 21.16. This marks an 8% year-on-year (YoY) growth compared to CY23’s PAT of Rs. 26,191 million (EPS: Rs. 19.61).
However, in 4QCY24, the company’s consolidated earnings dropped by 8% YoY, settling at Rs. 10,280 million (EPS: Rs. 7.70). Alongside the results, Engro Fertilizers announced a final cash dividend of Rs. 8.00 per share, bringing the total for CY24 to Rs. 21.50 per share.
The company’s net sales for CY24 rose by 15% YoY to Rs. 256,675 million. This increase is attributed to a 39% rise in urea prices and a 9% hike in DAP prices, along with a 10% increase in DAP offtake. However, urea sales experienced a 13% decline due to the 54-day shutdown of the EnVen plant for maintenance.
On a quarterly basis, 4QCY24 revenue saw a 13% YoY increase, reaching Rs. 84,830 million. This growth was primarily fueled by a 17% surge in urea offtake, while DAP sales registered a 5% decline.
The company’s gross margins for CY24 stood at 28.2%, down from 32.3% in CY23. The decline of 378 basis points in 4QCY24 resulted in gross margins settling at 34.9%, primarily due to higher gas prices.
Distribution costs soared to Rs. 17,855 million in CY24, reflecting a 37% YoY increase. In 4QCY24 alone, distribution expenses doubled YoY, driven by higher volumetric sales. Meanwhile, other income declined by 21% YoY, totaling Rs. 2,925 million, primarily due to lower returns from cash reserves. In 4QCY24, other income dropped by 72% YoY, amounting to Rs. 511 million due to reduced interest earnings.
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Finance costs surged twofold in CY24, reaching Rs. 4,129 million, reflecting the impact of higher interest rates. In 4QCY24, finance expenses skyrocketed by five times YoY, settling at Rs. 1,467 million due to increased borrowings.
The company recorded an effective tax rate of 38% in 4QCY24, compared to 44% in 4QCY23, reflecting a marginal decline in the taxation burden.
With steady revenue growth and strategic cost management, Engro Fertilizers continues to strengthen its market position despite operational challenges.
