Engro Corp’s half-year profit increases 35 percent

KARACHI: Engro Corporation’s profit increased 35 percent to Rs11.054 billion for the first half ended June, translating into earnings per share (EPS) of Rs11.63, a bourse filing said on Thursday.

Engro Corp’s profit amounted to Rs6.717 billion with EPS of Rs7.21 in the corresponding period a year earlier, a statement to Pakistan Stock Exchange (PSX) said.

The group announced cash dividend of Rs7/share for the quarter ended June 30 in addition to interim dividend of Rs5/share already paid.

Engro Corporation’s profit almost doubled to Rs4.217 billion with EPS of Rs3.62 in the April to June quarter. The company recorded profit of Rs2.420 billion with EPS of Rs1.67 in the corresponding period a year earlier.

Quarterly sales increased to Rs38 billion from Rs29.66 billion in the same period a year ago.

Analyst Shankar Talerja at Topline Securities said fertiliser business recorded growth in its sales revenue due to increase in urea and fertiliser prices. Similarly, polymer business showed robust growth in revenue due to increase in its polyvinyl chloride volumes.

Selling and distribution expenses fell 13 percent year-on-year to Rs1.7 billion due to lower handling cost of the company’s fertiliser division. Similarly, administration cost dropped two percent to Rs896 million. “We highlight poor crop season, scarcity of water for sowing season, volatility in polymer margins and change in regulatory structure in energy division as key risks for the holding company,” Talerja said.

Nestle Pakistan’s profit decreases 21 percent

Profit of Nestle Pakistan Limited fell 21 percent to Rs6.259 billion for the half year ended June 30, on higher distribution and selling expenses and finance cost.

Nestlé Pakistan said the company faced pressures on its earnings owing to challenging economic conditions with rupee depreciation, rising fuel prices and input costs.

“Resultantly its earnings per share declined to Rs138.03 versus 174.95 in the corresponding period last year,” the company said in a statement. “The company remains optimistic about growth and profit development despite ongoing macroeconomic challenges.”

The company declared interim cash dividend of Rs110/share.

Distribution and selling expenses stood at Rs9.8 billion in the January-June period compared to Rs9.4 billion in the corresponding period a year earlier.

Nestle Pakistan recorded profit of Rs2.9 billion with EPS of Rs63.3/share during the three months ended June 30 compared to Rs3.8 billion with EPS of Rs84.53/share in the corresponding period a year earlier.

Bank Al Habib’s profit drops 5 percent

Profit of Bank AL Habib marginally fell five percent to Rs4.20 billion in the half-year period ended June 30, translating into EPS of Rs3.78.

The bank’s profit amounted to Rs4.4 billion with EPS of Rs3.97 in the corresponding period a year earlier.

Bank Al Habib didn’t announce any cash dividend.

The bank’s profit (excluding capital gains) grew 35.36 percent compared to corresponding period last year, it said in a statement.

The bank declared pre-tax profit of Rs7.08 billion in the January-June period as compared to Rs7.52 billion in the corresponding period a year earlier. The bank’s total assets increased nine percent to Rs1 trillion as on June 30 “mainly due to the expansion of bank’s loan book by Rs105.34 billion, standing at Rs445.17 billion as on June 30, 2018, showing growth of 31 percent in net advances, compared to the last year end,” the bank said. “The bank has improved its market share in terms of loan book.”

Advances to deposits ratio of the bank stood at 59.45 percent.

Bank Al Habib said its prudent financing strategies and sound risk management policies of the bank resulted in decrease in non-performing to gross advances ratio to 1.13 percent as at June 30 as against 1.52 percent as on the last yearend. Coverage ratio of non-performing loans also increased to 145.54 percent as at June 30 from 144.32 percent in December 31.

The bank maintained long- and short-term rating at AA+ (double A plus) and A1+ (A one plus). The ratings reflect the bank's sustained performance, high quality assets, satisfactory financial profile and healthy liquidity.

The deposits of the bank increased 8.12 percent to Rs748.80 billion as on June 30.

The bank continued with its strategy for outreach expansion, adding significant branches every year. The bank’s network reached 685 branches/sub branches having coverage in 259 cities nationwide and three branches and four representative offices outside Pakistan. The bank is operating 787 automated-teller machines across the country.

Shell Pakistan’s profit falls 31pc

Profit of Shell Pakistan fell 31 percent to Rs1.603 billion for the half year ended June 30 on higher distribution, marketing and administrative expenses.

The company’s EPS recorded a decline to Rs14.98 from Rs21.85.

The company declared interim cash dividend for the quarter and six months ended June 30 at the rate of Rs7/share.

The company’s profit fell due to high distribution and marketing expenses which amounted to Rs2.8 billion in the January-June period from Rs2.7 billion in the corresponding period a year earlier. Shell’s administrative expenses, however, declined to Rs2.01 billion from Rs1.94 billion.

The company’s sales totaled at Rs106 billion in the six months ended June 30 as opposed to Rs117 billion, showing a drop of 9.4 percent.

Shell’s profit slipped by a bigger margin ending at Rs247 million in the April to June quarter compared with Rs942 million in the corresponding period a year earlier.

Pak Electron’s profit slides 55pc

Pak Electron’s profit slid 55 percent to Rs1.22 billion with EPS of Rs2.4 for the half-year period ended June 30.

The company’s profit was recorded at Rs2.73 billion with EPS of Rs5.44 in the corresponding period a year earlier, a statement to PSX said.

The company didn’t announce any cash dividend. Its net sales declined 14 percent to Rs22.5 billion in 1H2018.

Analyst Nabeel Khursheed at Topline Securities decline in net sales was due to fall in sales of refrigerators and air conditioners.

Sales of refrigerators and air conditioner were down 20 percent and eight percent year-on-year to around 264,000 and 66,000, respectively.

“We believe that this was due to competition from Chinese brands like Haier and Gree,” Khursheed said. “We flag increase in raw material costs, rupee devaluation, higher working capital cost and greater competition from new entrants as key risks for PAEL.