Engro Fertilizers up 64pc in 2023

KARACHI: Engro Fertilizers Limited reported a record annual profit of Rs26.19 billion for 2023, up 64 percent from a year earlier, boosted by higher sales and lower interest costs.

The company, a unit of Engro Corporation Limited, said in a statement to Pakistan Stock Exchange on Friday that its earnings per share rose to Rs19.61 from Rs11.98 in 2022.

It also announced a final cash dividend of Rs8 per share, taking the total payout for the year to Rs20.50 per share, or 205 percent of its face value. Engro Fertilizers said its revenue increased by 42 percent to Rs223.7 billion in 2023, driven by higher production and sales volumes of urea and diammonium phosphate (DAP) fertilizers.

“This increase reflects efficiency through cost optimization, increased production from the long-term reliability projects executed during 2022,” the company said. Its gross profit margin improved to 32.3 percent in 2023 from 27.3 percent in the previous year, while its interest expense declined by 27 percent to Rs1.9 billion, despite a sharp rise in interest rates in Pakistan.

The company posted a profit before tax of Rs49.69 billion in 2023, up 87 percent from a year ago. It paid Rs23.5 billion in taxes, compared with Rs10.56 billion in 2022. Engro Fertilizers said it remained committed to the Gas Pressure Enhancement Facilities (PEF) project, along with other major fertilizer manufacturers, to jointly develop and install pressure enhancement facilities at gas suppliers' delivery node to sustain the current level of gas pressure.