Engro Fertilizers Q4 profit down 8% YoY

KARACHI: Engro Fertilizers (EFERT) announced its financial results for the fourth quarter of 2024, reporting a consolidated profit of Rs10.2 billion (EPS: Rs7.7), reflecting an 8.0 per cent decline year-on-year (YoY) but a 20 per cent increase quarter-on-quarter (QoQ). This brought full-year earnings to Rs28.2 billion (EPS: Rs21.16), up 8.0 per cent YoY.

The company declared a final cash dividend of Rs8 per share, aligning with market expectations, bringing the total 2024 payout to Rs21.5 per share (101 per cent payout ratio). The fourth-quarter results fell short of projections due to a 102 per cent YoY surge in distribution expenses, which reached Rs9.8 billion following a strong 51 per cent QoQ recovery in urea offtake and one-off discounts of Rs140 per bag.

Gross margins stood at 35 per cent for the quarter, down from 38.7 per cent in the same period last year but an improvement from 31 per cent in 3Q2024. Other income dropped 72 per cent YoY to Rs511 million, while finance costs soared fivefold to Rs1.5 billion due to increased short-term borrowing. The effective tax rate for Q42024 stood at 37.5 per cent, down from 44 per cent in the corresponding period last year.