Engro profit trips 2.8pc; EFoods weighs

KARACHI: Engro Corporation Limited’s (ENGRO) net profit for the half year ended June 30, 2017 figured at Rs6.717 billion, which is 2.8 percent lower than Rs6.911 billion netted in the same period last year, a notice filed with Pakistan Stock Exchange (PSX) revealed on
Friday.

“The earnings per share (EPS) for the period under review stood at Rs7.21 as against the profit of Rs10.54 in the corresponding period last year,” said Engro Corp in the bourse filing. The company, in the same notice, also declared an interim cash dividend of Rs7.0/share, in addition to a dividend of Rs5.0/share already paid to the shareholders. It must be noted that Engro Corp lost 2.3 percent at the stock trading on Friday.

“During the period, out of ENGRO's subsidiaries and associates, Engro Fertilizer (EFERT) and Engro Polymer’s (EPCL) profitability grew markedly, but EFOODS's disappointing performance dented the holding company's profitability,” Amreen Soorani said in a report issued by JS Global Capital.

The company’s net sales for the period under review reached Rs52.241 billion, down 21.7 percent compared to Rs66.768 billion in the same period a year ago. Engro Foods became an associated company with effect from December 19, 2016. Accordingly, its revenues are not consolidated for the period January-June 2017, whereas comparative period includes such revenues.

The company contributed Rs5.809 billion to national exchequer as taxation, which includes a provision of Super Tax levied through Finance Act, 2017 retrospectively on the income for the financial year ended December 31, 2016. “The company intends to challenge the levy of this tax and believes that there is a reasonable case in Company’s favor,” the bourse filing added.