Engro maintains profitability at Rs14.89bn, reports payment of Rs12/sh
April 21, 2022 (MLN): Engro Corporation Limited (ENGRO), one of Pakistan’s largest conglomerates with the company’s business portfolio across four verticals, which include Food & Agribusiness, Petrochemicals, Power & Infrastructure and connectivity, today announced its financial performance in which the company maintained its net profit for Q1 CY22 at Rs14.89 billion (EPS: Rs13.84).
Along with the result, the company announced an interim cash dividend for the quarter ended March 31, 2022, at Rs12 per share, or 120%.
According to the company’s financials, higher other operating expenses (up 2.4x year-on-year) and lower profitability in the Fertilizer and Energy businesses kept Engro’s profitability in check.
In the field of fertilizers, EFERT (the largest contributor to ENGRO’s earnings) saw a drop in profitability of 4% YoY to Rs 5.5 billion (EPS: Rs 4.13) during 1QCY22 due to the end of the flow of concession gas and a drop in Urea sampling.
Similarly, Engro Powergen Qadirpur Limited (EPQL) recorded a post-tax profit of Rs 151 million (EPS: Rs 0.47) during 1QCY22, representing a 62% year-on-year decline from net profit of Rs 399.2 million due to margins weaker brutes.
The net result of Engro Polymer & Chemicals Limited (EPCL) stood at Rs4.71 billion (EPS Rs5.19), representing a 14% year-on-year increase from Rs4.14 billion (EPS: Rs4.56) at 1QCY21, mainly driven by higher volumetric sales .
On the food industry front, FrieslandCampina Engro Pakistan Limited (CEPF) earnings increased by 21% year-on-year to Rs663.7 million on 1 QCY22 due to strong volumetric growth across all categories.
Overall, ENGRO recorded notable revenue growth of 24.6% year-on-year to Rs 88.3 billion during the reporting period, mainly driven by higher revenue from Fertilizers, Chemicals and other activities. However, the company’s gross margins fell from 35% to 31% during the said period.
The company’s finance cost rose 43% year-on-year to Rs 5 billion due to higher borrowing and interest rates.
The profit share of JV was recorded at Rs998 million, down 3% year-on-year, mainly due to poor power performance Business.
Among other items, other income rose 63.5 percent year-on-year to 3.9 billion rupees, while tax expenditure remained nearly flat at 5.9 billion rupees.
With that, the company’s effective tax rate remained static at 28% during the reporting period.
|
Consolidated financial results for the quarter ended March 31, 2022 (in thousands of rupees) |
|||
|---|---|---|---|
|
|
March 22 |
March 21st |
% Switch |
|
Net revenue |
88,333,240 |
70 866 193 |
24.65% |
|
Revenue cost |
(61,115,604) |
(46,050,048) |
32.72% |
|
Gross profit |
27,217,636 |
24,816,145 |
9.68% |
|
Distribution and sales costs |
(1,888,654) |
(1,656,524) |
14.01% |
|
Administrative expenses |
(1,670,585) |
(1,261,150) |
32.47% |
|
Other income |
3,986,005 |
2,438,052 |
63.49% |
|
Other operating expenses |
(2,699,740) |
(1,131,788) |
138.54% |
|
Operating result |
24,944,662 |
23,204,735 |
7.50% |
|
Financial cost |
(5,127,664) |
(3,589,096) |
42.87% |
|
Revenue share of JV and associates |
988 329 |
1,018,656 |
-2.98% |
|
Profit before tax |
20,805,327 |
20,634,295 |
0.83% |
|
Taxation |
(5,907,862) |
(5,855,604) |
0.89% |
|
Profit from continuing operations |
14,897,465 |
14,778,691 |
0.80% |
|
Profit/(loss) from discontinued operations (attributable to owners of the holding company) |
238 |
302 |
-21.19% |
|
profit of the year |
14,897,703 |
14,778,993 |
0.80% |
|
Earnings/ (loss) per share – basic and diluted (rupees) |
13.84 |
2:47 p.m. |
-4.35% |
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Published on: 2022-04-21T14:21:24+05:00
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