Engro Fertilizers’ Profit Up 8% to Rs. 28.2 Billion in 2024

Engro Fertilizers Limited (PSX: EFERT) today unveiled the financial result for CY24 posting a consolidated profit after Tax (PAT) of Rs. 28,260 million (EPS: Rs. 21.16) against Rs. 26,191 million (EPS: Rs. 19.61) in CY23, up by 8 percent YoY. Consolidated earnings in 4QCY24 clocked in at Rs. 10,280 million (EPS: Rs. 7.70), down 8 percent YoY. Alongside the result, the company announced a final cash dividend of Rs. 8.00/share (Rs. 21.50/share in CY24). Net sales in CY24 clocked in at Rs. 256,675 million, up 15 percent YoY which is on account of a 39 percent and 9 percent YoY hike in urea and DAP price, respectively tagged with a 10 percent YoY jump in DAP offtake. Meanwhile, urea sales declined by 13 percent YoY. According to Arif Habib Limited, this was on the back of 54 days of closure of the EnVen plant for maintenance. On a quarterly basis, the topline during 4QCY24 increased by 13 percent YoY, settling at Rs. 84,830 million, which is due to a 17 percent jump in urea offtake. Whereas, DAP sales reduced by 5 percent YoY, respectively. Gross margins in CY24 arrived at 28.2 percent vis-à-vis 32.3 percent in CY23. Whereas, gross margins plummeted by 378bps, settling at 34.9 percent amid higher gas prices. The distribution cost in CY24 clocked in at Rs. 17,855 million, up by 37 percent YoY. Meanwhile, during 4QCY24, the distribution cost of the company surged by 2x YoY due to higher volumetric sales. Other income declined by 21 percent YoY settling at Rs. 2,925 million in CY24 given the dip in income from cash and cash balances. Meanwhile, in 4QCY24, the other income came out to be Rs. 511 million, down 72 percent YoY owing to lower interest income. Finance cost climbed up by 2x YoY, clocking in at Rs. 4,129 million during CY24 owed to higher interest rates. Whereas, the finance cost in 4QCY24 swelled up by 5x YoY, reaching Rs. 1,467 million due to higher borrowings. The company booked effective taxation at 38 percent in 4QCY24 vs 44 percent in 4QCY23.