Karachi, July 31, 2023 (PPI-OT): Engro Fertilizer Limited (EFERT)

Earnings: Engro Fertilizer Limited (EFERT) announced it 2QCY23 result. For the period, the Company reported consolidated earnings of PKR 1.1bn (PKR 0.79) compared to loss of PKR 0.1bn (LPS PKR 0.1) in the same period last year. This brings total earnings for 1HCY23 to PKR 5.5bn (PKR 4.09), up by +1%y/y.

Dividend/Payout: The Company announced cash dividend of PKR 3.0/share along with the result bringing to total cash payout for 1HCY23 to PKR 6.5/share.

Operating Performance: During 2QCY23, Company’s net sales remained flat as lower urea offtake was offset by higher prices. Gross margins clocked in at 30% during the quarter compared to 31% in the same period last year, amid higher gas prices. Company’s administrative cost declined by 12%y/y and Selling and Distribution costs increased by +25%y/y. Company’s finance cost increased by +21%y/y, owing to higher mark-up cost. Tax charge clocked in at PKR 6.1bn or 85% effectively higher when compared to 2QCY22 charge of 101%.