Engro Fertilizers Limited has announced its financial results for the calendar year 2019.
The company booked a consolidated profit of Rs. 16.87 billion, down by 3.10% as compared with Rs. 17.41 billion profit earned in the previous year. This was mainly due to higher other operating expenses, an increase in finance cost and higher taxes.
According to the results notified at PSX, the company reported a revenue of Rs. 121.35 billion, up by 11.15% as compared with Rs. 109.19 billion last year due to higher Urea and DAP prices. The cost of sales was reported at Rs. 81.81 billion, up by 10.74% as compared to Rs. 73.88 billion recorded in the corresponding period. This took the gross profit to Rs. 39.53 billion, showing a growth of 12% as it was reported at Rs. 39.53 billion.
Alongside the result, the company announced a final cash dividend of Rs. 2/share, taking the full-year 2019 payout to Rs. 13/share.
Earnings per share of the company were reported at Rs. 12.64, down from Rs. 13.04.
Amid higher interest earned on GIDC accumulation, the other income of the company was increased by 111.05% to Rs 4.35 billion as compared to Rs. 2.06 billion which was mainly on account of a higher return on cash and short term investments. Other operating expenses increased by 71.15% to Rs. 2.62 billion. The finance cost was posted at Rs. 3.88 billion, up by 87.70% as compared with Rs. 2.07 billion recorded in the same period last year.
A higher effective tax rate during the year made a huge effect on the company’s earnings, which was 36% in 2019 as compared to 28% in 2018. The company paid Rs. 10.52 billion as taxes during 2019, almost 53.25% higher as compared with the taxes paid (Rs. 6.86 billion) in 2018.