Engro Fertilizers Limited has reported a remarkable annual profit of Rs26.19 billion for the year 2023, marking a substantial increase of 64 percent compared to the previous year. This significant growth was fueled by elevated sales and reduced interest costs. The company, a subsidiary of Engro Corporation Limited, disclosed this information in a statement to the Pakistan Stock Exchange on Friday, highlighting that its earnings per share surged from Rs11.98 in 2022 to Rs19.61 in 2023.
Additionally, Engro Fertilizers declared a final cash dividend of Rs8 per share, resulting in a total payout of Rs20.50 per share, equivalent to 205 percent of its face value. The company attributed its revenue growth of 42 percent to Rs223.7 billion in 2023 to increased production and sales volumes of urea and diammonium phosphate (DAP) fertilizers.
Engro Fertilizers attributed this growth to enhanced efficiency through cost optimization and increased production resulting from long-term reliability projects executed during 2022. Moreover, the company’s gross profit margin improved from 27.3 percent in the previous year to 32.3 percent in 2023, while its interest expense decreased by 27 percent to Rs1.9 billion despite a notable rise in interest rates in Pakistan.
In terms of profit before tax, Engro Fertilizers recorded Rs49.69 billion in 2023, marking an 87 percent increase from the previous year. The company’s tax payments also rose to Rs23.5 billion, compared to Rs10.56 billion in 2022.
Engro Fertilizers reaffirmed its commitment to the Gas Pressure Enhancement Facilities (PEF) project, collaborating with other major fertilizer manufacturers to develop and install pressure enhancement facilities at gas suppliers’ delivery nodes to sustain the current level of gas pressure.
