Karachi: Engro Fertilizers Limited has reported a revenue decline in the first half of 2025 compared to the same period in 2024, as revealed during a corporate briefing session held on August 5, 2025. The company attributed this downturn to reduced sales volumes of Urea and DAP, which were affected by an oversupplied market and challenging farmer economics.

Despite the revenue decrease, Engro Fertilizers Limited experienced a Big move in gross profit, citing the absence of the EnVen turnaround costs and imported urea expenses as contributing factors. This improvement, alongside effective cost management measures, helped enhance the net profit margin to 10% compared to 8% in the previous year. The company acknowledged that higher financial charges and inventory holding costs had exerted some pressure on the net profit margin.

The briefing also highlighted an increase in the gearing ratio to 57% from 42% as of December 2024. Engro Fertilizers Limited explained that the rise in short-term borrowings was primarily due to high working capital requirements. Despite this increase, the company's Debt to EBITDA ratio of 1.02, compared to 0.87 in the first half of 2024, remained at healthy levels.

According to information available from the Pakistan Stock Exchange (PSX), the market has been closely monitoring these developments, reflecting the company's strategic financial adjustments amid challenging market conditions. Engro Fertilizers Limited continues to navigate the pressures of an oversupplied market while leveraging its effective cost management strategies to sustain profitability.