Karachi: Engro Fertilizers Limited has announced its financial results for the year ending December 31, 2024, showing a noteworthy performance despite facing operational hurdles. The Board of Directors approved the audited financial results in a meeting held on February 7, 2025. The company declared a total cash dividend of Rs. 21.50 per share, including a final cash dividend of Rs. 8.00 per share.
Engro Fertilizers reported a consolidated profit after tax of PKR 28.30 billion for 2024, reflecting an increase from the PKR 26.20 billion recorded in the previous year. This rise in profit resulted in a higher earnings per share (EPS) of PKR 21.16 compared to PKR 19.61 in 2023. The company attributed this growth to cost optimization and efficient plant operations.
A major operational challenge during the year was the 55-day turnaround of the Enven Plant, the largest in the company's history, aimed at ensuring long-term reliability. As a result, urea production fell by 8% to 2,139 KT from 2,313 KT in 2023, and urea sales decreased by 13% to 2,026 KT compared to 2,327 KT in the previous year. Despite these setbacks, the company managed to increase its sales revenue by 14.7%, thanks to a rise in urea prices. However, the cessation of concessionary gas supply led to a decline in gross margins to 28%, down from 32% last year.
In a significant move, Engro Fertilizers launched "UgAi," Pakistan's first integrated agri e-commerce platform, allowing farmers to purchase fertilizers directly at official prices. The company also contributed nearly PKR 54.50 billion to the National Exchequer through taxes, duties, and levies, up from PKR 34.70 billion in 2023. According to information available from the Pakistan Stock Exchange (PSX), this performance places Engro Fertilizers in a robust position within the market.
The company's financial statements reveal a total asset base of PKR 170.60 billion, an increase from PKR 160.84 billion in 2023. Non-current assets, including property, plant, and equipment, rose to PKR 83.14 billion, while current assets stood at PKR 77.99 billion. Total equity at year-end was PKR 47.46 billion, slightly lower than the PKR 47.90 billion recorded in the previous year.
Engro Fertilizers' cash flows from operating activities resulted in a slight net cash outflow of PKR 253.09 million, primarily due to higher taxes paid. The company generated PKR 5.45 billion from investing activities, with substantial proceeds from the sale of investments offsetting expenditures on property and equipment. Financing activities saw a net cash outflow of PKR 11.75 billion, driven by substantial dividend payments and repayment of borrowings.
The company's 16th Annual General Meeting is scheduled for March 24, 2025, in Karachi, with the shareholder register closing from March 18 to March 24, 2025. Shareholders on record as of March 17, 2025, will be eligible for the final cash dividend payment and participation in the AGM. The annual report will be made available on the company's website at least 21 days before the AGM.