Engro Corp's profit soars 28% to Rs30.3b

Company also announces final cash dividend of Re1 per share

KARACHI: Engro Corporation reported a 28% jump in its consolidated profit to Rs30.3 billion in the year ended December 31, 2019.

The company had announced earnings of Rs23.6 billion in the previous year, according to a notice sent to the Pakistan Stock Exchange on Friday.

The board of directors also recommended a final cash dividend of Re1 per share ie 10% for the period. It was in addition to the interim dividend of Rs23 per share ie 230% that had already been paid, according to the notification.

Meanwhile, earnings per share stood at Rs28.69 for 2019 compared to Rs22.06 in the previous year.

"The earnings came in lower than expected owing to an impairment charge on its associated company FrieslandCampina Engro Pakistan Limited (FCEPL) (previously Engro Foods) and higher finance cost," said Topline Securities' analyst Sunny Kumar.

Engro Corp’s profit surges 23% to Rs21.9b

"Among the subsidiaries, Engro Fertilisers' earnings increased by 23% year-on-year to Rs6.36 billion during 4QCY19 amid higher retention prices of urea."

Topline of the company increased by 31.7% to Rs225.9 billion while administrative and other operating expenses also showed a hike.

Other operating expenses were up 53.6% to Rs8.5 billion on account of a non-cash charge of Rs1.2 billion relating to impairment charges on its investment in FrieslandCampina Engro Pakistan Limited.

Other income increased 49% to Rs13.7 billion and finance cost surged 170% to Rs14.8 billion in the period under review.

Engro Corporation's share price decreased Rs9.45 or 2.82% to close at Rs325.26 with a turnover of 1.07 million shares at the Pakistan Stock Exchange.

Published in The Express Tribune, February 22^nd, 2020.

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