Engro Corporation’s revenue up 92% in first-half

KARACHI: Pakistan’s premier conglomerate, Engro Corporation’s standalone revenue increased to Rs16.6 billion in the first half ended June 30, 2022, exhibiting a substantial growth of 92 percent, a statement said on Wednesday.

Higher revenue was primarily due to higher dividends received from Engro Polymer and Chemicals Limited (EPCL) and Engro Fertilisers Limited (EFERT), which, in turn, were driven by strong underlying business performance.

Resultantly, the company achieved a 29 percent higher profit-after-tax of R12.5 billion in the first half of 2022 against Rs9.7 billion in the same period of 2021, translating into an EPS of Rs21.66/share (2021: Rs16.81/share), it added.

On a consolidated basis, Engro Corporation’s revenue grew 27 percent to Rs177.5 billion during the period under review from Rs139.3 billion in the first half of 2021.

The company posted a profit-after-tax of Rs16.8 billion in the first half of 2022, which is 42 percent lower than Rs29.1 billion in the same period of 2021.

The profit after tax attributable to the shareholders is Rs7.4 billion, translating into an EPS of Rs12.87/share (first-half of 2021: Rs29.60/share).

Despite organic revenue growth, the imposition of super tax on the current and prior year earnings weighed on the conglomerate’s consolidated profitability.

Engro Corporation announced an interim cash dividend of Rs11/share for the year. This is in addition to the Rs12/share dividend that has already been announced during the year, bringing the cumulative payout to Rs23/share.