AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Islamabad, February 18, 2015 (PPI-OT): Engro Corporation today announced its year end results showcasing a strong performance in key businesses. However, on a consolidated basis the stellar performance of fertilizer and commodity trading businesses were kept in check by a challenging business environment in its rice, polymer and foods businesses.
Overall, Engro Corporation had another great year running with record revenue of PKR 175,958million vs. PKR 155,360million in 2013 on a consolidated basis, achieving a 13% YoY top line growth. Despite the challenges posed in some of its key businesses, the Company posted a consolidated profit-after-tax (attributable to owners) of PKR 7,007 million as opposed to PKR 7,818 million during 2013.
Profitability was driven by Engro Fertilizers which had an astounding year on the back of 2-plant operations owing to continued gas supply throughout the year. However, the profitability was marred due to losses in rice business owing to lower international rice prices coupled with unprecedented PKR: USD appreciation earlier in 2014.The Company also announced a final cash dividend of PKR4/share for the year ended December 31, 2014.
Engro Eximp was able to achieve healthy trading margins, despite the volatility in the international commodity prices due to correctly timing the purchases when international market prices were low.
Engro Foods reported growth of 14% in its consolidated revenues which was a direct result of effective investment on brands and efficient product mix management throughout 2014.
Gross margin declined from 22% to 19% on account of higher milk prices which were not passed on to consumers in the competitive market environment. Engro Foods has recorded an impairment charge of PKR 596 million on sale of its Canadian operations. During the year, the Company achieved highest ever UHT market share of 56% in December 2014 as compared to 48% in December 2013.
The energy and the chemical storage business – Engro Powergen and Engro Vopak – continued to perform in line with their stable business models. Petrochemicals business – Engro Polymer and Chemicals – in line with the bearish global commodity prices, also suffered losses due to declining Ethylene-PVCprice delta and was further adversely affected by the imposition of 5% regulatory duty on its imports of Ethylene and EDC during June 2014 which increased its raw materials costs.
Engro Corporation’s newest venture – the fast-track LNG terminal is on schedule to achieve commissioning by its due date in 2015. With improved profitability, the Group also managed to de-leverage its balance sheet by implementing its cash sweep to lenders well ahead of the agreed timeline in the terms of restructuring.
Engro Corporation is well positioned to play its role in creating inclusive growth for the Country while working on high impact areas of the economy such as the energy sector through its involvement with the Thar coal and the LNG import terminal projects.
For more information, contact:
Shamikh Ahmed
Engro Corporation Limited
8th Floor, Harbour Front Building, HC # 3,
Marine Drive, Block 4, Clifton
Karachi, Pakistan
Phone: +92-21-111-211-211
Fax: +92-21-35295948
Cell: +92-302-8275133
Email: sazaidi@engro.com, media.relations@engro.com
Website: www.engro.com