AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Engro Fertilizers reported a mixed set of financial results for the third quarter of 2025, revealing a 32% year-on-year decline in earnings per share (EPS) to Rs4.35. The company also declared a cash dividend of Rs4.50 per share, which fell short of industry expectations.
Engro Fertilizers’ consolidated quarterly profits were reported at Rs5.8 billion, marking a 4% increase from the previous quarter. However, the company’s nine-month earnings for 2025 saw a 21% decrease year-on-year, amounting to Rs14.3 billion.
The company’s gross margins for the third quarter stood at 32.6%, slightly below the anticipated 35.6%. This was an improvement from the 31.2% recorded in the same period last year. Over the first nine months of 2025, gross margins improved to 33% compared to 25% in the same period of the previous year.
Net sales for the third quarter decreased by 7% year-on-year to Rs54.7 billion. The decline was attributed to lower retention prices and reduced DAP sales. However, a 13% increase in quarterly sales was noted, driven by a 37% rise in urea offtakes.
Selling and distribution expenses surged by 166% year-on-year to Rs5.3 billion in the third quarter. The increase was largely due to higher product handling costs amid elevated inventory levels.
Other income saw a marginal decrease of 1% year-on-year, amounting to Rs1.3 billion. This decline was due to reduced cash balances and a fall in interest rates.
The company’s finance cost rose by 40% year-on-year to Rs0.5 billion, attributed to an increase in long-term debt. However, it fell by 58% on a quarterly basis.
Tax expenses for the third quarter were reported at Rs3.7 billion, reflecting an effective tax rate of 39.3%.
Despite the lower-than-expected results, analysts maintain a positive outlook on Engro Fertilizers, citing a current stock trading at a 2026 estimated price-to-earnings ratio of 11.9 and a dividend yield of 8.0%.