Engro Fertilizers profit falls 16%, declares Rs1.75 dividend

July 30, 2026 (MLN): Engro Fertilizers Limited (PSX: EFERT) recorded a 16% decline in its net profit for the six months ended June 30, 2026, with profit for the period falling to Rs7.12m from Rs8.46m in the corresponding period last year.

Showing this softer bottom-line, the company's earnings per share (EPS) contracted to Rs5.33 from Rs6.34 in 1HCY25.

The top-line came under pressure, with net sales declining 12% year-on-year to Rs70.85m from Rs80.69m in the prior period.

Cost of sales fell in near-equal proportion at 13% to Rs47.30m, though gross profit still declined 11% to Rs23.56m from Rs26.53m showing the impact of lower offtake or pricing on the overall margin.

On the expenditure side, selling and distribution expenses rose 8% to Rs7.17m, moving against the revenue trend. Administrative expenses were cut by 16% to Rs2.53m, showing meaningful cost discipline.

Other operating expenses declined 37% to Rs1.08m, and other income fell by half to Rs795,198 from Rs1.60m. Finance cost increased 15% to Rs3.29m from Rs2.86m, adding further pressure.

A notable positive development was the emergence of other gains, which surged to Rs1.83m from Rs192,799 an increase of nearly ninefold.

This was primarily driven by a remeasurement gain on provision for SIDC net of Rs1.80m, absent in the prior period. Gain on subsidy receivable from the Government of Pakistan declined 86% to Rs26,521.

These combined dynamics pulled profit before taxation down 14% to Rs12.11m from Rs14.15m. Taxation declined 12% to Rs4.996m from Rs5.68m, though the proportional tax saving was insufficient to fully offset the pre-tax decline, resulting in the 16% fall in profit for the period.

The Board of Directors has announced an interim cash dividend of Rs1.75 per share (17.5%) for the quarter ended June 30, 2026.

This is in addition to the interim dividend of Rs2.00 per share (20%) already paid, bringing the total cash dividend declared for 1HFY26 to Rs3.75 per share.