Karachi, July 29, 2010: Engro Corporation Limited (formerly Engro Chemical Pakistan Limited) has announced financial results (consolidated and stand alone) for the first half ended, June 30, 2010. The Company announced an EPS of Rs 10.37 for the first half ended June 30, 2010, and an interim dividend of Rs 2 per share.
1Q 2010 Overview
Engro Corp’s consolidated revenue recorded an increase of 47 % and stood at Rs 34 billion for the first half 2010, as compared to Rs 23 billion in the same period last year, while net profit (attributable to equity holders of the holding company,) increased from Rs 1,055 million in 1H 2009 to Rs 3,398 million in this half.
The increase in revenue is mainly due to increase in sales of fertilizers, foods and energy while increase in profit is attributable mainly to higher Urea production, better phosphate margins, dairy volumes and margin and the Qadirpur power plant startup.
Near Term Outlook
In Engro Corp’s fertilizers business, urea demand / supply will witness a major change with the commencement of production of its expansion project, which will abate the need for fertilizer imports in the near future.
In the foods business, Engro Corp expects continued growth in all business segments, although imposition of Value Added Tax on milk may temporarily slow the pace of growth.
Demand for PVC and Caustic Soda is expected to be strong during coming quarters. Engro Polymers’ VCM plant is being ramped up, with stable operations of the plant being key for improved margins.
All other subsidiaries are expected to perform as per expectations.