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president’s message

By the grace of God, I am humbled to report that 2019 has been another incredible year of accomplishments and accolades for Engro. I am pleased to share that the Group has delivered strong business results and has demonstrated operational excellence. It is my pleasure to share with you the highlights of Engro Corporation’s performance in 2019 and the deliberate effort we are making to ensure a sustainable operating model.

Engro Corporation posted a consolidated profit after tax of PKR 30.3 billion for 2019, up from PKR 23.6 billion the previous year. On a standalone basis, our profit was PKR 14.3 billion, our earnings per share were PKR 24.83, and our total dividends were PKR 24 per share for the year. This translated into an overall dividend payout of 96.7%.

Our success would not have been possible without the trust and support of our Board, our leadership, our employees, and our shareholders. Hence, before all else, I would like to thank the entire Engro family for their crucial role in embodying Engro’s purpose of solving some of Pakistan’s most pressing issues.

We have had a strong year despite macroeconomic volatility. This demonstrates our capability to be a resilient and agile Organization. I am pleased to share that Engro Fertilizers achieved the highest ever production of over 2 million tons and demonstrated our resolve to improve food security in Pakistan. In our Energy business, we took a key step towards ensuring energy security for Pakistan. Our Thar coal mine and power project declared Commercial Operations, proving our ability to deliver large scale projects that enable development for the people of Pakistan. We also achieved the fastest 200 ship-to-ship transfers, setting a global record across all terminals in the world. We believe that our Polymer business has the potential to not only fulfill growing domestic demand, but also enhance the Country’s exports. In our effort to enhance digital access across the Country, we launched Enfrashare which has forged strategic partnerships with all major telecom providers. To remain agile in rapidly changing times, we have embarked on Organization-wide centralized initiatives. 2019 marked the year in which we rolled out Engro’s Central Idea which has become the reference point on our future direction. Staying true to our core value of putting our people first, we implemented a world-class human capital transformation project. We have initiated a Cost Excellence Program to bring our cost structures in line with international best practices and realize significant savings. To achieve higher business efficiencies, we invested in OneSAP to bring technology to the centre of our key operations.

I am delighted to acknowledge that all our businesses have been consistently recognized with numerous local and global awards. Both Engro Corporation and Engro Fertilizers were recognized by the Pakistan Stock Exchange among the PSX Top 25 companies of Pakistan. The CFA Society of Pakistan recognized us for our strong investor relations, and the United Nations Global Compact awarded us, second year in a row, for Living the UNGC Business Sustainability Award.

Among our milestones for 2019 is our ceremonious partnership with the Quetta Gladiators, who emerged as the Champions of PSL 2019. We are thrilled to continue this victorious partnership for another season. As we march ahead into the new decade, Engro will stay true to its commitment to Pakistan by striving to play a meaningful role in solving some of its most pressing issues. We will continue to be the conduit of sustainable business practices by keeping the interest of our communities at the forefront of our operations.

Once again, I would like to thank the Chairman, Vice Chairman, and Board of Directors for their invaluable guidance, our stakeholders for trusting us, and the entire Engro family for its undeniable contribution through sheer hard work and dedication, working every day towards the betterment of our economy and citizens of this Country.

Ghias Khan

President & Chief Executive Officer

Engro Corporation Limited