Karachi, April 28, 2011: Engro Corporation Limited has announced financial results (consolidated and stand alone), for the first quarter ended, March 31, 2011,
Overview of 2010
Engro Corp’s consolidated revenue recorded an increase of 29.5% and stood at Rs 21.8 billion for the first quarter 2011, as compared to Rs 16.9 billion in the same period last year, while net profit (attributable to equity holders of the holding company,) increased to Rs 2.054 billion in 1Q 2011, from Rs 1.889 billion in 1Q 2010. The Company announced an EPS of Rs 5.21 (basic) for the 1Q 2011.
In the first quarter of 2011, the fertilizers business produced 232 Ktons of urea, and sold 243 Ktons of urea, maintaining a 20% share of the fertilizer market as compared to 18% in 1Q 2010. The business made a net profit of Rs. 1,397 million for the three months ended March 31, 2011, an 81% growth over the profit of Rs. 773 million for the same period last year
The fertilizer trading business, managed by Engro Eximp, sold 46 Ktons of phosphatic fertilizers in 1Q 2011, capturing 27% of the market share. The business earned a profit of Rs 164 million for the three months ended March 31, 2011 as compared to a profit of Rs 897 million for the same period last year. In 1Q 2010, the business had benefited from a price upturn, resulting in high margins for previous inventory.
The foods business had a turnover of Rs 6.4 billion during the first quarter of 2011 compared to Rs 4.7 billion for the corresponding period last year. UHT sales were up by 19% driven largely by the growth of Tarang, with new flavors of Owsum milk also added to the portfolio during 1Q 2011. Olfrute Juices & Nectars were re-launched during the period, in addition to Omore ice cream being launched in Karachi. The foods business made a net profit of Rs 117 million in 1Q 2011 as compared to a net loss of Rs 15 million for the same period last year.
The rice trading business, managed by Engro Eximp, exported 1,524 tons of rice during 1Q 2011, as compared to 992 tons in the same period last year.
The petrochemicals business had an increase in domestic PVC sales to 29 Ktons in 1Q 2011, as compared to 22 Ktons in the corresponding period last year, with increased production by the business resulting in a decline of imported PVC resin. Engro Polymer & Chemicals Limited incurred a loss of Rs 59 million for the three months ended March 31, 2011, compared to a loss of Rs 154 million in 1Q 2010.
Energy & Power
The business’s power plant in Qadirpur dispatched 99.6% of its installed capacity to the national grid during the first quarter, declaring a net profit of Rs 349 million for the three months ended, March 31, 2011.
In the industrial automation sector, Avanceon Limited posted a consolidated loss of Rs 9 million as compared to a loss of Rs 64 million during the same period last year.
In the chemical storage and terminal business, Engro Vopak Terminal Limited had smooth operations in the quarter and posted a profit of Rs 239 million, as compared to a profit of Rs 264 million during the same period last year.