Engro Holdings Ltd. (ENGROH): 1QCY25 Result Review — Fertilizer weakness drags earnings; payout skipped - By AKD Reseach

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Engro Holdings Ltd. (ENGROH) announced its 1QCY25 results, reporting consolidated earnings of PkR1.8bn (EPS: PkR1.47) compared to PkR4.0bn (EPS: PkR3.34) in SPLY, down 56% YoY. The said decline is primarily attributed to sluggish performance of the fertilizer business. However, earnings were below our expectations due to higher-than-expected taxation; additionally, company skipped dividend payout, against our expectation of PkR3.0/ sh.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Fertilizer business (EFERT) reported 63%YoY decline in earnings to PkR2.9bn in 1QCY25, primarily attributed to 58%/71%YoY drop in offtakes and 6.8x YoY surge in finance cost. However, gross margins improved by 12ppts YoY,...