KARACHI: Engro Foods has announced Rs561 million profit-after-tax (PAT) for fourth quarter of calendar year 2015with earnings per share (eps) at Rs0.73, down 12pc year-on-year and taking full-year PAT to Rs3.16 billion (eps: Rs4.13), up 3.5 times year-on-year.
The results came in significantly below consensus due to 574 basis points sequential drop in gross margins to 17.4pc in fourth quarter of the corresponding year against 16.8pc of the same period in 2014.
Yusra Beg at Intermarket Securities highlighted key features for 4QCY15 as 5pc year-on-year sequential drop in revenue to Rs12.17bn, however, up by a nominal 2pc year-on-year; 574bps drop in GMs to 17.4pc against 22.57pc in 3QCY15 and 16.8pc in 4QCY14. Among other line items, distribution and admin costs declined, while finance cost also decreased to Rs122m (down 38pc quarter-on-quarter).
