Fauji Fertilizer Bin Qasim Posts a Loss of Rs. 449 Million in Q1 2018

 

Fauji Fertilizer bin Qasim Limited (FFBL) has announced financial results for the three months period ending 31st March, 2018, reporting a loss of Rs. 449.379 million against losses worth Rs. 134.798 million last year.

The earnings per share of the company were also down to Rs. -0.48 as compared to the loss per share of Rs 0.14 in the corresponding period last year.

The company reported a decline in losses primarily on the back of improved Gross profit margins of its core fertilizer business to 7% versus -3% in the corresponding period of last year.

The earnings are below the expectations, likely due to lower than expected contribution from investments.


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During Q12018, the net sales of the company increased by 28.56% YoY to Rs 10.28 billion as compared to Rs 7.99 billion last year, due to 133% increase in Urea off-take, a rise in Urea and DAP prices and change in subsidy mechanism (earlier recorded in other income).

Gross profit saw a massive improvement as compared to the loss last year due to better pricing and commencement of the a power plant. The increase was on the back of a rise in UREA prices by 2.3% to Rs1310-1315 per bag.

Top-line recorded growth at 29%YoY due to improvement in total fertilizers off-takes by 8%YoY and higher fertilizer prices.

On the expenses front, FFBL reported a 2 %increase in Selling & Distribution Expenses, 37.88 percent decrease in Administrative Expenses, whereas, other operating expenses at the company jumped by 1498.39 percent during the period.

Other income of the company fell by 65% due to change in subsidy mechanism of the company.

FFBL’s share at the bourse closed at Rs 41.90, which was up by 5% with a turnover of 3.43 million shares.

Investment

Along with the result, FFBL has disclosed a further investment in Fauji Meat Limited of up to PKR 1.5 billion in equity and PKR 3.5 billion subordinated loan through a combination of 30:70 equity and debt.

Comparison of Key Financials
Unconsolidated Profit and Loss Account – For the Three Months Ended, March 31
st 2018
Key Financials March, 2018 March, 2017 % Change
  Amounts in PKR’ 000
Sales – net 10,282,860 7,998,759 28.56%
Cost of Sales 9,537,339 8,252,630 15.57%
Gross Profit/(Loss) 745,521 (253,871)  
Selling and Distribution Expenses 935,513 917,158 2.00%
Administrative Expenses 238,828 384,464 -37.88%
Finance Costs 419,272 477,375 -12.17%
Other Operating Expenses 162,780 10,184 1498.39%
Other Income 360,482 1,745,412 -79.35%
Loss before Taxation (650,390) (297,640) 118.52%
Taxation 201,011 162,842 23.44%
Loss after Taxation (449,379) (134,798) 233.37%
Other Comprehensive Income  
Total Comprehensive Loss (449,379) (134,798) 233.37%
Loss per Share – Basic and Diluted (0.48) (0.14) 242.86%

 


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