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 31st 2018 |
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| 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% |
