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.
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.
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
|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%|
|Selling and Distribution Expenses||935,513||917,158||2.00%|
|Other Operating Expenses||162,780||10,184||1498.39%|
|Loss before Taxation||(650,390)||(297,640)||118.52%|
|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%|