Fauji Fertilizer Company Limited (FFC) has announced an unconsolidated profit of Rs 8.52 billion for the nine months that ended in September 2018, up by 43.68% as compared with Rs5.93 billion earned during the same period last year, stated a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share of the company increased to Rs 6.70 from Rs 4.66.
In addition to this, FFC’s board of directors have recommended an interim cash dividend at Rs.1.8 per share (18.00%), in addition to the previously paid interim dividends at Rs.3.15 per share (31.5%).
The net sales have increased by 22% to Rs 70.67 billion as compared with Rs 57.75 billion in the same period last year while gross profits lept up by over 56% to Rs 18.11 billion mainly due to 11 percent higher urea offtake tagged with 12 percent higher urea prices during the period.
However, non-core income declined significantly during the nine months, as it came down to Rs 4.90 billion from Rs 7.11 billion with a decrease of 31.08%. On a sequential basis, profitability during the third quarter surged by 80% to Rs3.8 billion as compared with Rs2.11 billion.
While earnings per share improved from Rs1.66 in the same period last year to Rs2.99 in the current year.FFC net sales slid 1% YoY during 3QCY18 where urea offtake growth of 11% YoY was offset by 54% YoY decline in DAP sales during the period.
Higher domestic fertilizer prices resulted in 12pps YoY growth in gross margins, which clocked in at 31.3% during 3QCY18. Local urea and DAP prices were up 24% and 34% YoY.
Overall urea sales were recorded at 629K tons, down 7% with improved prices (adjusted to subsidy).
Profit from associates and JV were up 22% YoY to Rs1.4bn amid remarkable performance by Fauji Fertilizer Bin Qasim (FFBL).
FFC’s script at the bourse closed at Rs99.52, up by Rs2.33 with a turnover of 1.53 million shares on Friday.