Fauji Fertilizer Company (FFC) Limited, Pakistan’s largest urea manufacturing company, has announced its financial result for Q2 2020.
FFC booked a consolidated profit of Rs. 5.49 billion in the Q2-2020, down by 18.42% compared to Rs. 6.73 billion earned in the same period last year. This takes its half year’s profits to Rs. 9.78 billion, up by 13.72% as compared with Rs. 8.60 billion in Q2 2019.
The decline in profitability was due to lower DAP offtake and lower fertilizer prices.
Alongside the financial results, the company also announced a cash dividend of Rs. 2.75 per share. This is in addition to the interim dividend already paid at Rs. 2.50 per share.
The company’s sales saw a decrease of 8.80% to Rs. 25.15 billion versus Rs. 27.57 billion recorded last year. According to a report by Topline Securities, the revenue went down amidst the decline in DAP offtake by 57% year on year to 26,000 tons in Q2 2020 compared to 61,000 tons in Q2 2019.
It added that urea sales were up by 9% to 681,000 tons in Q2 2020 as compared to 623,000 tons in the same period of 2019. The gross margins of the company declined by 1.8% year on year to 32% from 33.8% in Q2 2019.
During the quarter, the finance cost of the company decreased by 22.80% to Rs. 640.62 million as compared to Rs. 829.39 million, due to lower borrowing and interest rates.
Earnings per share of the company decreased to Rs. 4.32 as compared to Rs. 5.29 in the previous year.
The company proactively engaged with the provincial governments for continuity of the fertilizer supply chain to ensure food security in the country.
FFC’s shares at the bourse closed at Rs. 112.49, up by Rs. 1.51 or 1.36% with a turnover of 1.30 million shares on Monday.