Fauji Fertiliser Bin Qasim Limited (FFBL) has reported a net profit of Rs. 6.03 billion for the year ended December 31, 2021, showing an increase of 192% compared to a net profit of Rs. 2.19 billion for the calendar year (CY) 2020.
According to the company’s financial results announced on Wednesday, in 2021, the company’s net sales clocked in at Rs. 110.45 billion, up by 33 percent YoY compared to Rs. 83.23 billion.
The fertilizer manufacturer posted a profit after tax (PAT) of Rs. 241 million in 4QCY21 compared to PAT of Rs. 3.09 billion in 4QCY20, down by 92 percent year-on-year (YoY). The gross margins clocked in at 18 percent in 4QCY21 (down by 367bps YoY), which was attributed to lower DAP margins on YoY basis.
The company recorded other operating expenses of Rs. 296 million in 4QCY21 owing to a higher contribution to WPPF and WWF. With this, the total other expenses during CY21 surged by 717 percent YOY, arriving at Rs. 2.55 billion as compared to Rs. 311 million.
Other income was reduced by 6 percent YoY to Rs. 895 million in 4QCY21 given a fall in dividend income from subsidiaries and income on cash and cash equivalents. With this, the other income in CY21 reached Rs. 9.11 billion, up by 76 percent compared to Rs. 5.18, on account of fain on sales of Foundation Wind Energy I & II tagged with higher dividend income from FFBL Power Company Limited, Askari Bank and Pakistan Maroc Phosphore.
The company allowed for expected credit losses of Rs 1.903 billion during 4QCY21, which was related to Fauji Meat Limited. This took the expected credit losses to Rs. 4.25 billion in CY21, up by 17 times as compared to Rs. 232 million in 2020.
Earnings per share of the company were reported at Rs. 4.96 compared to Rs. 2.12.
FFBL’s scrip at the bourse was closed at Rs. 24.23, down by Rs. 1.96 or 7.48 percent, with a turnover of 4.77 million shares on Wednesday.