Fauji Fertilizer Posts Rs. 6.24 Billion Profit in Q1 2022

Pakistan’s largest urea manufacturing company, Fauji Fertilizer Company (FFC) Limited, has posted a profit after tax of Rs. 6.24 billion for the quarter that ended on March 31, calendar year (CY) 2022.

According to the company’s financial results, profit after tax saw an increase of 7 percent year-over-year (YoY), as compared to Rs. 5.815 billion in the same period last year. Along with the result, FFC announced an interim cash dividend of Rs. 3.70 per share for the quarter, higher than the industry expectations.

Net sales of the company increased by 22 percent YoY to Rs. 26.315 billion during 1QCY22 from Rs. 21.539 billion in the same period last year on account of higher urea offtake, and a surge in urea and DAP prices by 13 percent and 96 percent, respectively. On a quarter-on-quarter (QoQ) basis, net sales plummeted by 25 percent.

Gross margins of the company went down by 3.51 percent YoY to 35.6 percent during the period in review. Conversely, margins improved by 2.75 percent on a QoQ basis due to better urea prices and margins.

Gross profits increased by 11 percent to Rs. 9.36 billion from Rs. 8.43 billion in the same period last year. The other income of the company went up by 27 percent to Rs. 3.46 billion as compared to Rs. 2.72 billion due to higher income from cash and cash equivalents.

During the quarter, the company’s financing cost increased by 155 percent YoY to Rs. 1.07 billion due to higher interest rates and an increase in short-term borrowings.

The earnings per share of the company were reported at Rs. 4.90 during the quarter, as compared to Rs. 4.57 in the same period last year.