Fauji Fertilizer Bin Qasim Limited (FFBL) Friday announced its financial result for 1HCY23 where the company posted a loss after tax of Rs. 4.950 billion compared to a net profit of Rs. 3.410 billion in 1HCY22.
According to the company’s financial results for the period ended June 30, 2023, posted a loss per share of Rs. 3.83 during the period under review compared to earnings per share (EPS) of Rs. 2.64.
On a quarterly basis, the company reported earnings of Rs. 479 million (EPS of Rs. 0.37), down by 73 percent year-on-year (YoY) during 2QCY23.
The company’s net sales declined by 6 percent YoY to Rs. 66,758 million during 1HCY23 amid a fall in urea and DAP offtake by 23 percent and 11 percent YoY, respectively. Meanwhile, urea and DAP prices reported a 44 percent and 6 percent increase, respectively, in 1HCY23. In 2QCY23, the topline came in at Rs. 35,235 million, down by 24 percent YoY due to a plunge in urea and DAP offtake by 21 percent and 24 percent YoY, respectively.
Gross margins clocked in at 12.90 percent in 2QCY23 (down by 615bps YoY), due to lower DAP sales coupled with the usage of expensive fuel for the urea plant due to an outage at FFBL Power Company Limited (FPCL).
Other income of the company declined by 21 percent YoY to Rs. 3.439 million in 1HCY23 at the back of lower income from cash and cash balances. Whereas, the other income in 2QCY23 declined by 22 percent YoY, arriving at Rs. 2,541 million due to the aforementioned reason.
The financial charges climbed up by 3.3x YoY, clocking in at Rs. 5,325 million during 1HCY23. Meanwhile, the financial charges during 2QCY23 ascended by 3.1x YoY due to the same reason.
The company booked effective taxation at 76 percent in 2QCY23 compared to 72 percent in 2QCY22. It is pertinent to note that the company booked super tax of 6 percent and 10 percent on profit before tax of CY22 and 1HCY23, respectively.
During 1HCY23, the company received 6,489 mmcf gas, down by 33 percent YoY. In addition to this, the DAP plant was also shut down for 33 days during the 1HCY23. Both these factors resulted in lower urea and DAP production.
