Fauji Fertilizer Company Limited (FFC) has announced its financial results for the six months that ended on June 30, 2023, (1HCY23), wherein the company posted a consolidated profit after tax of Rs. 20.76 billion, up 35 percent year-on-year (YoY) from Rs. 15.38 billion in the same period last year (SPLY).
Along with the result, the company has announced an interim cash dividend for the half year of Rs. 3.15 per share. In April-June, FFC’s profits surged by 83.3 percent YoY to Rs. 12.43 billion.
According to the company, the increase in profitability was because of significant cost optimization measures and operational efficiency enhancement initiatives implemented by the management.
In 1HCY23, the net sales of the company arrived at Rs. 82.5 billion, up by 33 percent YoY on the back of a surge in urea and DAP prices. Interestingly, gross margins clocked in at 46 percent on account of higher urea prices and lower DAP offtake.
The company claimed that the selling prices of urea varied significantly within the fertilizer industry, with FFC marketing urea at the lowest price of Rs. 2,565 per bag, compared to an average market price of around 3,000 per bag and international price of Rs. 5,700.
Other income has increased by 26.5 percent YoY to Rs. 6.83 billion amid higher interest rates. Also, the finance cost of the company surged by 33 percent YoY to Rs. 3.29 billion.
FFC paid Rs. 13.38 billion in taxes during the half-year in review.
The company posted earnings per share (EPS) of Rs. 15.97 in 1HCY23 and an EPS of Rs. 9.48 in 2QCY23.
The company’s scrip at the bourse was closed at Rs. 100.33, up 0.48 percent or Rs. 0.48 with a turnover of 1.24 million shares on Tuesday.
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