Karachi, July 29, 2019: Fauji Fertilizer Company Limited (FFC) announced the financial result for 1HCY19 today where the company posted a profit after tax (PAT) of PKR 8.9 billion (EPS: PKR 7.00), up by 89 percent YoY from last year’s profitability of PKR 4.7 billion (EPS: PKR 3.71).
On a quarterly basis, PAT during 2QCY19 clocked-in at PKR 5.2 billion (EPS: PKR: 4.09), up 113percent YoY. Along with the result, the company announced an interim cash dividend of PKR 2.85/share taking half year payout to PKR 5.35/share (1HCY18: PKR 3.15).
Sales jumped up by 15 percent YoY during 2QCY19, given 23 percent and 11 percent YoY higher urea and DAP prices which offset a decline of 5 percent and 25 percent YoY in urea and DAP offtake, respectively.
Gross margins clocked-in at 33.8 percent (up by 10 points YoY) on account of higher prices during the quarter (urea prices +23 percent YoY, DAP +11 percent YoY).
Financial charges went up by 62 percent YoY to PKR 629 million due to higher interest rates during the period.
Other income dropped by 9 percent YoY to PKR 2.0 billion amid absence of urea subsidy.
The company booked effective taxation at 27 percent in 2QCY19 (2QCY18: 43 percent).