Karachi, April 27, 2020: Fauji Fertilizer (FFC) announced its 1Q2020 financial result today, where the company booked a consolidated profit of Rs4,286 million (EPS: Rs3.37) compared to Rs1,875 million (EPS: Rs1.47) in 1Q2020.
Alongside result, the company announced cash dividend of Rs2.5/share.
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Revenue of the fertilizer business increased by 2 percent YoY during 1Q2020, where higher volumetric sales of Urea by 5 percent YoY covered for lower prices.
However, DAP sales remained under pressure; down 32 percent YoY in 1Q2020.
Gross margin of the fertilizer business increased by 7 points YoY to 36.3 percent in 1Q2020 from 29.4 percent in 1Q2019, which is in line with our estimate.
The finance cost increased substantially by 29 percent YoY to Rs857 million in 1Q2020 amidst higher interest rates.
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Company has booked Share of profit from associate and JV of Rs2 million vs. a loss of Rs667 million, which is higher than our estimate. Effective tax rate clocked in at 28 percent in 1Q2020 vs. 39 percent in 1Q2019.
