Fauji Fertilizer Company (FFC), Pakistan’s leading fertilizer producer, reported a consolidated profit-after-tax of Rs22.59 billion for the quarter ending September 30, 2024, a nearly 45% increase from Rs15.62 billion in the same period last year.
In an announcement to the Pakistan Stock Exchange (PSX) on Monday, FFC stated that its board of directors met on October 28, 2024, to review the company’s financial and operational performance.
Despite strong earnings, the board opted not to issue any cash dividends this quarter, citing ongoing merger discussions and the need for equitable dividend distribution among shareholders in the merged entity. FFC assured investors that dividend payouts would resume once the merger process is completed.
For the quarter, FFC’s earnings per share (EPS) rose to Rs17.51, up from Rs11.92 last year, while revenue grew by 11% to Rs57.72 billion. Gross profit surged nearly 57% to Rs30.68 billion, boosting the profit margin to 53.15% from 37.5% the previous year. The company also saw a 19% rise in other income, reaching Rs5.63 billion.
On the expense side, finance costs declined by around 16% to Rs1.40 billion, down from Rs1.66 billion last year, though other expenses increased by nearly 60% to Rs2.1 billion. Additionally, FFC’s share of profit from associates and joint ventures almost doubled, reaching Rs7.45 billion.
FFC noted that it continued to sell Sona Urea at below international prices, providing an estimated $320 million benefit to local farmers and helping to preserve Pakistan’s foreign currency reserves.
