Fauji Fertilizer Company (FFC) reported a 45% increase in net profit for Q3 2024, reaching Rs22.59 billion, up from Rs15.62 billion in Q3 2023. This rise is attributed largely to a decrease in cost of sales. The company’s earnings per share (EPS) improved to Rs17.51, compared to Rs11.92 a year ago, while turnover increased to Rs57.72 billion from Rs52.20 billion in the prior year. Cost of sales declined significantly, dropping from Rs32.62 billion to Rs27.04 billion, contributing to the higher profit margin.
For the nine months ending September 30, FFC’s net profit reached Rs60.27 billion, up from Rs36.39 billion last year, with a year-to-date EPS of Rs46.71, compared to Rs27.89 in the same period of the previous year.
Despite strong financial performance, FFC’s Board of Directors announced a nil cash dividend for Q3 2024, citing plans to ensure equitable distribution in light of an ongoing merger. The board remains committed to resuming dividends once the amalgamation is finalized.
The company’s gross profit for the quarter surged 57%, reaching Rs30.68 billion, and profit margins improved to 53.15%. Additionally, FFC’s ‘other income’ grew by 19% to Rs5.63 billion, while finance costs decreased by 16% to Rs1.40 billion. Other expenses rose by 60% to Rs2.1 billion, while the company’s profit share from associates and joint ventures nearly doubled to Rs7.45 billion.
Highlighting its support for local farmers, FFC noted that it sold Sona Urea at prices below international levels, offering an estimated $320 million in savings and conserving foreign currency reserves for Pakistan.
This financial performance, shared with the Pakistan Stock Exchange, reaffirms FFC’s position as a market leader in the fertilizer sector.
