FFC posts 32% profit growth, Rs8.50 dividend declared

April 29, 2026 (MLN): Fauji Fertilizer Company Limited (PSX: FFC) reported a robust 31.62% year-on-year expansion in profit for the period for the three months ended March 31, 2026, recording Rs17.48bn compared to Rs13.28bn in the corresponding period last year.

The company's earnings per share (EPS) climbed 30.12% to Rs12.14, up from Rs9.33 in Q1CY25, showing meaningful value accretion for shareholders during the period.

The primary driver of this profit expansion was higher fertilizer sales volumes across both urea and DAP segments, supported by rising international fertilizer prices and strong market share gains, which powered broad-based top-line growth during the quarter.

FFC's net turnover posted a 49.75% year-on-year increase, rising to Rs95.29bn from Rs63.64bn, driven by strong offtake across both product segments.

The company's urea offtake reached 601,000 tonnes against 538,000 tonnes in the corresponding period, improving urea market share by 9% to 58%, while DAP sales surged to 182,000 tonnes from 88,000 tonnes, lifting DAP market share to 63% from 59% last year.

The company produced 654,000 tonnes of urea compared to 629,000 tonnes in the same period last year.

Cost of sales grew at a faster pace of 61.43% to Rs66.17bn from Rs40.99bn, outpacing revenue growth and compressing the gross level.

Despite this, gross profit expanded 28.61% to Rs29.13bn from Rs22.65bn, providing a solid earnings foundation. After distribution costs of Rs7.75bn, operating result grew 29.14% to Rs21.37bn from Rs16.55bn.

Below the operating line, other income expanded by 43.30% to Rs10.67bn from Rs7.45bn, driven in part by dividend payouts from associated companies rising to Rs6.80bn from Rs2.80bn in Q1FY25, emerging as a significant positive contributor.

Finance costs rose 27.79% to Rs2.17bn while other expenses grew 11.80% to Rs2.12bn.

Profit before income tax and final tax stood at Rs27.76bn, a 36.03% increase from Rs20.40bn in Q1FY25.

Final taxes and levies declined sharply by 98.11% to Rs0.13m, providing meaningful relief. Profit before income tax consequently reached Rs27.76bn, a 36.08% expansion from Rs20.40bn. Provision for taxation rose 44.38% to Rs10.28bn from Rs7.12bn.

In recognition of the strong quarterly performance, the Board of Directors has recommended an interim cash dividend of Rs8.50 per share, equivalent to 85%, payable to members on the register at the close of business on May 11, 2026.

On a consolidated basis, FFC recorded a profit after taxation of Rs19.90bn, up from Rs17.60bn in the corresponding period last year.

After accounting for taxation, Fauji Fertilizer Company Limited closed the quarter with a profit for the period of Rs17.48bn, representing a 31.62% expansion over the Rs13.28bn reported in the corresponding period of last year.

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