FFC declares Rs14.5/share dividend

July 29, 2026 (MLN): Fauji Fertilizer Company Limited (PSX: FFC) reported a solid 12% increase in its consolidated net profit for the six months ended June 30, 2026 (1HCY26), reaching Rs42.42bn compared to Rs37.95bn in the corresponding period last year.

Alongside the financial results, the company announced a cash dividend of Rs14.50 per share.

Reflecting this steady bottom-line growth, the company's basic and diluted earnings per share (EPS) attributable to equity holders improved to Rs29.05 from Rs26.06 in 1HCY25.

The performance unfolded against an uncertain business environment marked by regional geopolitical pressures on energy markets and commodity prices.

Despite these macro headwinds, focused marketing, distribution efforts, and uninterrupted product availability propelled urea sales in Q2 compared to Q1 2026.

Production Trends: FFC's Goth Machhi and Mirpur Mathelo plants produced 1,262 thousand tonnes of Prilled Urea during the period, up 3% year-on-year. However, Granular Urea output at Port Qasim fell to 155 thousand tonnes (from 192 thousand tonnes), while Sona DAP production dropped 6% to 369 thousand tonnes due to gas curtailment and regional phosphoric acid supply constraints.

Offtake & Market Dominance: Total Urea offtake surged by 25% to 1,404 thousand tonnes (up from 1,122 thousand tonnes), driving FFC's Urea market share up sharply to 56% from 48% previously.

DAP Expansion: DAP sales (including imports) grew to 318 thousand tonnes from 288 thousand tonnes, expanding its DAP market share by 3% to 66%. Overall product revenue swelled to Rs200bn from Rs155bn in 2025, primarily on the back of these higher sales volumes.

On a consolidated level, FFC’s net turnover posted a 26% year-on-year increase, rising to Rs230.13bn from Rs182.29bn. Although direct costs grew by 29% to Rs154.53bn, the strong volume expansion drove a 20% growth in gross profit to Rs75.60bn.

Administrative and distribution expenses rose 18% to Rs20.96bn to support business expansion.

Finance costs grew 18% to Rs4.50bn, while other income ticked down slightly to Rs9.66bn and the share of profit from associates/JVs declined 16% to Rs11.16bn.

Despite non-operating pressures, strong core gross profit gains pushed profit before tax up 10% to Rs65.85bn.

After absorbing Rs23.43bn in taxation provision, Fauji Fertilizer Company Limited closed the half-year with a consolidated net profit of Rs42.42bn, reflecting improved core profitability and sustained performance across subsidiaries.

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