FFC sustains profitability at Rs63bn, declares dividend at Rs9.5/share

October 23, 2025 (MLN): Fauji Fertilizer Company Limited (PSX: FFC) has reported a consolidated profit after tax of Rs63.04bn for the nine months ended September 30, 2025, slightly lower by 0.6% compared to Rs63.43bn in the same period last year.

The company also recommended an interim cash dividend of Rs9.5 per share for the quarter.

FFC’s turnover rose 28.1% year-on-year to Rs322.5bn from Rs251.7bn in 9MFY24, supported by higher sales and the inclusion of Port Qasim Plant’s nine-month operations, compared to only a third-quarter contribution last year.

However, the cost of sales increased by 43.8% to Rs214.05bn, which limited the growth in profitability. The gross profit stood at Rs108.45bn, up 5.4%, with a gross profit margin of around 33.6% for the period.

Administrative and distribution expenses surged 33% to Rs27.6bn, while finance costs eased 5.5% to Rs5.55bn.

Other income dropped 24.8% to Rs14.39bn, showing reduced returns from non-core operations, and the share of profit from associates and joint ventures fell 25.1% to Rs17.41bn.

Consequently, profit before income tax came in at Rs98.83bn, down 7.6%, while taxation expenses declined 17.8% to Rs35.79bn, resulting in a net profit of Rs63.04bn for the nine-month period.

Earnings per share (EPS) stood at Rs43.3, compared to Rs43.8 in the same period last year.

Ensuring safe, efficient and reliable operations, FFC Plantsites produced 2,207 thousand tonnes of urea, achieving a capacity utilization of 113%, while DAP production reached 622 thousand tonnes at 128% utilization, reflecting strong plant efficiency and reliability.

The industry urea market contracted by 8% to 4.2 million tonnes, amid challenging conditions, leaving an industry inventory of 1.2 million tonnes.

FFC recorded urea offtake of 1,955 thousand tonnes and carried 290 thousand tonnes of inventory, representing 25% of total industry stock.

In the DAP segment, total industry offtake dropped to 783 thousand tonnes from 940 thousand tonnes last year. FFC’s Sona DAP sales stood at 541 thousand tonnes, accounting for 69% of the market, a 3% increase over the same period last year.

Aggregate fertilizer revenue stood at Rs283bn, marking a 26% increase YoY. The company earned dividend income of Rs20.9bn compared to Rs10.6bn in 9MFY24, while total other income reached Rs34.4bn, which helped support profitability amid rising operational costs.

FFC reaffirmed its commitment to sustainable and efficient fertilizer production, supporting Pakistan’s agricultural productivity while advancing energy efficiency and responsible resource management.

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