Fatima Fertilizer Q1 profit takes major hit

April 24, 2026 (MLN): Fatima Fertilizer Company Limited (PSX: FATIMA) reported a significant decline in its profitability for the first quarter ended March 31, 2026, with profit after tax falling by 61.35% to Rs3.24 billion compared to Rs8.37 billion in the same period last year.

Earnings per share (EPS) also dropped sharply to Rs1.54 from Rs3.99 in Q1 FY25, showing the overall pressure on the company’s bottom line.

The company’s net sales declined by 9.83% year-on-year to Rs46.85bn, down from Rs51.96bn in the corresponding period.

Cost of sales also decreased by 8.62% to Rs28.32bn; however, the decline in revenue outpaced cost savings, leading to an 11.62% drop in gross profit to Rs18.53bn.

Consequently, gross margins remained under pressure during the quarter.

On the expense side, selling and distribution expenses were slightly reduced by 2.05% to Rs3.96bn.

However, administrative expenses surged by 28.95% to Rs3.29bn, indicating higher overhead costs.

Additionally, other operating expenses witnessed a substantial increase of 279.34%, rising to Rs4.06bn, which further weighed on profitability.

On a positive note, finance costs declined by 7.94% to Rs1.75bn, providing some relief.

However, other income dropped sharply by 73.87% to Rs0.58bn from Rs2.22bn in the same period last year, significantly limiting support to the bottom line.

As a result, profit before tax declined by 55.59% to Rs6.05bn compared to Rs13.62bn in Q1 FY25.

Taxation expenses also decreased by 46.39% to Rs2.81bn, but the reduction was not sufficient to offset the steep decline in pre-tax earnings.

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