Fatima Fertilizer delivers strong 27% earnings growth in 9MCY25

October 30, 2025 (MLN): Fatima Fertilizer Company Limited (PSX: FATIMA) reported a profit after tax of Rs28.91bn for the nine months ended September 30, 2025, up 27% from Rs22.77bn in the corresponding period last year.

Basic and diluted earnings per share increased 27% to Rs13.77 compared to Rs10.84 in 9MCY24.

Sales rose 5% year-on-year to Rs171.80bn from Rs171.00bn, demonstrating resilient demand during the period. Cost of sales increased 8% to Rs114.62bn from Rs106.27bn.

Gross profit declined 1% to Rs64.18bn against Rs64.73bn in 9MCY24, with the gross margin compressing to 37.4% from 37.9% in the prior year period, reflecting higher input costs.

Distribution costs increased 27% to Rs12.73bn from Rs10.02bn last year, while administrative expenses rose modestly by 2% to Rs7.76bn from Rs7.59bn.

The company's subtotal for gross profit less expenses stood at Rs43.69bn, down 7% from Rs47.12bn in 9MCY24.

Finance costs surged 128% to Rs5.91bn from Rs2.59bn in the previous year, representing a significant pressure on profitability. Other operating expenses decreased 52% to Rs4.35bn from Rs9.10bn, providing partial relief.

Profit before other income and losses stood at Rs33.44bn, down 6% from Rs35.43bn in 9MCY24.

Other income increased substantially by 96% to Rs12.69bn from Rs6.48bn in the prior period. The company recorded a share of loss from associates of Rs65.6m compared to a profit of Rs5.4m in 9MCY24.

Notably, the prior year included one-time items: unwinding of provision for GIDC of Rs65.3m and loss allowance on subsidy receivable from GoP of Rs627.6m, totaling Rs692.9m in other losses.

Profit before tax rose 12% to Rs46.07bn from Rs41.23bn in 9MCY24.

Provision for taxation decreased 7% to Rs17.15bn from Rs18.46bn in the prior period, with the effective tax rate improving to 37.2% from 44.8%.

The company concluded 9MCY25 with a net profit of Rs28.91bn, delivering a net profit margin of 16.8% compared to 13.3% in 9MCY24.

The strong profit growth was driven by substantial growth in other income, lower taxation burden, and reduced other operating expenses, which offset the challenges of higher finance costs and distribution expenses.

The company demonstrated effective financial management across its fertilizer operations despite a challenging operating environment.

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