PACRA maintains Fauji Fertilizer’s ‘AA+’ rating

July 28, 2025 (MLN): The Pakistan Credit Rating Agency Ltd. (PACRA) has maintained the entity ratings of Fauji Fertilizer Company Limited (PSX:FFC) at “AA+” for the long term and “A1+” for the short term, with a stable outlook, according to the latest press release issued by the rating agency.

FFC operates a strategically integrated production network with an average plant utilization rate exceeding 124%, enabling sustained operational efficiencies and robust supply capabilities.

FFC holds a substantial long-term investment portfolio of approximately Rs77 billion and maintains a strong asset base of Rs417bn as of CY24, with diversified holdings across multiple sectors in Pakistan.

The company’s governance framework is characterized by a professionally diverse board and an experienced management team that collectively drive strategic decision-making and operational resilience.

Following the acquisition of Fauji Fertilizer Bin Qasim Limited (FFBL) and a 31% equity stake in Agritech, FFC has emerged as the largest player in the fertilizer sector.

These strategic moves expanded its Urea market share to 49% and DAP to 63% as of March 2025, significantly enhancing its industry presence. The merger has also strengthened topline performance, with turnover reaching approximately Rs374bn in CY24.

Sales volumes during the year included 2,942 KT of Urea and 670 MT of DAP, including imports.

Despite challenges such as rising gas prices and inflationary pressures, FFC achieved growth in profitability driven by higher offtakes, record investment returns, and strong dividend income. Cost optimization initiatives further supported bottom-line stability.

The company’s financial risk profile remains strong, marked by a stable capital structure, a solid balance sheet, and enhanced borrowing capacity.

Coverage metrics are healthy, supported by improved free cash flows and effective risk management practices.

FFC’s sustained market dominance, strategic affiliation with Fauji Foundation, well-diversified product and investment portfolios, and disciplined financial management continue to underpin its leading position in Pakistan’s fertilizer sector.

FFC is a publicly listed entity incorporated in 1978. The company engages in the production, marketing, and sales of fertilizers, including Urea, DAP, SOP, MOP, Boron, and Zinc.

Fauji Foundation holds around 44% ownership in FFC, while the remaining shares are distributed among the general public, foreign companies, public sector entities, and financial institutions.

The company’s board is chaired by Lt Gen Anwar Ali Hyder, HI(M) (Retd.), while Mr. Jahangir Piracha serves as Chief Executive Officer, supported by a professional management team.

FFC maintains a well-diversified investment portfolio spanning key sectors, including cement, banking, energy, food, and services. This diversification enhances its financial resilience and strengthens long-term value creation.

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