April 7, 2022 (MLN): Fatima Fertilizer has reported a 39% YoY increase in net profits for the CY21 to Rs18.47 billion (EPS: Rs18.8), compared to the profits of Rs13.2 billion in the preceding year.
In conjunction with the results, the company announced a cash dividend of Rs3.50 i.e., 35% for CY21.
The increase in the company’s bottom line was attributed to higher offtake in Calcium ammonium nitrate (CAN) and Nitrophos (NP). Additionally, the impact of higher prices of DAP has also been passed on through NP which was positive for FATIMA.
The revenues of the company clocked in at Rs112.5 billion, representing 58% YoY growth compared to the same period last year. The cost of sales during CY21 increased by 63% YoY mainly due to additional production volumes from Multan and Sheikhupura plants and partly due to shifting of the fixed gas price regime to the normal gas price upon completion of 10 years time period for its Sadiqabad plant.
Due to the above factors, the gross margins of the company resulted in 38% as compared to 40% in CY20.
On the costs front, the company witnessed a 30% YoY increase in distribution cost, a 16% YoY increase in administrative expenses and a whopping 2.8x YoY jump in other operating expenses.
However, owing to a significant increase in volumes, various cost optimization initiatives, better working capital management and reduced borrowing costs, profit before tax increased by 50% YoY to Rs28.2 billion vs Rs18.7 billion last year.
On the taxation front, the effective tax rate of the company came in at 34% against 29% in CY21.
|
Consolidated Financial Results for the year ended on December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Sales |
112,488,420 |
71,267,316 |
57.84% |
|
Cost of sales |
(69,403,976) |
(42,472,530) |
63.41% |
|
Gross profit |
43,084,444 |
28,794,786 |
49.63% |
|
Distribution cost |
(5,048,813) |
(3,890,808) |
29.76% |
|
Administrative expenses |
(3,899,774) |
(3,368,500) |
15.77% |
|
Finance cost |
(2,006,559) |
(3,469,303) |
-42.16% |
|
Other operating expenses |
(4,676,977) |
(1,677,558) |
178.80% |
|
Other income |
1,210,189 |
1,810,074 |
-33.14% |
|
Gain on re-measurement of GIDC |
– |
877,513 |
|
|
Unwinding of provision for GIDC |
(367,524) |
– |
|
|
loss allowance on subsidy receivable from GoP |
(109,721) |
(360,244) |
-69.54% |
|
Share of profit from Associates |
(348) |
26,795 |
-101.30% |
|
Profit before tax |
28,184,917 |
18,742,755 |
50.38% |
|
Taxation |
(9,710,827) |
(5,468,064) |
77.59% |
|
Profit for the period |
18,474,090 |
13,274,691 |
39.17% |
|
Earnings per share – basic and diluted (Rupees) |
8.80 |
6.32 |
39.24% |
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