Fatima Fertilizer posts stable profit in March quarter

April 25, 2025 (MLN): Fatima Fertilizer Company Limited (PSX: FATIMA) has reported a slight dip of 0.23% in net profit to Rs8.37 billion [EPS: Rs3.99] for the quarter ended March 31, 2025, compared to Rs8.39bn [EPS: Rs4.00] in the same period last year (SPLY).

The company’s sales declined by 21.32% to Rs51.96bn from Rs66.04bn recorded in SPLY.

Meanwhile, the cost of sales also decreased by 19.71% to Rs30.99bn, leading to a 23.58% drop in gross profit to Rs20.97bn.

On the expense side, selling and distribution expenses rose by 18.69% to Rs4.05bn, while administrative expenses slightly fell by 3.34% to Rs2.55bn.

Operating profit consequently dropped by 32.82% to Rs14.37bn. The company’s finance cost surged by 131.37% to Rs1.90bn, exerting additional pressure on earnings.

However, other operating expenses sharply declined by 81.88% to Rs1.07bn, providing some relief.

The profit before other income fell by 22.23% to Rs11.4bn.

Other income witnessed a minor decrease of 3.78% to Rs2.22bn, while the company reported no other losses during the quarter compared to a loss of Rs659.91 million last year.

As a result, profit before taxation dropped by 16.47% to Rs13.62bn. Despite a significant 33.72% decline in taxation expenses to Rs5.24bn, the overall profit for the period recorded a slight dip of 0.23%.

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