August 28, 2023 (MLN): Fatima Fertilizer Company Limited (PSX: FATIMA) 's profitability declined by 12.31% YoY in 1HCY23, clocking in its profit after tax at Rs5.13bn [EPS: Rs2.44] compared to a profit of Rs5.85bn [EPS: Rs2.78] in the same period last year (SPLY).
Along with the results, the company announced an Interim Cash Dividend for the half year ended June 30, 2023, at Rs1.75 per share i.e. 17.5%.
Since the announcement of the results, the stock price of FATIMA has gained around 3.64% [03:18pm PST], while it has gained 5.64% as compared to the previous day.
Going by the results, the company's top line increased by 34.83% YoY to Rs83.98bn as compared to Rs62.28bn in SPLY.
However, the cost of sales also rose by 63.89% YoY, as a result, the gross profit remained flat at Rs28.29bn in 1HCY23.
During the review period, other income increased by 34.83% YoY to stand at Rs1.18bn in 1HCY23 as compared to Rs874.52m in SPLY.
On the expense side, the company observed an increase in selling and distribution expenses by 35.55% YoY while other expenses by fell 1.11% YoY to clock in at Rs3.48bn and Rs3.14bn respectively during the review period.
The company’s finance costs surged by 2.27x YoY and stood at Rs2.66bn as compared to Rs1.17bn in 1HCY22, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs10.29bn against the Rs12.99bn paid in the corresponding period of last year, depicting a fall of 20.78% YoY.
| Consolidated (un-audited) Financial Results for the half-year ended 30 June, 2023 | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Sales | 83,977,338 | 62,283,586 | 34.83% |
| Cost of sales | (55,689,706) | (33,980,534) | 63.89% |
| Gross Profit | 28,287,632 | 28,303,052 | -0.05% |
| Selling and distribution expenses | (4,509,248) | (3,326,745) | 35.55% |
| Administrative expenses | (3,483,924) | (2,484,344) | 40.24% |
| Other Income | 1,179,148 | 874,522 | 34.83% |
| Other expenses | (3,143,063) | (3,178,443) | -1.11% |
| Finance cost | (2,660,794) | (1,174,568) | 126.53% |
| Share of profit from associates | 6,024 | 25,188 | -76.08% |
| Other losses | (259,932) | (204,092) | 27.36% |
| Operating profit | 15,415,843 | 18,834,570 | -18.15% |
| Taxation | (10,289,317) | (12,988,633) | -20.78% |
| Net profit for the period | 5,126,526 | 5,845,947 | -12.31% |
| Basic and diluted earnings/ (loss) per share | 2.44 | 2.78 | – |
Amount in thousand except for EPS
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Posted on: 2023-08-28T15:04:05+05:00
