Fatima Fertilizer’s annual net profits remain flat

June 01, 2020 (MLN): Fatima Fertilizer Company Limited has announced its annual financial results ended December 31, 2019, wherein, the company has posted net profits of Rs 12.07 billion, depicting a meagre growth of 1.31% as compared to the net profits of Rs 11.91 billion of the previous year.

This has translated into earnings per share- basic and diluted which clocked in at Rs 5.75 against Rs 5.67 in the aforementioned period.

Alongside financial results, the Board of Directors of the company announced a final cash dividend for the year ended December 31, 2019 at Rs 2 per share i.e. 20%.

As per the financial statement issued by the company, the sales of the company grew by 46% YoY. However, a significant increase in the cost of sales by 83.57% YoY made the gross margin shrink to 37%.

More notably, it bore colossal finance cost which increased 2 times YoY from Rs 1.82 billion to Rs 3.76 billion when compared to the prior year owing to the higher interest rate, restricting the bottom line. Moreover, the administrative expenses increased by 20% YoY while other expenses plunged by 13.33%.

Meanwhile, other income of the company soared by 80.7%, from Rs 603 million to Rs 1.09 million, YoY. Income tax expenses also jumped by 5%.

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