Fatima Fertilizers reports a 20% decline in quarterly profits

June 30, 2020 (MLN): Fatima Fertilizer Company Limited has announced the financial results for the quarter ended March 31, 2020, which show that the company has earned net profits of Rs. 2.4 billion (EPS: Rs. 1.17), that is around 20% lower as compared to the same period of last year.

The decline in earnings can be attributed to a 7.8% drop in top-line revenue, which caused the gross profits to decrease by 10%.

Even though there was a decline in distribution cost by 27%, the impact of it was negated by a 23.7% increase in administrative expenses. The company also received a huge blow in the form of an 88% surge in finance costs.

Some of the positive highlights in the financial results for the quarter were the 25.7% increase in the share of profit from associates and an 18% decline in income tax expense.

Statement of Profit or Loss for the three months ended March 31, 2020 (Rupees'000)

 

Mar-20

Mar-19

% Change

Sales

14,432,960

15,659,315

-7.8%

Cost of sales

(7,851,904)

(8,345,607)

-5.9%

Gross profit

6,581,056

7,313,708

-10.0%

Distribution cost

(928,047)

(1,282,639)

-27.6%

Administrative expense

(753,920)

(609,379)

23.7%

Finance cost

(1,248,498)

(661,348)

88.8%

Other operating expense

(332,116)

(588,280)

-43.5%

Other income

201,365

208,572

-3.5%

Share of profit from associate

5,847

4,653

25.7%

Profit before tax

3,525,687

4,385,287

-19.6%

Taxation

(1,066,436)

(1,298,226)

-17.9%

Profit for the period

2,459,251

3,087,061

-20.3%

Earnings per share

1.17

1.47

-20.4%

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Posted on: 2020-06-30T13:32:00+05:00

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