Fauji Fertilizer Bin Qasim suffers 16 percent decline in annual gains

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MG News | January 30, 2019 at 04:20 PM GMT+05:00

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January 30, 2019 (MLN): Fauji Fertilizer Bin Qasim (FFBL)’s net income for CY18 has struck in at Rs.778 million with EPS at Rs.0.29, marking a 16% decline from last year (Rs.925.2 million).

A primary reason for this drop in profitability is that the company received Rs.2.3 billion lower non-core income (Rs.1.3 billion) this year, as a result of lower dividend income received from FFBL’s subsidiaries.

Moreover, hikes of over Rs.1 billion each, in operating expenses (Rs.1.7 billion) and finance cost (Rs.5.2 billion), has contributed further to an overall drop in gains.

Despite this outflows, FFBL’s pre-tax profits (Rs.1.4 billion) showed an increase of Rs.184 million (15.6%, YoY), but after accounting for taxation (Rs.590.7 million), the net income for the year demonstrated a Rs.147 million drop form last year.

Consolidated Profit and Loss for the year ended December 31 ,2018 ('000 Rupees)

 

Dec-18

Dec-17

% Change

Sales-net

                     77,555,064

                     64,388,706

20.4%

Cost of Sales

                  (63,335,899)

                  (54,810,414)

15.6%

Gross Profit

                     14,219,165

                       9,578,292

48.5%

Selling and distribution cost

                     (7,425,513)

                     (7,518,851)

-1.2%

Administrative expenses

                     (2,285,668)

                     (2,320,252)

-1.5%

Finance costs

                     (5,213,584)

                     (3,880,318)

34.4%

Other operating expenses

                     (1,676,638)

                        (633,469)

164.7%

Share of profit of associates and joint venture - net

                       2,402,358

                       2,343,875

2.5%

Other income

                       1,348,654

                       3,615,120

-62.7%

Profit/(loss) before taxation

                       1,368,774

                       1,184,397

15.6%

Taxation

                        (590,670)

                        (259,159)

127.9%

Profit/(loss) after taxation

                           778,104

                           925,238

-15.9%

Earnings per share - basic and diluted (Rupees)

1.68

2.03

-17.2%

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