August 06, 2020: Fauji Fertilizer Company Limited (FFC) recently announced its first half-yearly financial results for the period ending 30 June 2020. The same was released to all electronic, print, and web media through a Press Release. The company announced the profitability of Rs. 9.14 billion translating into earning of Rs. 7.18 per share which was published on 28 July 2020 by a number of Urdu and English dailies. On the contrary, it was observed that certain newspapers reported somewhat different results/ conclusions causing doubts in the minds of shareholders.
An appraisal divulged that findings of misquoting were based on consolidated financial statements of the complete FFC group (comprising several subsidiary / associated entities) instead of separate financial statements of FFC itself. They also focused their analysis to the 2nd quarter (March – June) of 2020 in most parts of the report.
One newspaper stated that the profitability for the half-year has decreased by 14% whereas in actual it has been increased by 14%. The newspaper did not state that this profitability related to the consolidated and not the separate financial statements of the company. Another newspaper reported that this profitability has increased by 11% instead of the actual increase of 14%. The confusion was further escalated by reporting on a mix of figures as per consolidated as well as separate financial statements.
FFC has a legacy of being a quality conscious and transparent company while ensuring good returns to the stakeholders as substantiated by its position among the top 25 companies of PSX and maintaining 1st position among them for the last consecutive 9 years. Therefore, it is hereby clarified that FFC has performed exceptionally well even under the prevailing pandemic conditions by earning a profit of Rs. 9.14 billion on a standalone basis with a 3% increase over the last year.