July 29, 2021 (MLN): Fauji Fertilizer Bin Qasim (FFBL) has announced financial results today for the half year ended on June 30, 2021, wherein the company posted a turnaround in earnings and reported the profit worth Rs1.88billion against the loss of Rs3.22bn in the same period last year (SPLY).
Given this, the earning per share (EPS) of the company clocked in at Rs1.29 per share in 2HFY21 versus loss per share (LPS) Rs2.78 per share in 2HFY20.
The turnaround in net income is primarily attributable to higher other income, which is most likely on account of higher DAP margins, lower finance cost (FC), and absence of one-off impairment charges, as per noted by BMA Capital.
With regards to its topline, the company noted a surge of Rs7bn in net sales which stood at Rs38.61bn as compared to SPLY mainly due to higher DAP prices. This increase has also stimulated the cost of sales by 8.8% to clock in around Rs29bn in 2HFY21.
Resultantly, the gross margins of the company during the said period scaled up from 15% to 25%.
On the cost front, distribution and marketing expenses stood at Rs2.97bn, showing a surge of 18.7% YoY while administrative expenses have been increased by 6.8% to clock in at nearly 1bn during 2HFY21.
Owing to the government apt policies in the wake of pandemic and SBP’s reduction in policy rate to support business environment across the country, the financial cost of the company slashed by almost 51% to stand at Rs2.54bn during the period under review.
Furthermore, the company staged 1.8x decline in the income received from share of profit of associates and joint ventures during 2HFY21. On the contrary, the company earned Rs786million from other sources as compared to Rs482mn in 2HFY20.
In addition, the company has also expensed out Rs668mn on account of unwinding of GIDC liability during the review period.
On the taxation front, the company paid Rs1.05bn, up by 81% as compared to the taxes paid in SPLY.
|
Consolidated Profit and Loss for the Half Year ended June 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
Jun-21 |
Jun-20 |
% Change |
|
|
Sales-net |
38,607,295 |
31,483,496 |
22.6% |
|
Cost of Sales |
(28,983,443) |
(26,641,132) |
8.8% |
|
Gross Profit |
9,623,852 |
4,842,364 |
98.7% |
|
Selling and distribution cost |
(2,967,434) |
(2,499,488) |
18.7% |
|
Administrative expenses |
(980,771) |
(918,424) |
6.8% |
|
5,675,647 |
1,424,452 |
298.4% |
|
|
Finance costs |
(2,535,496) |
(5,144,155) |
-50.7% |
|
Unwinding of GIDC payable |
(668,758) |
– |
– |
|
Other operating expenses |
(2,214,533) |
(452,374) |
389.5% |
|
Other Income |
|||
|
Share of profit of associates and joint venture- net |
1,889,885 |
1,049,284 |
-100.0% |
|
others |
786,398 |
482,595 |
291.6% |
|
Loss before taxation |
2,933,143 |
(2,640,198) |
– |
|
Taxation-net |
(1,054,316) |
(581,974) |
81.2% |
|
Loss after taxation |
1,878,827 |
(3,222,172) |
– |
|
Profit/Loss per share – basic and diluted (Rupees) |
1.29 |
(2.78) |
– |
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