FFBL: Profit slumps to Rs3.63bn in 9MCY22

October 25, 2022 (MLN): Fauji Fertilizer Bin Qasim Limited (PSX: FFBL), the country’s sole DAP producer, has revealed its financial statement for a period of nine months that ended on September 30 2022 as per which, the bottom line of the company shrank by 39% YoY to clock in at Rs3.63 billion (EPS: 2.68) compared to Rs5.96bn (EPS: 4.41) earned in 9MCY21, the company filing on PSX showed today.

The drop in profit is primarily attributed to the declining trend in international DAP prices and volatility in the USDIPKR parity.

During the period, the company reported sales revenue of Rs109bn, up by 33% YoY compared to the same period last year. However, the higher increase in the cost of sales by 27% YoY dented the gross margins of the company by 2% to 22% in 9MCY22.

The company also achieved the highest-ever DAP production of 673KT for the period. The company's DAP sales dropped by 26% in comparison to a 41% decline in the industry's DAP sales during the period, a statement issued to PSX added.

Despite exchange loss and finance cost, profit before tax achieved 9% growth from Rs8.8bn to Rs9.6bn.

On the cost front, distribution and selling expenses stood at Rs5.29bn, up by 10.2% YoY on the back of higher fuel costs and other inflationary pressures while administrative expenses jumped by 13% to clock in at nearly Rs1.2bn during 9MCY22.

However, the super tax charge of Rs2.7bn reduced the profit after tax.

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