FFBL remains in black

January 26, 2022 (MLN): Fauji Fertilizer Bin Qasim Limited (FFBL), the country’s sole DAP producer, has settled its financial statement for the year 2021 in black as the bottom line of the company saw a remarkable increase of around 60% to clock in at Rs9.22 billion (EPS: 6.95) compared to Rs6.03bn (EPS: 6.23) in 2020, the company filing on PSX showed today.

This splendid performance is mainly due to increased DAP sale price, higher other income due to increase in the share of profit from associated companies coupled with lower finance cost amid lower mark-up rates.

The top line of the company noted a surge of 34% to stand at Rs128bn during the year as compared to Rs98bn in the previous year due to the hike in DAP prices. Resultantly, the gross margins of the company during the said period scaled up from 19% to 23%.

On the cost front, distribution and selling expenses stood at Rs6.85bn, up by 6.3% YoY on the back of higher fuel cost and other inflationary pressures while administrative expenses jumped by 23.5% to clock in at nearly Rs2.48bn during 2021.

The positive impact of lower mark-up rates, efficient capital management, and retirement in debt borrowing was visibly seen in financial cost which plunged by 42.3% YoY to Rs4.81bn in the said period.

Furthermore, the company saw a 24% increase in the income received from a share of profit of associates and joint ventures, most likely due to gain recorded on account of the sale of Foundation Wind Energy I & II.

Meanwhile, the company has expensed out Rs1.25bn on account of the unwinding of GIDC liability during the review period.

On the taxation front, the company paid Rs5.76bn, showing a 66% increase against the taxes paid in SPLY.

Copyright Mettis Link News