July 25, 2022 (MLN): Fauji Fertilizer Bin Qasim Limited (FFBL) has reported a more than twofold increase in net profits to Rs4 billion during 1HCY22, compared to the profits of Rs1.9 billion recorded in the corresponding period last year.
This was reflected in earnings per share of the company which went up to Rs3.14 per share from Rs1.29 per share during 1HCY21.
The robust growth in earnings came on the back of higher topline growth and other income.
During the period, the company’s net sales jumped by a whopping 108% from Rs38.6bn to Rs80.3bn, mainly on the back of higher urea and DAP retention prices and offtake.
Meanwhile, production of DAP at 449 KMt and Urea at 262 KMt was 31% and 14% higher respectively as compared to the same period last year (SPLY). Similarly, the sales volume of DAP at 311 KMt and Urea at 261 KMt was 35% and 19% higher respectively.
Despite higher sales, the gross margins of the company shrank to 22% from 25% earlier, as the cost of sales jumped by 115% amid higher phosphoric acid prices and massive PKR depreciation.
The other income of the company witnessed an increase of 83% YoY to Rs4.89bn from Rs2.67bn, due to greater dividend income from the Moroccan JV, Pakistan Maroc Phosphore.
Furthermore, financial charges amplified by 23% YoY amid higher interest rates and short-term borrowings. To note, SBP has increased the policy rate by 450bps in the last 6 months. This coupled with a 5.6x increase in taxation which includes a Super Tax of Rs2.7bn which has been imposed in June 2022, put a limit on the company’s profitability.
Presently, the stock price of the company stood at Rs20.57, down by Rs0.49 or 2.33% from the previous price.
|
Consolidated Profit and Loss for the Half Year ended June 30, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-22 |
June-21 |
% Change |
|
Sales-net |
80,310,579 |
38,607,295 |
108.0% |
|
Cost of Sales |
(62,494,907) |
(28,983,443) |
115.6% |
|
Gross Profit |
17,815,672 |
9,623,852 |
85.1% |
|
Selling and distribution cost |
(3,801,667) |
(2,967,434) |
28.1% |
|
Administrative expenses |
(1,198,399) |
(980,771) |
22.2% |
|
|
12,815,606 |
5,675,647 |
125.8% |
|
Finance costs |
(3,130,140) |
(2,535,496) |
23.5% |
|
Unwinding of GIDC |
(491,570) |
(668,758) |
-26.5% |
|
Other operating expenses |
(4,019,926) |
(2,214,533) |
81.5% |
|
Other Income |
5,173,970 |
256,860 |
1914.3% |
|
Share of profit of associates and joint venture- net |
3,380,175 |
1,889,885 |
78.9% |
|
Others |
1,510,242 |
786,398 |
92.0% |
|
Profit/ (Loss) before taxation |
10,064,387 |
2,933,143 |
243.1% |
|
Taxation |
(5,980,819) |
(1,054,316) |
467.3% |
|
Profit/ (Loss) after taxation |
4,083,568 |
1,878,827 |
117.3% |
|
Earnings/ (loss) per share – basic and diluted (Rupees) |
3.14 |
1.29 |
143.4% |
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