January 25, 2021 (MLN): Fauji Fertilizer Bin Qasim (FFBL) has witnessed a turnaround in earnings as its profits after tax for the CY20 clocked in at Rs 6 billion against the net loss of Rs 8.37 billion in CY19.
This reflected in the company’s earnings per share which stood at Rs 6.23 in the period mentioned above as opposed to a loss per share of Rs 6.15 per share in the previous year.
The company managed to post positive earnings largely on the back of an uptick in DAP volumes along with an uptrend in DAP prices, a decline in fuel gas prices due to GIDC elimination, and better pricing dynamics.
During the year, the company registered a 20.3% YoY increase in revenues while its cost of sales jumped by 14.5 % YoY, as a result, the gross profits of the company witnessed a growth of 52.7 % YoY. In addition, the gross margins of the company jumped by 4ppts from 15% to 19%.
The company’s earnings further strengthened by lower finance cost (down by 15.8% YoY) and a higher share of profits from associates (up by 44.5% YoY).
With regards to FFBL’s major expense heads, its admin cost declined by 16.9% YoY, Selling and distribution cost nosedived by 9.3% YoY and its tax expenses shrank by 24% YoY, all these further provided support to pull the company’s bottom-line in green.
Consolidated Profit and Loss for the year ended December 31, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Dec-20 | Dec-19 | % Change |
Sales-net | 98,060,962 | 81,520,667 | 20.3% |
Cost of Sales | (79,159,441) | (69,139,520) | 14.5% |
Gross Profit | 18,901,521 | 12,381,147 | 52.7% |
Selling and distribution cost | (6,441,218) | (7,103,557) | -9.3% |
Administrative expenses | (2,005,635) | (2,412,601) | -16.9% |
| 10,454,668 | 2,864,989 | 264.9% |
Finance costs | (8,344,459) | (9,909,862) | -15.8% |
Other operating expenses | (555,196) | (807,238) | -31.2% |
Allowance for expected credit losses | (505,040) | (391,459) | 29.0% |
Other Income | 1,260,906 | 1,369,318 | -7.9% |
Share of profit of associates and joint venture- net | 4,454,881 | 3,082,969 | 44.5% |
Remeasurement gain in GIDC-net | 2,740,855 | – | #DIV/0! |
Profit/Loss before taxation | 9,506,615 | (3,791,283) |
|
Taxation-net | (3,473,107) | (4,580,554) | -24.2% |
Profit/Loss after taxation | 6,033,508 | (8,371,837) |
|
Earnings/Loss per share – basic and diluted (Rupees) | 6.23 | (6.15) |
|
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