FFBL's financial performance continues to deteriorate, losses expand by 10x YoY

By MG News | October 25, 2019 at 04:00 PM GMT+05:00

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October 25, 2019 (MLN): Fauji Fertilizer Bain Qasim Limited (FFBL)’s financial performance continued to deteriorate as the company posted losses of Rs 5.1 billion for the nine months ended on September 30^th 2019, which is 10 times higher than the losses of Rs 482.9 million incurred in the same period last year.

As per the financial statement issued by the company, the loss per share for the period recorded at Rs 4.36 per share.

The increase in losses was attributable to high finance costs followed by weak margins.

The finance cost of the company surged by 92% on the back of higher interest rates coupled with additional borrowing for working capital, whereas, gross margins remained under pressure, as it declined from 18% to 15% mainly due to rise in gas prices and the company’s inability to pass on the rising input costs.

The amplification in losses also attributed to the massive rise in tax payments, which were twofold of what the company paid last year.

On the positive front, the company net revenues grew by 10% on the back of higher offtakes of DAP coupled with higher Urea and DAP prices.

Profit and Loss Account for the nine months ended September 30, 2019 ('000 Rupees)
	Sep-19	Sep-18	% Change
Sales-net	54,380,377	49,398,602	10.1%
Cost of Sales	(46,194,967)	(40,269,254)	14.7%
Gross Profit /(loss)	8,185,410	9,129,348	-10.3%
Selling and distribution cost	(5,171,010)	(5,126,158)	0.9%
Administrative expenses	(1,639,965)	(1,491,043)	10.0%
total Operating expenses	1,374,435	2,512,147	-45.3%
Finance costs	(6,879,021)	(3,581,764)	92.1%
Other operating expenses	(730,911)	(1,010,335)	-27.7%
Total expenses	(7,609,932)	(4,592,099)	65.7%
	(6,235,497)	(2,079,952)	199.8%
Other Income	1,827,377	1,248,832	46.3%
Share of profit of associates and joint venture- net	984,811	1,024,903	-3.9%
Total other income	2,812,188	2,273,735	23.7%
Profit/(loss) before taxation	(3,423,309)	193,783
Taxation	(1,711,251)	(676,764)	152.9%
Profit/(loss) after taxation	(5,134,560)	(482,981)	963.1%
(Loss)/Earnings per share - basic and diluted (Rupees)	(4.36)	0.29

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