FFC records highest ever profit in 6MFY23 despite inflation, devaluation

News Image

MG News | July 25, 2023 at 02:31 PM GMT+05:00

0:00

July 25, 2023 (MLN): Despite the high level of inflation, devaluation of currency, and imposition of the additional super tax, Fauji Fertilizer Company Limited (PSX: FFC) has managed to post highest ever six-monthly profitability of Rs20.76 billion [EPS: Rs15.97] compared to Rs15.37bn [Rs11.86] last year, marking a jump of 35% YoY.

The increased profitability is attributable to significant cost optimization measures and operational efficiency enhancement initiatives implemented by the management, the company’s latest filing on PSX reads.

In conjunction with the results, the company also announced an interim cash dividend for the period at Rs3.15 per share i.e., 31.5%. This is in addition to interim dividends already paid at Rs4.26 per share i.e., 42.6%.

However, the Profitability in dollar terms inched down by 8% to $48 million compared to$52mn last year.

Throughout the period, the company produced 1,278 thousand tonnes of Sona urea, at an operating efficiency of 125%, in line with last year.

It is pertinent to mention that selling prices of urea varied significantly within the fertilizer industry, with FFC marketing urea at the lowest price of Rs2,565 per bag, compared to an average market price of around Rs3,000 per bag and international price of Rs5,700, the statement added.

The top line of the company registered a growth of 33% YoY to stand at Rs82.51bn in 6MFY23. Subsequently, the margins of the company moved up to 46% from 41.24% in 6MFY22.

Administrative and distribution expenses jumped by around 36% YoY to Rs6.45bn.

Other income of the company has also supported the bottom line as it has increased to Rs6.83bn. As the cost of borrowing goes higher, the financial cost has swelled by 33%.

On the taxation front, the company paid Rs13.38bn in 6MFY23, up by 19.3% YoY.

Consolidated Profit and Loss Account for the half year ended June 30, 2023 ('000 Rupees)

 

Jun-23

Jun-22

% Change

Turnover

        82,518,347

            62,061,227

33.0%

Cost of sales

      (44,561,574)

          (36,464,282)

22.2%

Gross Profit

        37,956,773

            25,596,945

48.3%

Administrative and distribution expenses

        (6,456,648)

            (4,752,796)

35.8%

Finance cost

        (3,294,046)

            (2,476,228)

33.0%

Unwinding of GIDC liability

            (704,282)

            (1,174,764)

 

Loss allowance on subsidy receivable from GoP

            (500,000)

                (350,000)

42.9%

Other expenses

        (2,258,230)

            (1,661,774)

35.9%

Other income

          6,836,772

              5,406,407

26.5%

Share of profit of associates and joint venture

          2,574,237

              6,014,552

-57.2%

Profit before taxation

        34,154,576

            26,602,342

28.4%

Provision of taxation

      (13,385,121)

          (11,222,616)

19.3%

Profit for the year

        20,769,455

            15,379,726

35.0%

Earnings per share - basic and diluted (Rupees)

                   15.97

                       11.86

34.7%

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 134,299.77
290.06M
0.39%
517.42
ALLSHR 84,018.16
764.12M
0.48%
402.35
KSE30 40,814.29
132.59M
0.33%
132.52
KMI30 192,589.16
116.24M
0.49%
948.28
KMIALLSHR 56,072.25
387.69M
0.32%
180.74
BKTi 36,971.75
19.46M
-0.05%
-16.94
OGTi 28,240.28
6.19M
0.21%
58.78
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,140.00 119,450.00
115,635.00
4270.00
3.75%
BRENT CRUDE 70.63 70.71
68.55
1.99
2.90%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.10
1.14%
ROTTERDAM COAL MONTHLY 108.75 108.75
108.75
0.40
0.37%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 68.75 68.77
66.50
2.18
3.27%
SUGAR #11 WORLD 16.56 16.60
16.20
0.30
1.85%

Chart of the Day


Latest News
July 11, 2025 at 10:56 PM GMT+05:00

Gold price in Pakistan rises Rs2,300 per tola


July 11, 2025 at 05:49 PM GMT+05:00

PKR gains 10 paisa per USD


July 11, 2025 at 05:41 PM GMT+05:00

PSX Closing Bell: Bulls Serenade The Bourse


July 11, 2025 at 05:06 PM GMT+05:00

UBL doubles profit to Rs65bn in 1HCY25


July 11, 2025 at 04:19 PM GMT+05:00

Ideal Spinning Mills to exit spinning business



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg