January 28, 2021 (MLN): Fauji Fertilizer Company (FFC) has announced CY20 results today, as per which the company posted consolidated profits of Rs 29.7 billion with earnings per share (EPS) of Rs 23.38, as opposed to the profits of Rs 17.3 billion (EPS: Rs 13.62) in CY19, showing a significant jump of 71.6% YoY.
In conjunction with the results, the company announced a cash dividend of Rs 3.4 per share, taking the total CY20 payout to Rs 11.20 per share.
During the year, the net revenues of the company fall slightly by 6% YoY mainly due to lower Dap offtakes and Urea prices.
However, the gross margins of the company increased by 4ppts to 34% due to GIDC reduction and higher urea retention prices.
Furthermore, the financial statement of the company shows that FFC recorded a gain of Rs 5.92 billion on extinguishment of the original GIDC liability. However, it also recorded a loss of Rs 987 million on subsidy receivables from GoP.
The company also booked profits f Rs 8.2 billion from its associates and joint ventures against the loss of Rs 379.3 million in the previous year which further strengthened the company’s earnings.
Among other major heads, FFC’s distribution cost declined by 6.8% YoY on account of reduced transportation costs amid lower fuel prices. while other expenses increased by 11% YoY. In addition to this, its other income went down by 9% YoY, this can be attributed to lower interest rates and the absence of dividends from subsidiaries.
Due to decreased borrowing and lower interest rates, the finance cost of the company also witnessed a fall of 27% YoY.
|
Consolidated Profit and Loss Account for the year ended December 31, 2020 ('000 Rupees)
|
|||
|---|---|---|---|
|
|
Dec-20 |
Dec-19 |
% Change |
|
Turnover – net |
102,744,223 |
109,817,389 |
-6.4% |
|
Cost of sales |
(68,303,906) |
(77,039,227) |
-11.3% |
|
Gross Profit |
34,440,317 |
32,778,162 |
5.1% |
|
Administrative expenses and distribution cost |
(8,265,375) |
(8,867,378) |
-6.8% |
|
Finance cost |
(2,413,248) |
(3,311,837) |
-27.1% |
|
Other gains/losses |
|
|
|
|
Gain on extinguishment of original GIDC liability |
5,926,537 |
– |
|
|
Loss allowance on subsidy receivable from GoP |
(987,000) |
– |
|
|
Other expenses |
(2,647,528) |
(2,380,931) |
11.2% |
|
Total expenses |
(8,386,614) |
(14,560,146) |
-42.4% |
|
Other income |
5,216,677 |
5,751,571 |
-9.3% |
|
Share of profit of associates and joint venture |
8,296,691 |
(379,319) |
|
|
Profit before taxation |
39,567,071 |
23,590,268 |
67.7% |
|
Provision of taxation |
(9,816,265) |
(6,256,488) |
56.9% |
|
Profit after taxation |
29,750,806 |
17,333,780 |
71.6% |
|
Earnings per share – basic and diluted (Rupees) |
23.38 |
13.62 |
71.7% |
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