FFC’s profits clock in at Rs35.7bn in CY21

January 31, 2022 (MLN): Fauji Fertilizer Company Ltd (FFC) has revealed its financial result for the calendar year 2021 whereby the company declared consolidated net profits of Rs35.70 billion, showing a 20% YoY growth when compared to a net profit of Rs29.75bn in CY20.

This has translated into earnings per share (EPS) of Rs28.06, up by 20% YoY, thanks to a hike in urea and DAP prices, one-off gain booked as a bargain purchase of Rs5.48bn and higher other income.

In conjunction with the results, the company announced a final cash dividend of Rs4.65 per share i.e., 46.5% for the year ended December 31, 2021.

During CY21, the net sales of the company witnessed a jump of 11% YoY, standing in at Rs114bn on an account of an increase in urea and DAP prices. As a result, the gross margins expanded by 2.65ppt to 36.17% during the said period under review.

On the cost front, the company observed a 9.5% YoY increase in administrative and distribution expenses whereas other expenses surged by 12% YoY to Rs2.96bn.

Meanwhile, the financial cost of the company increased by 13.4% YoY to Rs2.74bn

The major positive highlight is the one-off gain booked as a bargain purchase of Rs5.49bn. This might be due to a revaluation gain on the purchase of Fauji Wind Energy I-II.

Furthermore, the other income of the company was recorded at Rs6.3bn during the period under review.

Among other line items, the company expensed out Rs2.44bn on the back of the unwinding of GIDC liability during the review period. On the other hand,  the company earned from the share of profits of associates and joint ventures, standing at Rs10.15bn, up by 22.4%.

On the tax front, the company booked a tax expense of Rs10.04bn, up by around 2.3% YoY in CY21.

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