Rise in fertilizer prices keeps Fauji Fertilizer’s profitability up

MG News | January 30, 2020 at 02:17 PM GMT+05:00

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January 30, 2020 (MLN): Fauji Fertilizer Company (FFC) has announced its financial results for the year ended on December 31, 2020. As per results, the company posted its net earnings of Rs 17.33 billion, up by 5.4% YoY, against last year’s net earnings of Rs 16.43 in CY18.

The rise in net profitability was attributable to an increase in urea offtakes and rise in prices.

During the period under review, the sales revenue were flat due to falling in Urea and DAP offtakes which were offset by an increase in prices, resulting in an increase of gross margins from 27% YoY to 30% YoY.

More notably, the finance cost of the company increased substantially by 45%YoY owing to higher interest rate and running finance requirement.

The earnings per share of the company for the year ended December 31, 2019, have been reported Rs 13.62 in comparison to Rs 12.92 during the same period last year.

Other than this, the Board has announced a final cash dividend for the year ended Dec 31, 2020, at Rs 3.25 per share i.e. 32.50%. This is in addition to interim dividends already paid at Rs 7.55 per share.

Consolidated Profit and Loss Account for the year ended December 31, 2019 ('000 Rupees)
	Dec-19	Dec-18	% Change
Turnover	109,817,389	109,433,588	0.4%
Cost of sales	77,039,227	80,282,515	-4.0%
Gross Profit	32,778,162	29,151,073	12.4%
Administrative expenses and distribution cost	8,867,378	9,508,770	-6.7%
Finance cost	3,311,837	2,244,609	47.5%
Other expenses	2,380,931	2,111,115	12.8%
Total expenses	14,560,146	13,864,494	5.0%
Other income	5,751,571	5,090,494	13.0%
Share of (loss)/profit of associates and joint venture	(379,319)	3,356,746
Profit before taxation	23,590,268	23,733,819	-0.6%
Provision of taxation	6,256,488	7,295,615	-14.2%
Profit for the year	17,333,780	16,438,204	5.4%
Earnings per share - basic and diluted (Rupees)	13.62	12.92	5.4%

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