Fauji Fertilizer Company Limited (FFC) has announced its financial results for the year ended December 31, 2024, reporting a consolidated profit of Rs 85.5 billion. The significant increase in earnings follows the company’s merger with Fauji Fertilizer Bin Qasim Limited (FFBL), a move aimed at consolidating operations and strengthening market leadership.
FFC, Pakistan’s largest urea producer, initiated the merger with FFBL in line with its long-term growth strategy to enhance operational synergies and financial strength. FFBL, previously a separate subsidiary, was primarily engaged in the production of Di-Ammonium Phosphate (DAP) fertilizer and urea, and also held diversified investments in the food and energy sectors. The merger, sanctioned by the Lahore High Court’s Rawalpindi Bench, took effect on July 1, 2024, with FFBL’s board being dissolved. The FFC board has since taken over governance of the combined entity.
This consolidation strengthens FFC’s position in the domestic fertiliser market, integrating FFBL’s production capacity into its existing operations. The company now benefits from economies of scale, improved supply chain efficiency, and a more streamlined corporate structure.
Following the merger, FFC’s combined urea production stood at 2.84 million tonnes for 2024, with FFBL’s Bin Qasim Plant contributing 287,000 tonnes in the second half of the year. Total urea off-take reached 2.94 million tonnes, while DAP sales stood at 653,000 tonnes. The merger significantly contributed to profitability, combining FFBL’s financial results with FFC’s strong investment income and dividends from its strategic holdings.
FFC’s standalone profit for the year was Rs 64.7 billion, reflecting the benefits of the merger, effective cost controls, and robust revenue streams. The overall consolidated earnings of Rs 85.5 billion were bolstered by strong performances from FFC’s subsidiaries and associated companies.
The company’s domestic fertilizer production played a crucial role in reducing reliance on imports, saving the country an estimated $1.4 billion in foreign exchange.
In recognition of its strong financial performance, FFC’s board has declared a final dividend of Rs 21.00 per share. This follows interim dividends already paid at Rs 15.50 per share, which were later adjusted to Rs 13.86 per share post-merger. The dividend payouts reflect the company’s commitment to shareholder returns while maintaining financial stability.
According to the company’s official statement, the merger is expected to create long-term benefits for both the company and the agricultural sector by ensuring consistent fertiliser supply and price stability. Industry analysts view the integration as a strategic move that could set a precedent for further consolidation in Pakistan’s fertiliser industry, enabling more efficient production and resource utilisation.
FFC’s management has reaffirmed its commitment to operational excellence and innovation, focusing on sustainable growth and diversification. The company plans to explore new investment opportunities in agribusiness, renewable energy, and technology-driven agricultural solutions.
As Pakistan’s leading fertiliser producer, FFC is positioned to maintain its dominance in the market while driving economic growth through enhanced production capabilities and financial resilience.
