Fauji Fertilizer Company Limited (FFC) reported a marginal year-on-year (YoY) increase of 0.71% in its profit after tax, reaching Rs37.95 billion for the six-month period ended June 30, 2025. This compares to Rs37.69 billion in the same period last year. Since the announcement of the result, the company’s stock has gone up by almost 1% or Rs. 4.
Despite challenges, FFC declared an interim cash dividend of Rs12 per share (120%), in addition to the Rs7 per share (70%) dividend paid earlier in the year. Earnings per share (EPS) stood at Rs26.67, marking an 8.66% decline from Rs29.2 in the prior year.
The company’s net turnover surged by 43.72% YoY to Rs182.29 billion, up from Rs126.84 billion. However, this revenue growth was offset by a 65.98% increase in the cost of sales, which rose to Rs119.49 billion, affecting gross margins. Consequently, gross profit increased by a modest 14.5%, reaching Rs62.8 billion.
Administrative and distribution expenses rose significantly by 55% YoY to Rs17.75 billion, limiting operating profit growth to 3.81%. Finance costs escalated by 22.94%, reaching Rs3.82 billion, largely due to a higher interest rate environment.
The company faced declines in the share of profit from associates and joint ventures, down 11.98% to Rs13.23 billion, and a slight decrease in other income by 1.26%. Despite these pressures, FFC reported a stable profit before income and final tax at Rs59.79 billion, showing a minor dip of 0.38% YoY.
FFC completed planned turnarounds at its Machhi and Port Qasim plant sites, leading to Urea production of 1,419 thousand tonnes and DAP production of 393 thousand tonnes, with no DAP imports during the period.
The company captured 43% of the Urea market and 64% of the DAP market, maintaining strong market presence despite challenging farm economics and drought conditions.
