Fauji Fertilizer Company (FFC), a leading fertilizer producer in Pakistan, announced a consolidated profit-after-tax of Rs22.59 billion for the quarter ending September 30, 2024, marking a nearly 45% rise from Rs15.62 billion in the same quarter last year.
In a statement released at the Pakistan Stock Exchange (PSX) on Monday, FFC’s board of directors convened on October 28, 2024, to evaluate the company’s financial and operational performance.
Despite the impressive profit, the board decided not to declare any cash dividends for the quarter due to ongoing merger discussions, emphasizing the need for fair dividend distribution among all shareholders of the merged entity.
“The board is committed to resuming dividend payouts once the merger process is successfully completed,” stated FFC.
During this quarter, FFC’s earnings per share (EPS) rose to Rs17.51, up from Rs11.92 a year earlier. Revenue climbed to Rs57.72 billion, reflecting an 11% increase.
Gross profit surged nearly 57% to Rs30.68 billion in 3QCY24, improving the profit margin to 53.15%, compared to 37.5% in the previous year. Additionally, FFC’s other income grew to Rs5.63 billion, a 19% rise from Rs4.74 billion year-on-year.
On the financial front, the company’s finance costs decreased by approximately 16%, from Rs1.66 billion in 3QCY23 to Rs1.40 billion in 3QCY24. However, other expenses saw a significant uptick, rising nearly 60% to Rs2.1 billion.
FFC also reported a substantial 97% increase in its share of profit from associates and joint ventures, amounting to Rs7.45 billion.
Notably, the company sold Sona Urea at prices lower than international rates, benefiting local farmers by an estimated $320 million and helping to conserve the country’s foreign currency reserves.
