KARACHI: Fauji Fertilizer Bin Qasim (FFBL) announced its 1QCY19 ended March 31, 2019 financial results wherein the company reported unconsolidated net loss of PKR 1.867 bilion translating into loss per share (LPS) of PKR 2.00 as against loss of PKR 449 million and LPS of PKR 0.48 incurred in the corresponding quarter last year.[the_ad id=”32940″]Earnings arrived below market expectation due to higher than estimated operating costs booked by the company during 1QCY19.
Sales revenue of the company declined 66% YoY to PKR 3.499 billion in 1QCY19 owing to hefty decline in sales volumes during the quarter.
Gross margins of FFBL declined from 7% in 1QCY18 to –20% on the back of hefty increase in input costs as a result of significant PKR devaluation & rise in feed & fuel prices. In absolute terms, gross loss was recorded at PKR 683 million as against gross profit of PKR 746 million in 1QCY18.
Distribution cost declined 27% YoY to PKR 679 million owing to reduced sales volumes during the quarter.
As expected, financial charges witnessed a notable increase of 118% YoY to PKR 912 million in 1QCY19 as a result of increase in short-term borrowings and higher interest rates.