Fauji Fertilizer Company posts 113% growth in profits

KARACHI: Fauji Fertilizer Company Limited (FFC) announced its 2QCY19 (ended June 30, 2019) financial results wherein the company reported unconsolidated net profit of Rs5.209 billion translating into earning per share (EPS) of Rs4.09 versus Rs2.45 billion and EPS of Rs1.93 registered during the corresponding quarter of last year, exhibiting a notable rise of 113%.

Earnings arrived above market expectation mainly due to higher than estimated gross margins and other income.

Along with the result, the company also declared an interim cash dividend of Rs2.85/share, taking cumulative payout for 1HCY19 to Rs5.35/share.

Sales revenues of FFC incremented 15% YoY to Rs26.18 billion during 2QCY19 as against Rs22.708 billion in corresponding quarter of last year.

Gross profit clocked-in at Rs8.844 billion as compared to Rs5.427 billion in 2QCY18, registering a notable increase of 63% YoY, with gross margins rising 10pps YoY to 34% during the quarter.

Other income declined 9.0 % YoY to Rs1.969 billion whereas finance cost rose 62% YoY to Rs629 million during the quarter.

Moreover, tax expense increased 4% YoY to Rs1.916 billion with effective rate arriving at 27% compared to 43% in 2QCY18.

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