FFC Profits Down 10% in 1Q2025
Staff Report :
KARACHI: Fauji Fertilizer Company (FFC) announced its 1Q2025 financial result on Monday, wherein the company recorded unconsolidated quarterly profit of Rs13.2bn (EPS: Rs9.33), down 10% YoY. The result came in-line with industry expectations.
Along with the results, the company also declared its quarterly cash dividend of Rs7/share.
Net sales of the company decreased by 39%/69% YoY/QoQ at Rs64bn in 1Q2025 due to significant decline in urea and DAP offtake by 34%/53% YoY and 36%/77% QoQ, respectively.
Gross margins clocked in at 35.6% in 1Q2025 vs 25% during 1Q2024 and 25.4% in 4Q2024. To note, the company made some one-off adjustments in 4Q2024, post FFBL merger.FFC Profits Up 151% in 4QFY24
Distribution expenses decreased by 24% YoY to Rs6.1bn in 1Q2025 mainly due to lower offtake during the period.
Other Income decreased by 48% YoY to Rs7.4bn in 1Q2025 due absence of dividend income from associates and subsidiaries.
Finance cost clocked in at Rs1.67bn, down 33% YoY and 27% QoQ due lower interest rates.
Tax expense clocked in at Rs7.1bn (effective tax rate of 35%) in 1Q2025 vs. Rs11.3bn (effective tax rate of 43.5%) in 1Q2024.
The stock is currently trading at a 2025E P/E of 6.9x and dividend yield of 11.5%.
