RAWALPINDI: Fauji Fertilizer Company Limited (FFC) has announced its financial results for the first quarter ended March 31, 2024 in its Board of Directors’ meeting held on April 29.
Sona Urea production by the Company stood at 654,000 tonnes, whereas, sales were recorded at 661,000 tonnes 5% higher than 2023. The Company also marketed 94,000 tonnes urea imported by the government for steady supply of urea to the farmers. Aggregate urea sales of the Company thus stood at 755,000 tonnes compared to 631,000 tonnes of same period last year.
Higher sales volume besides increase in selling prices due to significant escalation in gas prices towards close of last year resulted in higher sales revenue of Rs 58.4 billion compared to Rs 36.4 billion same period last year.
High cost of imported urea, inflation and higher gas prices caused the cost of sales to increase by 88% to Rs 41.1 billion. Distribution cost also surged by 70% to Rs 5.2 billion mainly due to the implementation of Axle Weight Regulation and impact of inflation. The increase in super tax levy by Finance Act 2023 led to higher effective tax rate of 42% compared to 35% same period last year.
The highlight of the performance is record return on investments and dividend income aggregating to Rs 10.3 billion. As a result, net profitability of FFC stood at Rs 10.5 billion with earnings per share of Rs 8.27 compared to Rs 6.08 per share same period last year. Profitability in dollar terms at USD 38 million, however, remained static at the level of 2021.
The Board of Directors of FFC has announced first interim dividend of Rs 5.5 per share, for the first quarter of 2024.
Copyright Business Recorder, 2024
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