FFBL Reports Massive 72% Decline in Profits During 9 Months of 2022

Fauji Fertiliser Bin Qasim Limited (FFBL) has announced the financial results for the nine months ended September 30 of the calendar year 2022. According to the company’s financial results announced on Tuesday, it reported a net profit of Rs. 1.714 billion for the nine months ended September 30, calendar year (CY) 2022, showing a big decrease of 72 percent year-on-year (YoY) compared to a net profit of Rs. 6.15 billion in the same period last year. FFBL posted net sales of Rs. 93.5 billion during 9MCY22 on a surge in urea and DAP prices by 24 percent and 94 percent YoY, respectively, according to a report by Arif Habib Ltd. During 3QCY22, the topline settled at Rs. 22.5 billion, down by 41 percent YoY due to significant drops in urea and DAP offtake as floods ravaged the country. Gross margins clocked in at 16.64 percent between July-September due to high phosphoric acid prices and low offtake. During the nine months of CY22, the other expenses ascended by 75 percent YoY to Rs. 8.06 billion due to heavy exchange rate loss during the period. Conversely, FFBL’s other income declined by 35 percent YoY to Rs. 5.33 billion due to lower dividend income. The financial cost of the company climbed by 54 percent YoY, clocking in at Rs. 2.8 billion in 9MCY22 amid higher interest rates. On a QoQ basis, the same charges increased by 113 percent due to the same reason. The company reported earnings per share at Rs. 1.33 during 9MCY22 compared to EPS of Rs. 4.78 during the same period last year. FFBL’s scrip at the bourse was closed at Rs. 18.83, down by Rs. 0.47 or 2.44 percent, with a turnover of 1.778 million shares on Tuesday.