Fauji Fertilizer Company Limited (FFC) announced the financial result for CY18 on Thursday where the company posted a profit after tax (PAT) of Rs 14.4 billion (earning per share Rs. 11.35), up by 35% YoY from last year’s profitability of Rs. 10.7 billion (earning per share Rs. 8.42).
On a sequential basis, profitability during 4QCY18 surged by 24% YoY to clock-in at Rs. 5.9 billion (earning per share Rs. 4.65).
Along with the result, the company announced a final cash dividend of Rs. 3.90 per share taking CY18 dividend to Rs. 8.85 per share.
Sales surged by 17% YoY to Rs. 106 billion during CY18, predominantly attributable to 16% YoY higher urea prices along with 25% YoY surge in DAP prices.
Gross margins clocked-in at 26.4% in CY18 (up by 6.5ppt YoY), owing primarily to higher urea and DAP prices.
Financial charges declined by 34% YoY to Rs. 1.6 billion amid lower borrowings, while other income dropped by 39% YoY to Rs. 6.3 billion on account of absence of cash subsidy on urea and DAP.
The company booked effective taxation at 33% in CY18.
