Fauji Fertilizer Company Limited (FFC), one of Pakistan’s largest fertilizer producers, posted a profit-after-tax of Rs47.45 billion in 2023, an increase of over 38%, as compared to Rs34.37 billion in 2022.

According to the consolidated profit and loss statement shared by the company at the Pakistan Stock Exchange (PSX) on Friday, the board of directors met on January 23, 2024, to review the company’s financial and operational performance.

The BoD announced a final cash dividend of Rs4.10 per share i.e. 41%. This is in addition to an interim dividend already paid at Rs11.39 per share i.e.113.9%.

Earnings per share (EPS) were recorded at Rs37.30 in 2023 as compared to EPS of Rs27.02 in the same period last year (SPLY).

During the calendar year, FFC saw its revenue rise to Rs181.38 billion compared to Rs125.68 billion in SPLY, which is an increase of more than 44%.

FFC announces final results for 2022

The company’s gross profit increased by nearly 55%, clocking in at Rs76.84 billion in 2023, compared to Rs49.69 billion in SPLY. Resultantly, FFC’s profit margin improved to 42.36% in 2023, as compared to 39.54% recorded in 2022.

FFC’s ‘other income’ also increased to Rs16.36 billion in 2023, compared to Rs11.49 billion in SPLY, an increase of over 42%.

Meanwhile, the company’s finance cost increased marginally by 11% from Rs5.93billion in CY2022 to Rs6.59 billion in CY2023. The other expenses also rose significantly to Rs5.44 billion in 2023, up over 78%, as compared to Rs3.05 billion in 2022.

FFC said the profitability for 2023 barely covers its requirement to build up reserves for the capital-intensive and foreign exchange-denominated nodal compression project in addition to essential maintenance of plants.

“The company is about to kick off phase II of the critical Nodal Compression Project with a capital outlay of over $100 million,” said the company.

FFC said it also enabled savings of around $1 billion in foreign exchange to the country via import substitution during 2023 with aggregate savings of around $4.8 billion during the last five years.