Fauji Fertilizer Bin Qasim Limited (FFBL) has published financial results for the three-month period ending March 31, 2018, reporting a loss of Rs . 449,379 million against losses worth Rs. 134,798 million last year.
The earnings per share of the company also decreased with Rs. -0.48 compared to the loss per share of Rs 0.14 in the corresponding period last year.
The company reported a decrease in losses, mainly due to improved gross profit margins from its core fertilization activities to 7% versus -3% in the corresponding period last year.
The income is below expectations, probably as a result of lower than expected contribution from investments.
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During Q12018 the net sales of 28.56% year-on-year to Rs 10.28 billion compared to Rs 7.99 billion last year, due to an increase in urea consumption of 133%, an increase in urea and DAP prices and the change in the subsidy mechanism (previously included in other income).
The gross profit saw a huge improvement compared to the loss last year due to better prices and commenc ement of the power plant. The increase was due to an increase in UREA prices by 2.3% to Rs1310-1315 per bag.
Top-line registered growth of 29% year-on-year thanks to an improvement in the total fertilizer consumption by 8% on an annual basis and higher fertilizer prices.
On the expenditure front, FFBL reported an increase of 2% in sales and distribution costs, a decrease of 37.88 percent in administrative costs, while the other operating costs at the company increased by 1498.39 percent during the reporting period. had risen.
Other income of the company fell by 65% due to a change in the subsidy mechanism of the company.
The share of FFBL on the stock market ended at Rs 41.90, which was 5% higher with a turnover of 3.43 million shares.
Investment
Together with the result, FFBL announced a further investment in Fauji Meat Limited with a maximum PKR 1.5 billion in shares and a subordinated loan of PKR 3.5 billion through a combination of 30:70 equity and debt.
| Comparison of Key Financials Unconsolidated profit and loss account – for the three months ending on 31 March st 2018 |
|||
| Key finance | March, 2018 | March, 2017 | % Change |
| Amounts in PKR & # 39; | |||
| Sale – net | 10.282.860 | 7.998.759 | 28.56% |
| Cost of Sales | 9,537,339 | 8,252,630 | 15.57% |
| Gross profit / (loss) | 745521 | (253871) | |
| Sales costs for sales and distribution | 935.513 | 917.158 | 2.00% |
| Administrative costs | 238.828 | 384.464 | -37.88 % |
| Financing costs | 419.272 | 477.375 | -12.17% |
| ] Remaining e operating costs | 162.780 | 10.184 | 1498.39% |
| Other income | 360,482 | 1,745,412 | -79.35% |
| Loss before tax | (650390) | (297640) | 118,52% |
| Taxes | 201011 | 162,842 | 23,44% |
| Loss after taxes | (449,379) | (134.798) | 233.37% |
| Other extended income | – | – | |
| Total loss | (449.379) | (134.798) [1 9459018] | 233.37% |
| Loss per share – base and diluted | (0.48) | (0.14) | 242.86% |
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