By: Arif Habib Limited
Earnings recorded a decline of 8% YoY: The Board of Directors (BoD) of Fauji Fertilizer Company Limited (FFC) announced the financial result for CY15 where the company posted profit after tax (PAT) of PKR 17bn (EPS: PKR 13.18) down 8% YoY from last year’s bottom line of PKR 18bn (EPS: PKR 14.28). Along with the results, the company announced final cash dividend of PKR 3.42/share (total interim dividend PKR 8.44/share), taking cumulative dividend for the year to PKR 11.86/share.
Sales witnessed an uptick of 4% YoY to PKR 84bn during the period, attributable predominantly to a 2% YoY rise in urea offtake to 2,421k tons.
Whereas gross margins clocked-in at 34% in CY15 down 4ppt YoY, mainly due to discounted urea prices during 4QCY15
Financial charges expanded massively by 74% YoY to PKR 1,475mn, owed to augmented borrowings.
While a 31% surge in other income was aided primarily by dividend income from AKBL.
The company booked effective tax rate of 32% in CY15 as compared to 31% in the previous year.