$FFC Fauji Fertilizer Company Limited (FFC): Result Review – By IIS Research
$FFC
Fauji Fertilizer Company Limited
Rs. 543.91
-1.15%
- FFC announced its 4QCY25 results today, reporting an unconsolidated EPS of PKR 11.20 for the quarter and 51.70 on annual basis, which is lower than our expectation of PKR 16.1. The underperformance was mainly attributed to lower than anticipated gross margin which came down by 5.6% to 25.2% as compare to last quarter 30.8%.
- Net sales increased by 18% QoQ to PKR 149.7bn, primarily driven by improved fertilizer offtakes following a period of weak demand in the prior season. However, the cost of sales rose by 27% QoQ, offsetting the gains from the better offtakes. Finance charges remained flat, while higher than expected other income was observed. We await the detailed accounts for further clarification. The company declared a quarterly cash dividend of PKR 8.5 per share, bringing the total annual dividend to PKR 37 per share. The YoY increase in earnings also reflect the merger with FFBL effective from second half of CY25. The effective tax rate for the quarter stood at 47% and whereas on annual basis at 39%.