January 29, 2020 (MLN): Fauji Fertilizer Bin Qasim (FFBL), Pakistan’s largest urea manufacturing company has incurred losses worth Rs 8.3 billion in CY19, against the profits of Rs 778 million earned in CY18.
This translated into loss per share (LPS) of Rs6.82, against the Earning per share (EPS) of Rs 1.68 recorded in the previous year.
The erosion in company’s bottom line is mainly attributable to a reduction in gross margins by 3ppt from 18% to 15% YoY due to higher gas price, PKR depreciation and a substantial rise in finance cost and tax expenses.
The finance cost of the company surged by 90% YoY to Rs 9.9 billion on the back of higher short-term borrowings whereas, tax expenses jumped 7 times high to Rs 4.58 billion from Rs 590.6 million recorded in 2018.
Due to notable rise in urea/DAP prices during the year, the company’s topline earnings rose to Rs 81.5 billion, depicting a growth of 5% YoY.
|
Consolidated Profit and Loss for the year ended December 31, 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-19 |
Dec-18 |
% Change |
|
Sales-net |
81,520,667 |
77,555,064 |
5.1% |
|
Cost of Sales |
(69,139,520) |
(63,335,899) |
9.2% |
|
Gross Profit |
12,381,147 |
14,219,165 |
-12.9% |
|
Selling and distribution cost |
(7,103,557) |
(7,425,513) |
-4.3% |
|
Administrative expenses |
(2,412,601) |
(2,285,668) |
5.6% |
|
|
(9,516,158) |
(9,711,181) |
-2.0% |
|
Operating profit |
2,864,989 |
4,507,984 |
-36.4% |
|
Finance costs |
(9,909,862) |
(5,213,584) |
90.1% |
|
Other expenses |
(807,238) |
(1,676,638) |
-51.9% |
|
Allowance for expected credit losses |
(391,459) |
– |
|
|
Other Income |
1,369,318 |
1,348,654 |
1.5% |
|
Share of profit of associates and joint venture- net |
3,082,969 |
2,402,358 |
28.3% |
|
Profit/(loss) before taxation |
(3,791,283) |
1,368,774 |
|
|
Taxation |
(4,580,554) |
(590,670) |
675.5% |
|
Profit/(loss) after taxation |
(8,371,837) |
778,104 |
|
|
(Loss)/Earnings per share – basic and diluted (Rupees) |
(6.82) |
1.68 |
|
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