FFBL cuts quarterly loss to Rs249 million

Result is disappointing as analysts expected the company to post profit

KARACHI: Fauji Fertilizer Bin Qasim (FFBL) managed to bring down its loss to Rs249 million in the quarter ended June 30, 2017 compared to a loss of Rs381 million in the same period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Loss per share came in at Rs0.27 in April-June 2017 compared to Rs0.41 in the corresponding quarter of previous year. Along with the result, the company announced a dividend of Rs0.10 per share, though there were expectations that the fertiliser manufacturer would offer no pay-out, a JS Research report said on Wednesday.



“The results were disappointing because there were expectations of profits for the quarter. Improvement in margins was also expected due to depressed phosphoric acid prices,” the report added.

In the first six months (Jan-Jun) of 2017, the company posted a loss of Rs384 million compared to a loss of Rs895 million in the same period of last year. FFBL stock closed at Rs37.56 at the PSX, up 1.48%. However, the benchmark KSE 100-share Index edged down 9 points (0.02%) to stand at 45,908.

In response to the earlier announcement of a rights share issue by Fauji Foods Limited, FFBL revealed its intention to subscribe to 100% of the rights issue. Total investment is expected to be Rs2.04 billion.



The Fauji group is fast diversifying its operations. Fauji Meat Limited - a subsidiary of FFBL - officially commenced commercial operations of its meat processing and export business in January this year.



The meat plant is said to be one of the world’s largest processing and exporting facilities, established at a cost of $75 million.

Company officials expect the meat plant to earn revenues of Rs16-20 billion in the initial one to two years of its operations.

Published in The Express Tribune, July 27^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.