Fatima Fertilizer’s earnings double to Rs6.8 billion

Company outperforms KSE-100 index as higher sales drive revenues

KARACHI: Fatima Fertilizer Company (FFC), a subsidiary of Fatima Group, more than doubled its profit to almost Rs7 billion in the first half of 2015, outperforming the benchmark Karachi Stock Exchange (KSE) 100-share index, the company’s financial report showed on Thursday.

Part of one of Pakistan’s leading conglomerates, Arif Habib Group, the company posted an after-tax profit of Rs6.8 billion or Rs3.25 per share in six months ended June 30, 2015, up 100% compared to Rs3.4 billion or Rs1.62 per share in the corresponding period of 2014.



Fatima Fertilizer outperformed the KSE-100 index by 33% (year to date), AKD Research said in a report.

The company’s revenues for the period under review were Rs18.8 billion, up 20% compared to Rs15.6 billion in the first six months of 2014.

The increase in revenue was driven by higher volumetric sales of urea, calcium ammonium nitrate (CAN) and nitrogen phosphorous (NP), which increased 63%, 8% and 8% respectively on a year-on-year basis, the report said.

Among other key highlights were gross margins, which rose 455 basis points to 61% compared to 56% in the corresponding period of 2014 and finance costs, which declined 37% year-on-year due to lower benchmark interest rate.

Besides, the company also benefited from an effective tax rate of 17% compared to 35% in 1HCY14 due to Dawood Hercules Fertilizer’s acquisition.

Global Research also attributed the higher sales to the increase in urea and CAN offtake, adding the discount rate cut of 300 basis points also pushed down financial charges during the six-month period.

The stock of Fatima Fertilizer traded at Rs48.01 per share at the close of business on Thursday after falling 2% from Rs49 per share, the closing price of the previous day.

Published in The Express Tribune, August 28^th,  2015.

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