Wednesday, June 19, 2024

Fauji Fertilizer Profit Drops to Rs. 20 Billion in 2022

Fauji Fertilizer Company Limited (FFC) has announced its financial results for the year ended December 31, 2022, in its Board of Directors meeting held today. The year 2022 was full of challenges ranging from socioeconomic, geopolitical, governmental, and environmental factors.

The year witnessed galloping inflation, double-digit interest rates, and a sharp devaluation of the Pakistan rupee, along with heavy floods during the second half of the year, negatively impacting the company’s costs, the statement added.

In addition to the exemption of output GST, the levy of the super-tax had an impact on profitability, resulting in an effective tax rate of more than 40%.

Efficient treasury management and increased dividend payouts by associated companies resulted in the highest-ever other income of Rs 14.4 billion compared to Rs 7.9 billion last year. This enabled the company to achieve profitability of Rs 20 billion with an EPS of Rs 15.76 compared to Rs 17.21 last year, it noted.

The dollarized profitability of the company, declined by 29% to $97 million compared to $137 million last year.

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