Ayesha Mudassar

Fatima Fertilizer Company Limited (FATIMA) reported a year-on-year (YoY) increase of 79% in profitability for the first nine months of the ongoing calendar year 2024, earning a net profit of Rs22.6 billion compared to Rs12.6 billion recorded in the corresponding period of last calendar, reports WealthPK.

According to the results available with the Pakistan Stock Exchange (PSX), the net sales increased by 6% YoY to Rs168.8 billion compared to Rs 159.4 billion in the nine months of CY23. The growth in sales coupled with a reduction in the cost of sales contributed to a 26% rise in the gross profit， which amounted to Rs63.7 billion in 9MCY24. Furthermore, the other income surged by an impressive 156% YoY to Rs6.6 billion in 9MCY24 against Rs2.6 billion in 9MCY23. On the expense side, the company’s administrative and distribution costs rose by 39% and 20%, respectively, during the review period.

Additionally, the other operating expenses saw a significant YoY increase of 71%, totalling Rs9.06 billion in 9MCY24. In contrast, the company’s finance cost marked a decline of 36% YoY and stood at Rs2.3 billion compared to Rs3.6 billion in 9MCY23. On the tax front, FATIMA paid a higher tax of Rs18.3 billion against Rs17.4 billion paid in the corresponding period last year, depicting an increase of 5% YoY. Fatima Fertilizer Company Limited was incorporated in Pakistan on December 24, 2003 as a public company under the repealed Companies Ordinance, 1984 (now Companies Act, 2017).

The company’s primary activities include the manufacturing, production, purchase, sale, import, and export of fertilizers and chemicals. Sectoral Financials- 3QCY24 Pakistan's fertilizer companies collectively reported an increase of 20% in gross profit, and 38% growth in net profit during the third quarter (July-September) of CY24 compared to the corresponding period in the previous year. In 3QCY24, the listed firms earned a total gross profit of Rs76.9 billion and a net profit of Rs41.5 billion, yielding gross profit and net profit margins of 36% and 20%, respectively.

As per the results compiled by WealthPK, the fertilizer sector’s net sales declined 11% to Rs212.3 billion in 3QCY24 from Rs239.2 billion in the same period of CY23. The fertilizer sector includes major companies such as Engro Fertilizers Limited (EFERT), Fauji Fertilizers Company Limited (FFC), Fatima Fertilizer Company Limited (FATIMA), and Fauji Fertilizer Bin Qasim Limited (FFBL). Among these, FFC leads the sector with a market capitalization of Rs414.4 billion, followed by EFERT with a market cap of Rs278.7 billion. FATIMA and FFBL rank third and fourth with market caps of Rs147.4 billion and Rs97.4 billion, respectively.

Credit: INP-WealthPk