Ayesha Mudassar

Fauji Fertilizer Bin Qasim Limited (FFBL) experienced a massive decline of 52% and 245%, respectively, in gross and net profits in the first half (January-June) of the calendar year 2023 as compared to the corresponding period of 2022, WealthPK reports. The combination of discriminatory tax policies, strict monetary measures, and the prevailing economic challenges, including high inflation and currency devaluation, collectively dented the company’s profitability in the first half of 2023.

FFBL posted a gross profit of Rs6.7 billion and a net loss of Rs4.9 billion in the first half of CY23. Therefore, the firm came up with gross profit and net loss ratios of 10.2% and 7.42%, respectively. FFBL posted a loss per share of Rs3.83 in 1HCY23.

The company’s sales stood at Rs66.7 billion in 1HCY23 as compared to Rs70.9 billion in 1HCY22. The firm had posted gross profit and net profit ratios of 20% and 4.81%, respectively, in 1HCY22. The company reported an EPS of Rs2.64 in 1HCY22.

FFBL-1QCY23 vs 1QCY22

In the first quarter (January-March) of 2023, FFBL sales increased 27% compared to the corresponding period of CY22. However, the company bore a net loss during this quarter. FFBL posted a gross profit of Rs2.2 billion and a net loss of Rs5.4 billion in the first quarter of 2023. The company created gross profit and net loss ratios of 7% and 17.2%, respectively. The company also posted a loss per share of Rs4.20 in the 1QCY23.

The company’s sales had stood at Rs24.7 billion in 1QCY22, with gross and net profit ratios clocking in at 21.7% and 6.6%, respectively. FFBL had reported an EPS of Rs1.26 in 1QCY22.

FFBL-2QCY23 vs 2QCY22

In comparison to 1QCY23, FFBL’s financial performance improved in the second quarter. The company posted a gross profit of Rs4.5 billion and a net profit of Rs479 million on sales of Rs35 billion this quarter. The company created gross profit and net profit ratios of 13% and 1.4%, respectively. FFBL posted earnings per share of Rs0.37 in 2QCY23.

In comparison to 2QCY22, the company’s sales dropped 24% in 2QCY23. Furthermore, the gross and net profits fell by 48% and 73%, respectively, in 2QCY23.

Credit: INP-WealthPk