Fauji Fertilizer : Transmission of Quarterly Report March 31, 2024

Quarterly Financial Statements 2024

First Quarter

FINANCIAL

STATEMENTS

March 31, 2024

(Un-Audited)

CONTENTS

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25

Company Information

Directors' Review

Condensed Interim

Financial Statements

Condensed Interim

Consolidated Financial Statements

2

SAY NO TO CORRUPTION

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Quarterly Financial Statements 2024

Company Information

BOARD OF DIRECTORS

Lt Gen Anwar Ali Hyder, HI(M) (Retd)

Chairman

Mr. Jahangir Piracha

Managing Director & Chief Executive Officer

Lt Gen Waheed Arshad, T.Bt, HI(M) (Retd)

Mr. Saad Amanullah Khan

Ms. Maryam Aziz

Syed Bakhtiyar Kazmi

Mr. Shoaib Javed Hussain

Mr. Jehangir Shah

Dr. Ayesha Khan

Mr. Yassir Ghiyati Ibn Ziyad

Mr. Qamar Haris Manzoor

Maj Gen Zafar Ul Haq, HI(M) (Retd)

Mr. Waseem Ajmal Chaudhary

CHIEF FINANCIAL OFFICER

Syed Atif Ali

Tel No. [phone], Fax No. [phone]

E-mail: [e-mail]

COMPANY SECRETARY

Brig Zulfiqar Ali Haider, SI(M) (Retd)

Tel No. [phone], Fax No. [phone]

E-mail: [e-mail]

REGISTERED OFFICE

156 The Mall, Rawalpindi Cantt, Pakistan Website: www.ffc.com.pk

Tel No. [phone],[phone]

Fax No. [phone],E-mail: [e-mail]

PLANTSITES

Goth Machhi, Sadiqabad

(Distt: Rahim Yar Khan), Pakistan

Tel No. [phone], Fax No. [phone]

Mirpur Mathelo

(Distt: Ghotki), Pakistan

Tel No. [phone], Fax No. [phone]

MARKETING DIVISION

Lahore Trade Centre, 11 Shahrah-e-Aiwan-e-Tijarat,

Lahore, Pakistan

Tel No. [phone], Fax No. [phone]

KARACHI OFFICE

B-35, KDA Scheme No. 1, Karachi, Pakistan

Tel No. [phone], Fax No. [phone] & 34390122

AUDITORS

A.F.Ferguson & Co

Chartered Accountants

74-East, Blue Area, Jinnah Avenue, Islamabad

Tel No. [phone]-9,2870045-85, Fax No. [phone]

SHARES REGISTRAR

CDC Share Registrar Services Limited

CDC House, 99 - B, Block - B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi - 74400

Tel: [phone], Fax: [phone]

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DIRECTORS' REVIEW

For the three months ended March 31, 2024

Dear Shareholders

We are pleased to share our review of the Company's operational and financial performance for the first quarter ended March 31, 2024.

Operational Performance

Our manufacturing facilities operated above capacity without any shutdowns and produced 654 thousand tonnes of Sona Urea, which was 3% higher than same period last year.

Sona Urea sales stood at 661 thousand tonnes 5% higher than 2023, while the Company also marketed 94 thousand tonnes urea imported by the Government for steady supply of urea to the farmers. Aggregate urea sales of the Company thus stood at 755 thousand tonnes compared to 631 thousand tonnes of same period last year.

Financial Performance

Higher sales volume besides increase in selling prices due to significant escalation in gas prices towards close of last year resulted in higher sales revenue of Rs 58.4 billion compared to Rs 36.4 billion vs same period last year.

High cost of imported urea, inflation and higher gas prices caused the cost of sales to increase by 88% to Rs 41.1 billion. Distribution cost also surged by 70% to Rs 5.2 billion mainly due to the implementation of Axle Weight Regulation and impact of inflation. The increase in Super tax levy by Finance Act 2023 led to higher effective tax rate of 42% compared to 35% same period last year.

The highlight of our performance is the record return on investments and dividend income aggregating to Rs 10.3 billion. As a result, net profitability of the Company stood at Rs 10.5 billion with earnings per share of Rs 8.27 compared to Rs 6.08 per share same period last year. Profitability in dollar terms at USD 38 million, however, remained static at the level of 2021.

Based on above and after considering the requirement to build up reserves for capital-intensive projects, the Board of Directors is pleased to announce the first interim dividend of 55.5% (Rs 5.50 per share) for the period.

FUTURE OUTLOOK

According to the international agencies, Pakistan's economic situation is showing signs of stability. Tight monetary and fiscal policies have moderated the economic growth. However, there is an expectation of slight improvement in growth in the next fiscal year.

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Quarterly Financial Statements 2024

Phase II of capital-intensive Nodal Compression Project is progressing satisfactorily. The Board remains committed towards sustainability of the fertilizer business. The Company is striving to improve the yields of Pakistan's agriculture sector and food security of the Country.

On behalf of the Board,

Lt Gen Anwar Ali Hyder, HI(M), (Retd)	Jahangir Piracha
Chairman	Managing Director & Chief Executive Officer
Rawalpindi
April 29, 2024

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Quarterly Financial Statements 2024

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2024

Condensed Interim Financial Statements

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