AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Islamabad: Fauji Fertilizer Limited (FFC) held a corporate briefing today to discuss its financial performance and future plans, highlighting significant growth and strategic initiatives. The company reported a 14% year-over-year increase in earnings, reaching Rs57.6 billion for the first nine months of the calendar year 2025, with an earnings per share (EPS) of Rs40.50.
FFC’s topline for the period stood at Rs283 billion, marking a 26% increase compared to the previous year. This growth was primarily driven by higher volumes following a merger. The company’s gross margin during this period was reported at 33%.
In the third quarter of 2025, FFC’s sales revenue was Rs127 billion, an 18% increase from the previous year. However, the gross margin of 31% fell below expectations, which the management attributed to a higher contribution from DAP volumes. Consequently, earnings for the quarter decreased by 22% year-over-year, totaling Rs19 billion with an EPS of Rs13.48.
A noteworthy volumetric growth of 39% quarter-over-quarter was recorded, with Urea and DAP contributing 42% and 27%, respectively. This was mainly due to efficient distribution channels and a competitive discount of Rs70 per bag offered by the company, which is lower than its peers.
Looking ahead, the management expressed optimism regarding the progress on the wheat support price, which is expected to enhance volumes through improved farm economics. The company anticipates expanding its network of Sona Centres from around 100 to over 200 in the near future.
The management forecasts Urea off-take to reach approximately 6.3 million tons by the end of the year, with inventory levels expected to close below 1 million tons. No updates were provided on export progress, but a maintenance turnaround for plant-II is scheduled for December 2025.
On the Shariah compliance front, FFC reaffirmed its commitment to achieving full compliance, with significant progress already made. These developments will be reflected in the third-quarter accounts of 2025.
Furthermore, the company updated stakeholders on the coal gasification project, leveraging the country’s substantial coal reserves. A detailed feasibility evaluation is underway, with further developments anticipated early next year.