Fauji Fertilizer Company Limited (PSX: FFC) recorded its highest-ever unconsolidated quarterly profit of Rs. 25.2 billion (EPS: Rs. 17.7) during 2Q2025.
The firm’s 2Q2025’s profit is up 62 percent on a year-over-year (YoY) basis and 90 percent over quarter-over-quarter (QoQ) basis.
Th company’s performing during the second quarter took 1H2025 earnings to Rs. 38.5 billion (EPS: Rs. 27.02), up 47 percent YoY.
The 2Q2025 result came higher than industry expectations due to higher-than- expected other Income, said brokerage house Topline Securities.
Other income stood at Rs. 20.7 billion in the quarter under review. Topline said according to its channel checks, FFC has reported Rs. 9 billion dividend income from energy businesses, Rs. 7 billion from PMP, and rest is interest income on cash and equivalents.
Net sales of the company were up 61 percent YoY and 44 percent QoQ at Rs. 92 billion in 2Q2025 due to increase in Urea and DAP offtakes and higher prices.
Gross margins stood at 33.7 percent in 2Q2025 compared to 54.5 percent in 2Q2024 and 35.6 percent in 1Q2025. Distribution expenses fell by 57 percent YoY and 43 percent QoQ to Rs. 8.7 billion in 2Q2025 mainly due to higher offtakes and inflationary impact.
Finance cost stood at Rs. 1.7 billion, up 24 percent YoY and 1 percent QoQ due to higher borrowings.
Tax expense clocked in at Rs. 13.2 billion (effective tax rate of 34 percent) in 2Q2025 vs. Rs. 11.6 billion (effective tax rate of 42.7 percent) in 2Q2024.
Along with the results, the company also declared its second interim cash dividend of Rs. 12 per share. This takes the total 1H2025 cash dividend to Rs. 19 per share (payout ratio of 70 percent).
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