FFC profit drops 22% amid lower margins
Fauji Fertilizer Company Limited (FFC) reported a 22% year-on-year fall in third-quarter profit for CY2025, posting net earnings of Rs19.2 billion (EPS Rs13.5) compared with Rs24.5 billion (EPS Rs17.2) in the same period last year.
The earnings were below market expectations, largely due to lower-than-anticipated gross margins. Alongside the results, FFC declared an interim cash dividend of Rs9.5 per share, taking the cumulative payout to Rs28.5 per share for the first nine months of 2025.
Read More: FFC profit goes up by 36%
Net revenue during 3QCY25 rose 18% year-on-year to Rs127.3 billion, driven by a 14% increase in urea sales. However, gross margins narrowed to 31% from 37% a year earlier, mainly due to weaker profitability in the DAP segment.
Other income declined 50% year-on-year to Rs6.3 billion following reduced dividend income, while finance costs fell 25% amid easing interest rates. On a quarterly basis, FFC’s earnings slipped 24% as the company did not benefit from the high dividend income seen in the previous quarter.
For the first nine months of 2025, cumulative earnings rose 14% year-on-year, supported by a 21% jump in other income and improved performance from the DAP business after its merger with Fauji Fertilizer Bin Qasim Limited (FFBL).
FFC remains one of Pakistan’s leading fertilizer producers, and despite the quarterly dip, analysts note its stable payout history and growing DAP operations as key strengths for future performance.
