{"id":9997,"date":"2025-07-18T11:02:30","date_gmt":"2025-07-18T06:02:30","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=9997"},"modified":"2025-07-18T11:18:30","modified_gmt":"2025-07-18T06:18:30","slug":"ffc-earnings-preview-what-to-expect-in-2qcy25","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/ffc-earnings-preview-what-to-expect-in-2qcy25\/","title":{"rendered":"FFC earnings preview: lower sales, but solid dividend expected"},"content":{"rendered":"\n

Fauji Fertilizer Company (FFC<\/a>),<\/strong> one of Pakistan\u2019s leading fertilizer producers, is expected to post profits of PKR 15.5 billion<\/strong> in the second quarter of 2025. This translates to earnings per share (EPS) of PKR 10.9<\/strong>.<\/p>\n\n\n\n

While this is a 29% drop compared to the same quarter last year<\/strong>, it\u2019s still a strong performance, and here’s what\u2019s driving the numbers.<\/p>\n\n\n\n

Why did earnings fall?<\/h2>\n\n\n\n
    \n
  1. Lower Urea Sales<\/strong>
    FFC sold 585,000 tons of urea<\/strong> in the quarter, which is 24% less than last year<\/strong>. This decline in sales volume had a direct impact on revenue and profit.<\/li>\n\n\n\n
  2. Reduced Gross Margins<\/strong>
    FFC\u2019s profit margins are expected to shrink by 9 percentage points<\/strong> year-over-year. A major reason for this is the higher share of urea sales coming from its lower-margin subsidiary, FFBL.<\/li>\n\n\n\n
  3. Drop in Other Income<\/strong>
    The company usually earns income from its investments, like dividends from Askari Bank (    AKBL<\/a>)<\/strong>. But this quarter, there was no such dividend<\/strong>, which also hurt the bottom line.<\/li>\n<\/ol>\n\n\n\n

    What\u2019s still positive?<\/h2>\n\n\n\n
      \n
    1. Quarter-on-Quarter Growth<\/strong>
      Compared to the previous quarter (1QCY25), earnings are expected to rise by 17%<\/strong> thanks to better sales and lower costs.<\/li>\n\n\n\n
    2. Strong DAP Sales<\/strong>
      FFC sold 199,000 tons of DAP<\/strong> in the quarter, more than double<\/strong> what it sold in the last quarter.<\/li>\n\n\n\n
    3. Lower Finance Costs<\/strong>
      With interest rates falling<\/strong> and debt levels decreasing<\/strong>, FFC\u2019s finance cost is expected to drop by 47% year-on-year<\/strong>.<\/li>\n<\/ol>\n\n\n\n

      What about dividends?<\/h2>\n\n\n\n

      Despite the profit dip, FFC is expected to announce a cash dividend of PKR 8.5 per share<\/strong>, a solid return for investors.<\/p>\n\n\n\n

      Quick look at FFC\u2019s sales volumes<\/h2>\n\n\n\n
      Product<\/th>2QCY25<\/th>2QCY24<\/th>YoY Change<\/th>1QCY25<\/th>QoQ Change<\/th><\/tr><\/thead>
      Urea<\/td>585kt<\/td>771kt<\/td>\u2193 24%<\/td>538kt<\/td>\u2191 9%<\/td><\/tr>
      DAP<\/td>199kt<\/td>199kt<\/td>0%<\/td>88kt<\/td>\u2191 125%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

      Summary for investors<\/h2>\n\n\n\n
        \n
      • Profits are lower than last year, mainly due to lower urea sales and missing dividend income.<\/li>\n\n\n\n
      • But quarter-on-quarter improvement and higher DAP sales show positive signs.<\/li>\n\n\n\n
      • Investors can look forward to a healthy PKR 8.5\/share dividend<\/strong>.<\/li>\n\n\n\n
      • FFC remains a key player in Pakistan\u2019s fertilizer market and could benefit as farm activity picks up.<\/li>\n<\/ul>\n\n\n\n

        Source: Insight Securities (Private) Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

        Fauji Fertilizer Company (FFC), one of Pakistan\u2019s leading fertilizer producers, is expected to post profits of PKR 15.5 billion in the second quarter of 2025. This translates to earnings per share (EPS) of PKR 10.9.<\/p>\n","protected":false},"author":9252,"featured_media":6691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[89],"class_list":["post-9997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-ffc"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/FFC-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/FFC-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/FFC-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/FFC-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=9997"}],"version-history":[{"count":2,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9997\/revisions"}],"predecessor-version":[{"id":10000,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9997\/revisions\/10000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6691"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=9997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=9997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=9997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}